Many of the traditional milestones of America’s middle class are increasingly out of reach under the Biden-Harris administration, as high costs and extensive regulations burden average people. .
The paper calculates that since January 2021, when President Joe Biden and Vice President Kamala Harris first took office, the cost of buying a home, buying a car or caring for a child has taken more than the average American’s take-home pay. has increased explosively compared to Caller News Foundation. Experts told DCNF that sky-high inflation under the Biden-Harris administration has eroded the purchasing power of America’s middle class, and that high interest rates and government intervention are further squeezing the cost of daily living.
“Since January 2021, the American middle class has been in a dire situation,” Peter Earle, senior economist at the National Bureau of Economic Research, told DCNF. “They are experiencing the worst inflation in more than 40 years, and interest rates are the highest in more than a decade. Not only has inflation taken away purchasing power, but shrinkflation has reduced the size and quality of goods. has changed. Regulations are driving up costs and hindering employment. On top of that, they’ve been lied to over and over again, and the government has told them not to trust their eyes or their wallets, increasing their economic hardship. I have seen it happen.”
The traditional middle-class milestone of buying a home has become more elusive for American families in recent years, with the median home price rising from $357,100 in 2021 to $427,200 in July. It is said that it has increased. data From the National Association of Realtors. The standard payment for a median-priced home is currently 26.7% of household income as of July, but will rise to 16.9% in 2021.
Much of the cost increase is due to higher mortgage rates starting in 2021, which rose from 3.01% in 2021 to 6.93% as of July, according to NAR. Mortgage rates have risen to recent highs after the Federal Reserve significantly raised the federal funds rate in response to high inflation under the Biden-Harris administration.
LOS ANGELES, CA – SEPTEMBER 22: An “Open House” flag is raised outside a single-family home on September 22, 2022 in Los Angeles, California. In the U.S. housing market, home sales have slowed as the Federal Reserve (Fed) raised mortgage rates to combat inflation. (Photo by Alison Diener/Getty Images)
U.S. auto sales also remain below pre-pandemic levels as many Americans struggle to make car payments amid high prices and interest rates. The number of weeks of income it takes for the average household to buy a new car has increased by a full month under the Biden-Harris administration, up from 32.2 weeks a year ago. January 36.2 weeks as of 2021 septemberAccording to Cox Automotive data,
“Inflation has been an extreme problem during this administration, exacerbated at least in part by the American Rescue Plan passed early in the administration,” Duncan Blade, coalition director for American Compass, told DCNF. “Grocery store prices and gas station prices are definitely weakening the economic position of the average American family.”
Many parents are also dealing with increasingly high childcare costs, making it impossible for them to work to provide more cash for their families. Currently, parents must spend an average of $321 a week to enroll a child in day care. According to I completed the Care.com survey. In 2021, the average parent reported spending $226 per week on child care or day care centers. According to Take another Care.com survey.
Some Americans may also be turning away from pursuing higher education because costs remain high. Higher education was once seen as a way for individuals to improve their chances of employment and break into the middle class. The number of freshmen enrolling at public universities in 2024 will decrease by 8.5%. According to National Student Clearinghouse Research Center.
Prices have increased by about 20% since President Biden took office. According to In Federal Reserve Economic Data (FRED). Inflation will reach a peak of 9% in June 2022, while the cost to the average American of federal regulations will reach a record $2.1 trillion in 2023.
“Prices continue to rise, and they continue to rise faster than they have in decades,” Earle said. “In other words, while it is true that prices are not increasing at the annual rate of 9.1% as they were two summers ago, they are still increasing at a level exceeding (CPI) 3%. It’s becoming increasingly rare that the Biden administration and the US government have completely misrepresented the economic fortunes of most Americans. It is clear that
GAITHERSBURG, MD – APRIL 12: Aerial view of hundreds of used cars and trucks stored at a CarMax lot on April 12, 2022 in Gaithersburg, Maryland. Consumer prices rose 8.5% in the year to March 2022, the highest rate of inflation since 1981, with the U.S. average for a gallon of regular gasoline peaking at $4.33 on March 11. (Photo by Chip Somodevilla/Getty Images)
“I would be remiss if I didn’t talk about things like the Biden administration’s approach to economic policy,” Blade said. “Because they’re so wrapped up in these elite concerns, they don’t seem to be able to get anything done for the American people, as you can see in kind of their two major policies. One is the forgiveness of failed college loans, which clearly benefits wealthier Americans, and the second is electric vehicle mandates and tax credits. None of these policies seem to address or speak to the concerns of average Americans in any way. I think these two are great examples of how an administration that actually tries to respond to the needs of middle-class Americans is kind of out of line. ”
More than half of Americans (52%) say they and their families are worse off now than they were four years ago. According to The economy is a major concern for voters in the 2024 presidential election, with a majority saying they trust former President Donald Trump to steer the economy, according to a Gallup poll released Oct. 18. However, 45% of respondents said they had more confidence in Vice President Kamala Harris. According to According to a Gallup poll released on October 9th. (Related: Hispanic business owner wonders why Kamala Harris didn’t implement her ‘great ideas’ on inflation and the economy)
“At the end of the day, when the political speeches are over and the campaign promises are gone like morning dew, Americans are left with their families and the ability to support them,” Earl told DCNF. “And our ability to do so has been more impaired in the past three years than in previous decades.”
The White House did not respond to requests for comment from DCNF.
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