AMAC Exclusive – By Seamus Brennan
With inflation at its highest rate in four decades, it’s easy to understand why the economy remains the top concern for American voters in advance of next week’s midterm elections. After all, Americans gained thousands of dollars just several years ago under the Trump administration—but are now suffering an enormous pay cut under the inflationary policies of the Biden White House.
Perhaps no statistic captures the stark difference in Americans’ economic fortunes under President Biden compared to President Trump better than the purchasing power of workers’ wages. Under President Trump, between 2017 and 2019, Americans received a whopping $5,237 increase in real median income and a $6,603 increase in median family income—suggesting that Trump administration policies led to historic economic gains for American families. Under Joe Biden, however, families have lost on average $6,000 in purchasing power—a staggering figure that lays bare just how devastating Biden’s policies have been for everyday Americans.
According to a sobering analysis from renowned economists Stephen Moore and E.J. Antoni, “over the past 20 months, [the] rise in consumer prices over wages means that the average family in America has lost nearly $6,000 in purchasing power”—a figure that is likely to grow in the months ahead. “It’s not exactly the same as a bank robber with a gun stealing a quarter of the money in your bank account,” Moore continued. “But at the end of the day, Bidenflation has had the exact same unhappy result.” Moore and Antoni further found that the average 401(k) plan is down $34,000 in less than one year – a more than 25 percent decrease and a devastating hit to Americans’ retirement savings.
Under Biden, consumer confidence has also plummeted to remarkable lows: the consumer confidence index in September 2022 hit 96.7—a huge difference from four years ago in September 2018, when it reached a 101.5, nearly the highest number recorded since 2004. Likewise, under Trump, the average 401(k) rose to $112,300—an all-time record. Under Biden, the average 401(k) account is down to roughly $101,000, and that’s with 8 percent inflation.
In a recent interview with AMAC Newsline, Casey Mulligan, former Chief Economist for the Council of Economic Advisors under President Trump and one of the nation’s leading economists, explained the reasons for some of these dramatic shifts in economic trajectory. Biden, Mulligan said, “created a lot of government dependence in his first year… he was handing out those big unemployment benefits and other government paychecks—and that was very disruptive.” Mulligan also pointed to the administration’s draconian COVID mask and vaccine mandates as a source for economic disruption: “It’s one thing to compete against the government’s tax, and then the government’s telling you that you have to fire people who didn’t get the shot.”
But Biden’s economic missteps extend far beyond the spheres of government dependency and COVID mandates. The current administration’s regulations, Mulligan said, have marked a “180-degree [difference] from Trump…businesses got a lot more government rules they have to follow—and that makes them less productive. So, Biden’s kind of holding back the workers—and then the workers we did have, he made them less productive.”
“Inflation is a symptom of that,” Mulligan continued, “and it’s one that people see easily, so I understand why they focus on it. It’s more a symptom of a deeper cause. [Biden has] put us in a position where we can’t even do some of the things that we were able to do in the Trump administration—like pumping oil, and things like that.” Mulligan also pointed to the expiration of certain provisions of Trump’s 2017 tax cuts as a cause for the faltering economy. “If Trump were here, he’d be renewing them, but… Biden’s letting them expire,” which is leading to a “bigger tax liability” for American businesses.
Mulligan also noted some of the ways in which Biden is seeking to prolong the disincentive to work—including Obamacare expansions, which Biden has made permanent through the so-called Inflation Reduction Act. “I’m not sure if you’ve noticed, but the people on food stamps got a 12.5 percent raise this month—so the inflation kind of gives an automatic raise to people on government programs, but of course those of us who work don’t get an automatic raise… so we’re pumping up the benefits lifestyle, if you will, and not pumping up the working lifestyle.” This phenomenon, he continued, amounts to “a new hit our economy is taking. And I think we’re going to see the employment rates come down—and it’s going to be a tougher labor market than we’ve seen so far because of that.”
When asked if the Biden administration is taking any meaningful efforts to arrest inflation, Mulligan said that Biden’s reappointment of Jerome Powell as the chair of the Federal Reserve suggests that, as long as Biden remains in office, inflation will likely continue to hang over the heads of American families. Biden simply “doesn’t know what he’s doing,” he said—pointing to his elevation of figures like Janet Yellen as Treasury Secretary, who for years has insisted she had seen no signs of recession.
The quickest way to reduce inflation, Mulligan continued, comes down to the Federal Reserve: “You’ve got to have a good Fed chair,” which is a presidentially appointed position. “Part of having a good Fed chair is not just finding a great guy out there, but giving them incentives so they should be punished when they don’t do a good job.”
Looking back on the Trump years, Mulligan shared that he’s recently been awakened to how much Trump’s deregulatory policies “reduced dependence on government.” And now, he continued, “when I see things going in the other direction, you can really see how that works… Now, we’ve got the opposite. Workers are getting pay cuts and people on benefits are getting a raise—so that feedback from the economy to government dependence has become more visible now.”
The contrast between the rock-bottom economy under Biden and the booming economic conditions of the Trump administration just several years ago could not be starker.
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The title of this article is really all you need to read isn’t it?
A $34k loss in 401s? I must be on the bad end my 401 is down $72k and sliding. Yes I’ll get an 8% raise in Social Security but food is up 14% and gas is up 26%. Couple that inflation with a $72K loss in 401 ang I am headed for a 3rd world lifestyle. I send letters to my Senators = warnock and osscoff – and if I do get a reply it’s about some bill that will help in future. I won’t even go into what biden and demoncrats have done to our military or about how biden was going to heal our country
I hope that article is right in that a good Fed Chair can tame this inflation. And today Fed added another 3/4 increase . History indicates that Fed increased rates to around 16% & that worked in early 1980s. But the Fed rate was only about 2-3% at the start of this inflationary cycle….do it remains to be seen how much in needed in 2022 to have a soft landing. And this round of inflation is worldwide & not just in US at this time. But Biden’s war on fossil fuels has certainly not helped inflation in this country, and my big worry is that many Americans will really see this on energy bills this winter. In my opinion, that is one area that Biden could have helped stop a little inflation increase in America, but he will still not back off of his war on fossil fuels. Democrats will pay for this decision at the polls next week.
I’m on a fixed income a receive a combination of social security and a partial Veterans disability pension and it only amounts to around 1300 a month because part of my life I was homeless and other times worked for cash under the table. I’m 75 years old and live in subsidized housing and when Trump was president I was living minimally abnd yet comfortably and was able to put a little money in my savings every month
But under Biden, I’ve cut expenses to the bone, I can’t afford any extras, which means no more eating at restaurants or even Pizza places of fast food places because those costs have doubled, and can’t afford to drive anywhere except to the market and to medical appointments and last year I had to get new dentures and a new set of tires on my car. And now I’m just at the point now where my monthly expenses do not yet exced my monthl income but I’m no longer able to put anything more into my savings. soon I will need my savings just to get by and if there’s another 4 years of Biden or some other socialist sock puppet I will have no savings left.
And I’m very aware of what’s going on in politics and after the election, gas prices are going go up because there will be no more petroleum reserve to artificially keep fuel prices down and Biden made a deal with the Arabs to keep oil prices down until AFTER the election, so after the election there will be fuel shortages and the cost of transporting goods will go up and so will the cost of everything else
Cash UNDER the table. That is a great part of YOUR problem-as it SHOULD be. How much of the “cash” under the table did you report to the IRS and pay taxes on? I’ll make it easy for you—NONE. Now you are reaping that which YOU have sown.
It’s everything-voter fraud. rampant crime in our cities committed by Negroes, abortion on demand, chaos at the border, no wall, fracking, opposition to voter ID and immigration enforcement, threats to justices on the court, censorship-all the hallmarks of a morally and intellectually bankrupt party.
Fred, I don’t think you can lay all the crime in big cities at the feet of blacks. That is too simplistic and unreal. I don’t think crime has a race. But we do have an open border, we have courts failing to prosecute criminals and we have jails being emptied through some crazy law forgiving certain crimes. Your comment could be considered highly inflammatory. Consider your verbiage.
Corruption at its finest! Obama is no longer the worst President the USA has had. The big guy, JB is definitely number one. JB, his staff and the lefty Congress has done everything to dismantle our great country by undermining our Constitution. They continue to lie to the American people and just keep writing blank checks, after all they are not paying for anything, We are! Perhaps the FBI should look into the Big Guy’s finances and track the monies from China & Russia throughout himself and his crime family. In addition, the FBI & Supreme Court may want to look into why JB is not enforcing our Immigration Laws. Now there is a job for you. Such corruption. Who can have any confidence in this scam corrupt government.
Comrade obama is still running the show. Senile Joe is an demented old fool that rubber stamps all of obama’s “fundamental change” One guy who’s happy is Jimmy Carter. Now #3 on the worst president ever matric.
That is exactly why Obammie is glad that JB came along!!
It is obvious that progressives dislike and distrust business and believe enjoying the profits of starting a successful business to be immoral. Regulations hurt small business more than large. Low profit margins and sporadic cash flow are hallmarks of startups. Adding the increasing costs associated with a rapidly rising burden of regulatory requirements dramatically impacts new businesses. Large corporations can absorb those costs relatively easily. Democrats prevent real competition in the market by suppressing small businesses in favor of their well healed large competitors. If you want to jump start the economy make it easier, faster and less expensive to start up a new company. You want to choke down the economy, increase prices and limit choices keep crushing the startups in favor of the mega corporations.
The Federal Reserve just announced another interest rate hike (.75%), so the stock market fell hundreds of points. Wells Fargo’s new loans decreased 90% and they announced big job cuts. This spells disaster for the real estate market with mortgage rates way up. Sellers have been reducing their asking price for months now, anticipating a repeat of the Great Recession.
Will big box stores continue paying cashiers $16-18/hour? I doubt it. Even Walmart has seen decreases in profits since the pandemic, partly because they’ve had to increase compensation in order to hire employees and because of their cost increases. My crystal ball foretells massive layoffs and some really dire economic conditions, so brace yourselves.
I hope every single one of us will remember this when we vote on Tuesday. This is what happens when we vote incompetent fools into office.
Apparently they didn’t remember in NY, Mich. or Penns!
Who is going to pay for all the people invading our Southern Border ? YOU ARE………
In my 70+ years, never imagined one of the two main political party’s in America would NOT want America to be great, never!
We who love our freedoms and opportunities Constitutional Republic promote MAGA, MAKE AMERICA GREAT AGAIN. It’s what pro-Republic, America-loving Trump campaigned on, and won on, after eight corrupt, traitorous years of America-hating (communist and Muslim-raised) Obama.
Today, after ginormous fraud, the resurrection of Obama’s regressive and destructive policies via the installed, not legally elected, fraud puppet, are back – on steroids. Add in alphabet agencies corrupted and weaponized, a Congress chock full of traitors, and 97% media outlets on the side of evil spewing their propaganda 24/7, all determined to destroy us and the Constitution that protects us.
So yes, MAGA is back, because the traitors are back. We MUST drain the swamp and save our nation, again. We MUST vote the Communist Democrats OUT! If the expletive traitors are able to cheat again we will soon be Amerikazuela, and that is NOT an exaggeration, the Republic hangs by a thread!
There’s nothing worse than a President that continually lies, and Biden is the commander in Chief of lying!!! The Dems have always lied but recently they have made it into an art form, constantly blowing smoke up our preverbal dress and gaslighting us on everything they have done wrong. Please remember when you vote on the 8th what the Dems have done to us all in just the last 2 years, and the loss of $6,000 is just one of the many things Biden and Dems have taken away from us, like our most important God given right to freedom!
Raggedy Ann (Psaki) let it slip in an interview she received her orders from Nairobi Obie (Obama).
Mulligan said as long as Biden remains in office, inflation will likely continue… Biden simply “doesn’t know what he’s doing…”
The corrupt, pedo, Alzheimer’s declining fraud puppet is clueless to be sure, but the coup traitors pulling his puppet strings know EXACTLY what their figurehead useful idiot’s doing: destroying our freedoms/opportunities Constitutional Republic! Myriad destructive bald face lies/policies/regs/EOs (so many downright illegal!), we’re on the precipice…the Republic is hanging by a thread.
Some people give with the left hand while stealing with the right, but Democrats steal with both hands behind their back.
Sadly, way to many people need to have this happen to them. They need to watch the family starve, be cold, maybe become homeless in order to understand the economics of America at this point in time. God help them…
It WILL get WORSE with DICTATOR Beijing biden and FASCIST liberals leading the way and smiling the whole time saying everything is just fine.
What they haven’t told you is that SPYING on YOU and YOUR Bank Accounts is to make sure you are BANKRUPTED.
What Trump giveth, Biden taketh away.
Elections have consequences. People may not like to hrear that, but that is the truth. If you elect a strong capitalist, who understands what drives the economy, you get prosperity. If you elect a demented puppet controlled by a merry band of Obama’s socialist comrades, you get very bad economic outcomes. Socialists are NOT about creating general prosperity and opportunity to succeed for the masses. They are about consolidating political power, wealth and control in their hands in order to rule over the masses. The masses generally suffer under socialist rule, which is starting to dawn on some of the sheep who voted for the puppet and his party.
Love reading your insightful, common sense comments of truth PaulE, more please.
Subjugated not successful masses are the aim of socialism