Americans have lost $4,200 in income under Biden, wiping out Trump gains: Heritage
Inflation is ‘not transitory,’ will not have ‘soft landing’: Russ Vought
Former OMB director Russ Vought responds to the Fed’s 75 basis point rate hike announced Wednesday, analyzes the impact of President Biden’s economic policies on the economy, and discusses potential changes should Republicans take back Congress.
The average American has lost more than $4,000 in annual income since President Biden took office due to soaring inflation and higher interest rates thus wiping out income gains under the previous administration, according to data compiled by the Heritage Foundation.
Experts at the conservative think tank analyzed consumer prices data and the Federal Reserve’s interest rates and found in a Friday report that Americans have lost the equivalent of $4,200 of income per capita since January 20, 2021.
Consumer prices have risen 12.7% since January 2021, much faster than wages, which Heritage analysts say has cost the average American worker $3,000 in annual purchasing power.
Additionally, the tightening monetary policy by the Federal Reserve and increased borrowing costs on mortgages, vehicle loans and credit cards – caused by higher interest rates – have reduced the average American’s purchasing power by another $1,200 per year, Heritage Foundation says.
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