According to Bloomberg, President Joe Biden’s 40-year-high inflation will cost American households an extra $5,200 in 2022, or $433 each month.
For the past four decades, Americans haven’t had to worry about adding inflation into their budgets but that seems to change this year.
Though the magazine promised that wage growth would offset the cost of pricey inflation, wages have not kept pace with inflation, allowing inflation to rip through the pockets of American workers:
Excess savings from the pandemic, will cushion those costs, allowing spending to grow at a reasonable pace this year. However, when savings are depleted faster, many who have been on the sidelines may feel compelled to join the workforce, and the resulting rise in labor supply would likely reduce wage increases.
The US Bureau of Labor Statistics reported on March 10 that inflation-adjusted average hourly wages for all employees fell 0.8 percent from January to February, seasonally adjusted. Inflation-adjusted average hourly wages are down 2.6 percent from a year ago.
According to a consumer sentiment poll conducted by the University of Michigan, 32% of Americans expect their financial situation to worsen in 2022, owing to inflation. Only 16% of Americans believe Biden’s proposals would solve the country’s economic woes.
“This will make battling inflation more difficult because so much of inflation is based on psychology and expectations,” according to Breitbart News.
Inflation has thrown Biden’s political world into disarray. NBC News polling on Sunday found that 71 percent of Americans believe Biden’s America is moving in the wrong way, even though he had mostly positive polling when he first took office. Only 22% believe the country is moving in the right way.
Additionally, according to a recent Associated Press-NORC poll, approximately seven out of ten Americans believe Biden’s economy is “in horrible health.”
Biden’s handling of the economy has nearly two-thirds of Americans disapproving, And a majority of Americans believe his policies have harmed rather than benefited the economy.