There’s a $4,200 hole in the average working American’s pocket due to inflation under President Biden, according to a new analysis.
SO WHAT
Inflation and the economy are still the biggest issues for voters ahead of the November midterm elections.
THE NUMBERS
The analysis, published last week by the Heritage Foundation, found that inflation and rising interest rates during Biden’s presidency have wiped out all the income gains working Americans made under former President Trump, and then some.
According to Heritage experts, consumer prices rose 12.7% from January 2021 to August 2022, while wages only rose 8%, leaving the average worker with about $3,000 less purchasing power.
- Meanwhile, repeated interest rate hikes in response to the runaway inflation have raised the average worker’s cost of borrowing by $1,200, per Heritage.
- Overall, then, the average earner— who made about $57,261 in the past 18 months — effectively lost more than 7% of his or her income due to inflation.
- Average wages rose around $4,000 under President Trump, while inflation remained low.
THE POLITICS
In an interview with CBS’ “60 Minutes” that aired last Sunday, Biden dismissed the month-to-month increase in inflation last month as “just an inch,” and cited low unemployment and other indicators to argue the shrinking economy is “growing in a way it hasn’t in years and years.”
- But Americans have made clear that they strongly disagree: A Washington Post-ABC News poll released Sunday found that registered voters plan to vote on those issues more than any others in November’s midterm elections.
- 93% of registered voters are “upset” or “concerned” about inflation, per the poll, and 54% trust Republicans more on the issue, versus 37% who trust Democrats more.