A recent report from the Heritage Foundation has revealed that an average American has lost close to $4,200 in annual income since President Joe Biden came into office.
With rising inflation and higher interest rates, the average American worker has lost about $3,000 in annual purchasing power.
Consumer prices have risen 12.7% since January 2021, faster than wages, resulting in a loss of individual purchasing capacity, according to the conservative think tank.
Additionally, with higher interest rates, the average American’s purchasing power has been reduced by another $1,200 annually. The rate hikes have also increased the borrowing costs on vehicle loans, credit cards, and mortgages.
EJ Antoni, a research fellow in regional economics with the Heritage Foundation’s Center for Data Analysis, said that Americans today are $4,200 poorer than when Biden took office.
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In contrast, Antoni says under the Donald Trump administration, the average American’s annual earnings increased by $4,000.
“This financial catastrophe for American families is the direct result of a president, and Congress addicted to spending our money, combined with a Federal Reserve compliantly enabling this addiction by printing more dollars,” the researcher said.
Antoni has said that to cope with rising costs and interest rates, Americans are taking additional debt to manage higher living costs.
“Now, the Fed is finally fighting inflation, pushing up interest rates and increasing financing costs,” he noted. “Rates on all kinds of consumer debt are rising. For example, mortgage interest rates have doubled since Biden took office, greatly increasing Americans’ monthly payments.”
Last week, the Federal Reserve hiked the benchmark index by 0.75% and indicated it would keep hiking well above the current level.
This rise marks the third 0.75% rate hike for the Fed in four months as it continues to battle inflation.
Photo: Helen Alfvegren on flickr
Image and article originally from www.benzinga.com. Read the original article here.