Experts at Moody’s Analytics estimate that American families are paying at least an additional $250 every month to keep up with higher prices due to Bidenflation, with prices rising to the highest levels in 40 years. Lower-income Americans are being hit particularly hard.
A study from Wells Fargo also notes that low- and middle-income households are burdened disproportionately by inflation.
- “Lower-earning households devote the biggest share of their budgets to rent, which means they probably are experiencing much higher inflation.”
- “Middle-class households were squeezed harder than other groups, with prices up 6.7 percent in December. That is 0.5 percentage points higher than for the lowest and highest income brackets. Transportation costs proved decisive here: Middle-class households spend a bigger share of their budgets than others on gasoline—its price was up nearly 50 percent in December—and used vehicles.”
- “Hispanic or Latino households faced inflation of 7.1 percent, thanks again to a disproportionately large share of spending on used autos and gasoline.”
- “Those ages 35-44 saw their costs rise 6.9 percent in 2021, higher than any other age group, though the rate for younger age groups was just slightly less.”
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- President Biden claims that inflation has peaked, dismissing it as “transitory” and a “high class problem,” but it’s clear that inflation is only continuing to rise and hits poor and middle-income Americans the hardest.
- The Congressional Budget Office (CBO) and the Penn Wharton Budget Model have also estimated that President Biden’s inflation tax costs the typical family $5,000 a year, and hits the middle class and those just starting their career or families the hardest.
- With more than 60 percent of Main Street businesses reporting they were forced to raise their prices to keep up with inflation, which has reached the highest rate since 1982, economists are warning the U.S. is at risk of a wage-price spiral.
- For working Americans, in one year, Democrats wiped out three years of wage gains through inflation.