Analysis finds Americans need extra $11,400 to afford the basics as GOP lawmakers blame Bidenomics

[GoldenBoy89]

I've got a bridge to moon I'm willing to try to sell to anyone who believes that the American economy is in excellent shape.

Which country currently has a stronger economy than the US?

 

[durangodawood]

There is not a politician anywhere who has been able to lower the national debt. No body, that I know of, in government is willing to do what it takes to lower our national debt. If there are some in government actually willing to do whatever it takes to lower our $33 trillion dollar national debt, then please tell me who they are.

Debt to GDP anyway.

And credit to congress of that era as well.

 

[Valletta]

The article just makes the categorical statement that this is Biden's fault. The only specific policies mentioned are those just announced, which cannot have had an effect yet, since they have not yet been implemented, and there's no discussion of how "Bidenomics" has increased the prices of basic goods, just assertions that it is responsible.

If it's so obvious, you should be able to point to specific changes that have been implemented since January of 2021 and find economic analysis on how those changes have negatively affected the economy.

Certainly the Democrats in Congress and other Democrats should share the blame. Too much time is being spent on image. For example, rather than make helpful economic changes the administration is working with TikTok to sell the story to young voters and potential voters that Joe has saved our economy and America is doing quite well. On the international front Joe has not held foreign countries to equitable and fair trade deals (or global warming standards) and has allowed foreign countries to send their criminals and those not interested in American values to the U.S., which has created a huge economic burden. So too the money pumped into EVs and charging systems and solar power before the technology was economically viable has been a disaster. What is Joe working on? Trying to get around the Supreme Court ruling and pay off student loans. While this might help White House and Congressional staffers it takes the money from hard working taxpayers and re-distributes it to a group Joe favors. It only creates a bigger tax burden.

 

[USincognito]

Country Rankings: World & Global Economy Rankings on Economic Freedom

Country rankings based on economic freedom. World and global economy rankings from the Index of Economic Freedom are published by The Heritage Foundation.

www.heritage.org

The United States ranks 25th in economic freedom.

According to the Heritage Foundation? Shocking.

 

[USincognito]

Where would you prefer for the United States to be ranked in economic freedom?

Personally I'd rather see us ranked high on a list which focuses on the economic freedom enjoyed by working and middle class folks rather than worrying more about whenever billionaires can afford tender yachts to service their mega yachts.

 

[Valletta]

Personally I'd rather see us ranked high on a list which focuses on the economic freedom enjoyed by working and middle class folks rather than worrying more about whenever billionaires can afford tender yachts to service their mega yachts.

I agree. A worker should be able to decide whether to join a union or not, and not have to pay union dues if the person does not join. If you have a successful restaurant where you cook with a gas stove you should be allowed to continue to use that gas stove. You should be able to start a small business and expect the government to provide some basic protection from crime. Small businesses are pleading with Democrats to change the bail reform laws and put robbers and shoplifters in jail. So too the lower and middle class should be able to attend a prestigious school of their choice without bias toward race. Workers in industries, whether it be those who work in the oil industry or automotive industry, should not lose their jobs just because a president pushes woke policies. So too kids, particularly in lower income areas, are not being provided the education they need to succeed because of the lack of enforcement of disipline.

 

[Gene2memE]

This analysis totally ignores the fact that the rest of the world exists. The US is not an island alone in the world, it's a chunk of the interconnected global economy.

US inflation is low compared to it's OECD peers - probably the only country that has done better at taming inflation over the last 2 1/2 years is South Korea. That's only because their economy has grown at less than half the rate of the US economy over the same period.

In the 34 months since Jan-2021, the US has seen inflation above that of the rest of the western developed world for 10 months. Inflation has been roughly equal with the rest of the world for four months. The US has experienced lower inflation than peer economies for 20 months.

Inflation in the US peaked earlier than the rest of the OECD (June 2022 vs October 2022) and it peaked at a lower level than the rest of the OECD (9.4% vs 10.7%).

When people are doing things tough, it's easy to complain. It's hard to swallow that your neighbours might doing even worse and that your situation is not so bad in comparison.


I'll challenge people to come back to this analysis in 6 months time and see how price inflation is doing compared to real take home wages.

 

[BPPLEE]

The misinformation posted is no longer working.

US inflation hits its lowest point since early 2021 as prices ease for gas, groceries and used cars​

US inflation hits its lowest point since early 2021 as prices ease for gas, groceries and used cars

The inflation figure the government reported was down sharply from a 4% annual rate in May, though still above the Fed’s 2% target rate.

apnews.com

Biden has managed to get inflation back to the point it was at during a pandemic?

 

[BPPLEE]

Biden’s policies include increasing the amount of regulations and taxes upon business thus raising the costs of doing business. Biden’s policies include spending trillions upon trillions of dollars that we don't have thus devaluing the dollar which means higher inflation.

Such as the inflation reduction act which is really just a green energy bill and we still don’t know exactly how much it will cost

 

[Gene2memE]

Debt to GDP anyway.

And credit to congress of that era as well.

The Clinton administration actually managed a net reduction in the dollar value of the US debt too - cutting about $300 billion from it between 1999 and 2001, and lowering debt to GDP ratio from 66% to 55% by the end of Clinton's time in office.

The Obama administration managed to reduce the debt to GDP ratio twice in its final term, although it only gets partial credit for FY2017. While it set the budget for the year, most of the reduction occurred in the first months of the Trump administration.


Bear this in mind as well - about 25% of the US debt is intra-governmental debt. This is basically money owed by one branch of government to another (or obligations, like with Social Security). Another 15% of US debt is held by the Federal Reserve. That's doubled since 2020 (thanks to stimulus efforts in the form of buying Treasury securities) but with quantitative tightening, that is due to be cut in half by the end of 2025.

 

[Vambram]

Personally I'd rather see us ranked high on a list which focuses on the economic freedom enjoyed by working and middle class folks rather than worrying more about whenever billionaires can afford tender yachts to service their mega yachts.

I'm not sure if you really understand the economic freedom ratings from the Heritage Foundation.

 

[Gene2memE]

Such as the inflation reduction act which is really just a green energy bill and we still don’t know exactly how much it will cost

Sure we do. The CBO released a full analysis.

 

[rturner76]

I think "the basics" have changed. It used to be a mortgage, utilities, taxes, phone bill, possibly a car payment (if you can afford it), and insurance.

Nowadays it means high-speed internet, a house phone, and a smartphone for every household member, utilities and insurance for a house, multiple under 25 drivers Tablets, laptops and/or PCs for every household member. Eating fast food half the time, Amazon gadgets, Prime, Netflix, Disney Plus, cable TV or satellite, new clothes every year. A car payment for everyone in the house old enough to drive, insurance, and Vegan or organic food that is locally sourced.

Of course, the price of living has gone up from just having rent/mortgage, light bill, and insurance for dad's car and the house/apartment/condo.

 

[Gene2memE]

I'm not sure if you really understand the economic freedom ratings from the Heritage Foundation.

The HF's EFI always reads a little bit like it's trying to answer the question "How free are capitalists to exploit the population of this country?"

 

[BPPLEE]

I think "the basics" have changed. It used to be a mortgage, utilities, taxes, phone bill, possibly a car payment (if you can afford it), and insurance.

Nowadays it means high-speed internet, a house phone, and a smartphone for every household member, utilities and insurance for a house, multiple under 25 drivers Tablets, laptops and/or PCs for every household member. Eating fast food half the time, Amazon gadgets, Prime, Netflix, Disney Plus, cable TV or satellite, new clothes every year. A car payment for everyone in the house old enough to drive, insurance, and Vegan or organic food that is locally sourced.

Of course, the price of living has gone up from just having rent/mortgage, light bill, and insurance for dad's car and the house/apartment/condo.

And that’s just for people getting public assistance and SNAP.

 

[BPPLEE]

The Clinton administration actually managed a net reduction in the dollar value of the US debt too - cutting about $300 billion from it between 1999 and 2001, and lowering debt to GDP ratio from 66% to 55% by the end of Clinton's time in office.

The Obama administration managed to reduce the debt to GDP ratio twice in its final term, although it only gets partial credit for FY2017. While it set the budget for the year, most of the reduction occurred in the first months of the Trump administration.


Bear this in mind as well - about 25% of the US debt is intra-governmental debt. This is basically money owed by one branch of government to another (or obligations, like with Social Security). Another 15% of US debt is held by the Federal Reserve. That's doubled since 2020 (thanks to stimulus efforts in the form of buying Treasury securities) but with quantitative tightening, that is due to be cut in half by the end of 2025.

I have to give Clinton credit, when he said the era of big government is over he practiced what he preached.

 

[comana]

This is a different topic than the one for this thread. However, you might trust the government to run the nation's health care system. But, I know for a fact that I will never trust the USA government to run the nation's health care system..... no matter who is in charge of our government.

The majority of retirees would disagree when it comes to Medicare.

 

[iluvatar5150]

I wish that the republicans complaining about Biden would actually put a candidate who could fix the problems. Instead, they keep looking to a guy who raised the national debt by 7.8 trillion dollars IN ONLY FOUR YEARS, and claim he will come back and fix it.

…a guy who proposes (inflationary) tariffs as a primary tool of foreign policy.

I'm not sure if you really understand the economic freedom ratings from the Heritage Foundation.

I drilled down into the scores and the US got a 0 for its fiscal situation, which I assume is largely dependent on the debt to gdp ratio (though they didn’t explain it clearly). What they also didn’t explain was how that impacts my “freedom” rather than it merely being something they don’t like.

 

[Vambram]

Biden distances himself from 'Bidenomics' phrase he used for months, as public sentiment remains sour: Report

President Biden appears to have dropped "Bidenomics" from his public speeches on the economy, as Democratic strategists warn his team's messaging hasn't swayed voters.

www.foxnews.com

 

[Gene2memE]

I have to give Clinton credit, when he said the era of big government is over he practiced what he preached.

Mostly thanks to the peace bonus from the end of the Cold War.

Armed services personnel went from 2.1 million at the start of the Clinton Administration to 1.4 million at the end of it. The VA and various intelligence services also ended up with considerable reductions.