Government Watch / Politics

Democrats Spend Low-Income Americans Into Poverty


I have been writing for years about how progressive policies championed by the Democratic Party and served up under the guise of caring about low-income Americans wind up hurting these very communities.

The latest chapter in this saga is the newly unleashed round of inflation, the worst our country has seen in 40 years.

Two important points here are that first, we can lay responsibility for this inflation directly at the doorstep of the Biden administration, and second, those being hurt most by this inflation are the very low-income Americans that this administration claims to care so much about.

A recent report from the Federal Reserve Bank of Minneapolis focuses on the disparate impact of inflation on different communities, causing the most damage to low-income Americans.

According to the report, although one number for inflation is reported nationally, different households do not equally take the brunt of this.

According to a Gallup survey from late 2021, 45.5% of all Americans reported experiencing “severe” or “moderate” hardship caused by inflation.

However, the story changes dramatically when broken down by income. Among those with incomes of less than $40,000, 70.7% say they are experiencing “severe” or “moderate” hardship. And 46.5% of those earning from $40,000 to $99,999 and 28.3% of those earning $100,000 or above reported experiencing “severe” or “moderate” hardship.

The report offers various explanations about why inflation hits lower-income households harder. These include the fact that lower-income households have a lower percentage of interest-bearing assets, meaning their world is mostly cash. And inflation takes its highest toll on cash.

Higher-income households have more flexibility in adjusting behavior than do lower-income households. And lower-income households tend to be renters rather than homeowners, and rent is more volatile in an inflationary environment.

The tragedy is that inflation is not a surprise attack. We know what causes inflation. Like many physical diseases, we know what their causes are, and those that become victims do so not out of lack of knowledge, but out of irresponsible behavior.

Despite the fact that we know the damage that smoking causes, or excessive drinking, or improper diet, people still do it.

We know that inflation is caused by pouring excessive money into the economy. If today an apple costs $1, and tomorrow the government prints another dollar, without producing another apple, the price of an apple will jump to $2.

Economists were widely reporting that the Biden administration was spending too much money and that this profligate spending was being enabled by the Federal Reserve.

Harvard economist and former Treasury Secretary Lawrence Summers wrote in The Washington Post last May, almost a year ago, “The inflation risk is real,” noting that the problem is “overheating, and not excessive slack.”

This in the wake of the Biden administration’s $1.9 trillion relief spending and the beginning of trying to pass the $4 trillion Build Back Better program, stopped by the courageous renegade senator from West Virginia, Joe Manchin.

Meanwhile, the Federal Reserve, under the leadership of chairman Jerome Powell, in its statement at the end of last April, was still predicting 2% inflation and calling the current jump in prices “transitory.”

In July of 2021, economists Steve Hanke of Johns Hopkins University and John Greenwood of Invesco predicted in The Wall Street Journal that, “By the end of the year, the year-over-year inflation rate will be at least 6% and possibly as high as 9%.” It reached 7.9%.

Yet, in November, President Joe Biden renominated Powell to a second term as Federal Reserve chairman, despite his gross mismanagement that led to the inflation we are now experiencing. Biden, in his statement, praised Powell for his “decisive action” and “steady leadership.”

Low-income Americans trying to stay above water in this new flood of inflation are probably less grateful to Biden and Powell for this so-called leadership.

Star Parker is president of the Center for Urban Renewal and Education and host of the weekly television show “Cure America with Star Parker.”


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1 year ago

The plan is simple, destroy the middle class and make them wards of the state for their basic needs of food, shelter and healthcare. An admin that promotes moral decay in society for votes! Power and greed the two driving forces.

R Davis
1 year ago

In addition to inflation we now have the possibility of digital dollars where the government can control how a person spends his money. This is happening in some other countries apparently. As I understand it the plan is to do away with cash and everyone will have their banks accounts changed to digital currency which the government will control. If you use a credit card or debit card when you shop now the process will probably seem the same except it is possible for those in control to tell you how you can spend your finances.

1 year ago
Reply to  R Davis

The digital dollar possibility you describe is one very needful option for government if it comes to be. In order to enforce the governmental control on citizens freedom, it needs away to dig into their pockets in such a way that they cannot complain. But that also needs a pretty good control on voting outcomes to make it work in a way that most citizens aren’t aware of how they are being gyped by the politicos. In the last POTUS the DemocRats pretty well showed how they can rig elections .. and the news media in the majority was relatively mute on pointing it out.

1 year ago
Reply to  Hal

Is the plan to wipe/erase the 30 trillion debt as old currency and begins a new currency for the rich leaving everyone else behind?

1 year ago

I never thought I was “low income” until now. I get less than $28,000 a year, but somehow became burdened with credit card debt with 24.99% or more interest. Where are our Congress people now? Americans will NEVER get out of debt with this rate of interest. We need a cap on interest as well as term limits! I don’t spend money foolishly but had to buy a new washer and dryer (the home warranty company refused to pay to replace it because it was rusted, one of their selling points that they WILL do) and my 30-year-old car’s engine failed so I had to get another car or fix this one. Add to that medical bills, some of which were caused by a fall at a neighbor’s and the hospital and doctor bills were over $200,000, for which their insurance company offered me $500.00. It doesn’t take much for a senior citizen to fall behind, let alone those with families. Even so, I have too much income to acquire any assistance so I pay all my bills from my income. Doesn’t leave much left for emergencies or even clothing and groceries.

I thought autopay was a good way to make certain all my bills were paid on time. Then the utility companies decided to take more out than was owed and I’ve spent months trying to get my money refunded or credited and late fees removed. A credit card company also charged me over $30.00 in “residual” interest because the loan company I obtained a loan from didn’t pay the entire amount, leaving $.36 as the balance. A second card, which I personally paid in full, was charged “residual” interest, as well, because the account was paid in full, but a $20.00 charge came in after that. So they charged me over $7.00 in interest. They refuse to waive the interest fees, even though both cards were paid in full long before the due date, I’ve contacted the Consumers’ Federal Protection Agency and they, apparently, are going to honor the credit cards’ demands. I’ve informed them I am NOT paying these excessive fees. I’m too old to worry about my credit report (which is 735 at the moment), and the credit bureaus are always reporting it less than it really is anyway.

Basically, the credit industry, the big Pharms, and the insurance companies have us over a barrel. If we had the overcharges they are piling on us and getting filthy rich from, we could all live comfortably. Even States’ lotteries are a rip-off. They don’t give the education systems nearly the amount of money they represented they would when selling the lottery to us. There is NO WAY one individual (or two or three) should be given millions of dollars. There should be a cap on the lotteries, with the remainder going to infrastructure, education, affordable housing, and helping those less fortunate (who will work to earn it if healthy enough to).

Natasha Howard
1 year ago
Reply to  Lindsey1964

how about 12.000 a year.. im the bottom of bucket here. and its going to get worse.

David Millikan
1 year ago

This is TREASON.
Now to add insult to injury DICTATOR Beijing biden wants to bring in NEW WORLD ORDER.
That means 1 Government, 1 Bank (Executive Orders signed),
1 Religion (THEIRS, NOT YOURS). Even the Wuhan Health Org is Writing an INTERNATIONAL PANDEMIC VACCINE MANDATE so that countries that DON’T COMPLY ENFORCING THEIR FASCIST MANDATES WILL BE PUNISHED. This is of course blessed by DICTATOR Beijing biden with AOC, SWAMP QUEEN pelosi and the rest of the SOCIALIST/COMMUNIST party.
Naturally, the FASCIST liberals ALWAYS CRY WOLF and the public falls for it instead of THINKING FOR THEMSELVES. That’s EXACTLY what they want.

Casey C Matt
1 year ago

“They” say inflation is higher than it has been in 40 some odd years……what they dont say is that they have altered the way the amount of inflation is measured……..if it were by the standards of 40 years ago inflation would show double digits…….higher than it has been in perhaps…….ever.
Lies lies and more lies. I wish they could, like me experience being on the older side of life and living on a modest fixed income….trying just to eat…..where property taxes will come from is way beyond me.

1 year ago
Reply to  Casey C Matt

It’s got to the point that data coming out of government sources is watered down to make it more palatable for the citizens to swallow the data. And the majority media seems increasingly to look away from the truth and accuracy of government data.

1 year ago

Their goal is to destroy the middle class and make them wards of the state for their basic needs. Food, shelter and housing. All about power and greed.Not about enhancing Americas greatness but destroying the middle class foundation and the upward mobility possible through hard work and perseverance. The only roadblock to success under the umbrella of freedom, are the roadblocks we place in our mind. This admin is intent on destroying that foundation! You did not build that come to mind?

1 year ago

Birds of a(n incompetent) feather flock together. This administration has so many feckless cabinet leaders that it’s a wonder we haven’t yet collapsed into full-throttle recession.

Waiting too long to raise interest rates (before inflation leaps to nearly double-digit rates), delaying doing something in Ukraine (this country and Russia supply 1/3 of the world’s wheat supply; pick up that extra loaf of bread or buy the flour and make it yourself), the head of the energy department not knowing how much oil we use each day, The Secretary of Transportation Butagieg (sp?) who disappeared for months and no one missed him… It’s one disaster after another, all across this administration.

And then we have the Incompetent-In-Chief who can’t get anything right! If biden thinks low- and middle-income populations will shower him with gratitude for expanded medicaid, free college, debt forgiveness, rent and food assistance, just wait until our tax rates go even higher to pay for all this crap. There will be a revolt. Impeachment is sounding better every day, even if that means putting the Cackle Monster into the president’s seat. It can’t get much worse than it is now. Common sense has flown the coop.

1 year ago

This is what Socialists call economic and social justice. The goal is to reduce everyone, except the small group of ruling elite, to abject poverty and complete misery. Nothing being done by the Democrats is new in any way. The exact same policies were implemented in virtually every other country that ever adopted socialism with identical results. Americans are just now getting to begin experiencing what living under socialism means. It will only get much, much worse as time passes and more “progressive” policies are implemented here. Elections have consequences. It only take one bad election to plunge a country into ruin. Ask the people of Argentina, Venezuela, Zimbabwe and the other socialist Utopias how things played out after they made their voting mistakes.

1 year ago

Remember…. inflation of US currency is just a way to raise tax income and fool most of the citizens that inflation is mostly the result of events and things outside the influence of government. And it means that the government will take care of its political supporters as a priority, especially if it is in control of the DemocRats.

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