Despite President Biden’s claims of progress and decreasing inflation rates, a staggering majority of Americans are feeling the pinch in their wallets. A recent Gallup survey revealed that a whopping 61% of respondents admitted that rising prices have caused financial hardship for their households. And the numbers keep climbing: from 56% in August 2022 to 49% in January 2022, and 45% in November 2021.
To make matters worse, 15% of respondents reported severe hardship, struggling to maintain a consistent standard of living due to the relentless inflation. As expected, lower-income Americans bear the brunt of this crisis, facing even greater challenges than their wealthier counterparts.
In yet another Gallup survey, it was found that the “high cost of living” is the top financial concern for American families. A staggering 35% of respondents pointed to inflation as the most pressing issue, with 11% citing the exorbitant costs of homeownership or renting, 9% grappling with excessive debt, and 7% lamenting low wages.
Interestingly, while headline inflation dipped below 5% recently, the prices of essential goods like food and shelter continue to soar well above the overall inflation rate of 5%. The Federal Reserve’s response has been to increase the federal funds rate, making borrowing more expensive for consumers and businesses. This may slow down inflation, but it also dampens economic activity, leaving Americans in a bind.
President Biden’s attempts to take credit for the somewhat reduced inflation levels have faced intense criticism. Despite claiming progress, current inflation rates remain three to four times higher than pre-Biden levels and more than double the Federal Reserve’s benchmark of 2%. His policies, including the Bipartisan Infrastructure Law and the Inflation Reduction Act, have yet to alleviate the burden on everyday Americans.
While the White House and its press secretary, Karine Jean-Pierre, try to deflect blame onto House Republicans and promote their energy policies, the reality on the ground tells a different story. Americans are still grappling with higher prices at the pump, even if there has been a slight decline from last summer. As the inflation crisis persists, the administration’s attempts to downplay the severity only add insult to injury for hardworking families.
