That's a heck of an accomplishment.
https://thehill.com/opinion/finance/3474968-joe-biden-is-making-americans-poorer/
Americans are getting poorer by the day, and they can thank President Biden.
Too harsh? Not at all. Stock markets are crashing, costing Americans trillions of dollars, and home prices will likely follow. All of this is happening even though our economy remains essentially strong.
Why the disconnect? Americans are worried about inflation and don’t think the Biden administration can fix it without plunging our economy into recession. With the president still hawking even more government spending, higher business taxes and increased regulations – all of which will drive prices higher – why would they?
Almost from the start, Americans knew that Biden’s policies were wrong for the country. From the second quarter of Biden’s presidency, consumer sentiment has trended sharply lower, even as jobs were plentiful and consumers flush with cash.
The University of Michigan consumer sentiment index stood at 88.3 in April 2021; today it has dropped to 59.4, one of the lowest levels since 1980, when the data were first collected. A reading, for sure, completely out of kilter with 3.6 percent unemployment.
According to a Real Clear Politics average of polls, only 38 percent of the nation approves of Biden’s management of the economy.
First, the facts: The economy shrank by an annualized rate of 1.4 percent in the first quarter, not because consumers stopped spending but mainly because we had a big jump in our trade imbalance. Imports surged nearly 18 percent on an annualized basis while exports fell. Economists at ISI Evercore estimate the blowout in the trade gap crimped real GDP growth in the quarter by 3.2 percent.
In effect, the import increase (and the drop in GDP) was yet another indication that U.S. consumers are spending like crazy; as Jamie Dimon, CEO of JP Morgan Chase, said recently, Americans are flush with cash, and he is right.
Ironically, that is part of the problem. Consumers in the U.S. received generous payouts from the federal government as both Presidents Trump and Biden stepped in to offset the short-lived but severe impact from the COVID-19-induced shutdowns.
https://thehill.com/opinion/finance/3474968-joe-biden-is-making-americans-poorer/
Americans are getting poorer by the day, and they can thank President Biden.
Too harsh? Not at all. Stock markets are crashing, costing Americans trillions of dollars, and home prices will likely follow. All of this is happening even though our economy remains essentially strong.
Why the disconnect? Americans are worried about inflation and don’t think the Biden administration can fix it without plunging our economy into recession. With the president still hawking even more government spending, higher business taxes and increased regulations – all of which will drive prices higher – why would they?
Almost from the start, Americans knew that Biden’s policies were wrong for the country. From the second quarter of Biden’s presidency, consumer sentiment has trended sharply lower, even as jobs were plentiful and consumers flush with cash.
The University of Michigan consumer sentiment index stood at 88.3 in April 2021; today it has dropped to 59.4, one of the lowest levels since 1980, when the data were first collected. A reading, for sure, completely out of kilter with 3.6 percent unemployment.
According to a Real Clear Politics average of polls, only 38 percent of the nation approves of Biden’s management of the economy.
First, the facts: The economy shrank by an annualized rate of 1.4 percent in the first quarter, not because consumers stopped spending but mainly because we had a big jump in our trade imbalance. Imports surged nearly 18 percent on an annualized basis while exports fell. Economists at ISI Evercore estimate the blowout in the trade gap crimped real GDP growth in the quarter by 3.2 percent.
In effect, the import increase (and the drop in GDP) was yet another indication that U.S. consumers are spending like crazy; as Jamie Dimon, CEO of JP Morgan Chase, said recently, Americans are flush with cash, and he is right.
Ironically, that is part of the problem. Consumers in the U.S. received generous payouts from the federal government as both Presidents Trump and Biden stepped in to offset the short-lived but severe impact from the COVID-19-induced shutdowns.
