The Congressional Budget Office (CBO) confirmed that rising prices are destroying family budgets for Americans in every income bracket, according to a report published today. CBO notes that across the income spectrum, the Biden economy has made workers and families poorer and less financially secure, with working-class families falling the farthest behind. With America’s economy in recession, projections show that the cost of goods is expected to grow faster than income in 2022, forcing Americans to make more painful decisions about their family budgets.
“Families across the entire income spectrum are worse off in Biden’s economy this year, with average income down and prices up for all Americans. Yet working-class families have fared the worst under this President and his failed policies. This year, families in the lowest income quintile will spend over 20 percent more of their income just to get by than they did last. Families in the second and middle quintile will spend about 15 percent more of their income,” said House Budget Committee Republican Leader Jason Smith (MO-08). “While many folks will have to look for second jobs just to keep up in the Biden economy, they will also have to look over their shoulders now that Washington Democrats green lit $80 billion for the IRS to hire 87,000 new agents to conduct over 700,000 more audits on low- and middle-income Americans. These are the same Americans being crushed by the highest spike in prices in 40 years caused by Democrats’ reckless spending and the largest cumulative increase in interest rates in over 15 years that is being done to combat today’s inflation crisis. One-party Democrat rule has clearly failed the American people.”
Read CBO’s report here.
Biden’s Inflation Recession
- Inflation is at a forty-year high of 8.3 percent.
- Inflation has increased 13.7 percent since Biden became President.
- Real wages have decreased 4.3 percent since President Biden took office.
- Gas prices have risen 55 percent since President Biden took office.
- 1 in 6 households are behind on utility payments.
- The average mortgage payment is 42 percent higher than one year ago.
- The average monthly payment for used cars has increased 27 percent since Biden took office.
- When Biden took office, CBO projected real GDP would grow 2.9 percent in the first quarter of this year. Real GDP fell by 1.6 percent.
- When Biden took office, CBO projected real GDP would grow 2.2 percent in the second quarter of this year. Real GDP fell by 0.6 percent.
- To combat the President’s inflation crisis, the Federal Reserve is raising interest rates, most recently by another 0.75 percentage points – the fifth rate increase since March with others expected on the horizon. In total, the federal funds rate has risen by 3.0 percentage points, the fastest cumulative rate hike in 40 years, as well as the largest rate hike in 15 years.