If you listen to the liberal media, the economy is better than it’s ever been. They like to spin “Bidenomics” as a good thing. However, if you’ve been watching your spending power in the grocery stores or noticing that your debt is growing, you know that the economy isn’t as healthy as many say that it is.
Long-term treasury yields are on the rise, and this is usually indicative of a recession. While we’re not there yet, we’re closing in on it.
The mortgage rates are also surging, making it harder for people to buy homes – and for those looking to move and sell their homes, it’s also a challenge. No one wants to partake in a mortgage if it means a 7.7% interest rate (or higher).
The savings that many built up during the COVID pandemic (remember when the government was just sending us money?) are dwindling, if not gone altogether. In fact, it’s being estimated by many economists that excess savings will be gone by the end of the month.
Bloomberg Economics has calculated that the “least wealthy 80% of workers now collectively have less cash on hand than they did when the pandemic started.”
Less cash on hand can also lead to excess debt on credit cards, foreclosures, vehicle repossessions, and more.
There are reasons why people are forced to reach for their savings. Inflation, higher rent costs, and higher interest rates are hitting households hard.
Higher-income households aren’t too dramatically affected because they save more than lower-income households.
On average, 3.9% of disposable income is being saved. That’s hardly enough to combat the rising costs in virtually every aspect of life.
Ultimately, all of this shows that we’re headed into a recession – and Bloomberg economists see it happening as soon as December.
When we look at the hard facts, it’s hard to believe that the Biden administration continues to insist that our economy is doing just fine.
We’ve had consecutive quarters of a downturned economy, and Biden has to stop blaming it on COVID at this point.
Perhaps putting an end to giving money to Ukraine and allowing illegal immigrants into the country would help, but for that to happen, we’d need a new (and conservative) president in office.