The Heritage Foundation released an analysis that found Americans have lost $4,000 in annual income, due to out-of-control inflation that has occurred during the Biden administration.
When Biden took office, inflation was at 1.4%.
The report said, “Consumer prices have risen 12.7% since January 2021, significantly faster than wages, so that the average American worker has lost $3,000 in annual purchasing power. Further, as the Federal Reserve implements tighter monetary policy to reduce inflation, interest rates are rising. Higher rates have in turn increased borrowing costs on mortgages, vehicle loans, credit cards, and more. The higher interest rates and borrowing costs have effectively reduced the average American’s purchasing power by another $1,200 on an annualized basis.”
The paper cites EJ Antoni, a research fellow at Heritage Foundation’s Center for Data Analysis, “Simply put, working Americans are $4,200 poorer today than when Biden took office.”
Antoni went on to say, “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. Washington recklessly spent trillions of dollars it did not have and paid for it with newly printed money, causing rampant inflation that has destroyed people’s purchasing power and jeopardized Americans’ financial futures.”
In a report released by he Congressional Budget Office, inflation and rising interest rates impact he middle class than other classes.