By Alex Hammer and Stephen M Lepore
Inflation has stolen an average of 25 percent — at least $2.1 trillion — from America’s 401,000 workers, despite President Joe Biden’s insistence on Sunday that the “economy is bloody strong.”
The analysis was conducted by conservative economists Stephen Moore and EJ Antoni, who said the balance of Americans’ 401k “is going to ruin the whole day, week, month.”
Moore and Antoni note that inflation has hovered at 8 percent over the past seven months, despite claims by the White House that things are temporary.
They argued that the average American family lost nearly $6,000 in “purchasing power” over the past 20 months due to the rise in prices versus wages.
The average American’s 401,000 plans have lost a whopping $34,000 — more than 25 percent of what they were a year ago — for a total of $2.1 trillion in losses.
The average American’s 401,000 plans have lost a whopping $34,000 — more than 25 percent of what they were a year ago — for a total of $2.1 trillion in losses
The average American’s monthly savings have fallen 83 percent since Biden took office in January 2021, and they write, “Many millions of Americans living paycheck to paycheck simply don’t have the cash after paying the inflated bills by a lot.” to save.”
To make matters worse, they write in the New York Post that the stock market has depleted Americans’ savings even further, with the Dow Jones and S&P 500 both down 6 percent recently, and the NASDAQ down 18 percent.
Year-to-date, the Dow Jones is down 19 percent, the S&P is down 25 percent and the NASDAQ is down 34 percent.
Moore and Antoni argue that inflation cuts those stock losses by another 13 percent and hurts bond yields as well.
US pension funds are down 15 percent, from $27.8 trillion at the start of the year to $24 trillion.
Moore and Antoni write: “The victims of ever-increasing prices in the store and at the pump are not the millionaires but the little guys – and especially older Americans – whose paychecks and savings accounts are being beaten up.”
It comes after Biden was caught on camera telling a reporter in Portland that the “economy is strong as hell” – while licking a Baskin Robbins ice cream cone.
The president appeared unperturbed by the country’s 8.2 percent inflation rate and warnings of an impending recession when asked about America’s financial situation at an ice cream parlor in Oregon on Saturday.
When asked if he was concerned about the strength of the US dollar amid rising inflation, the President, holding a chocolate chip cone, flippantly replied, “I’m not worried about the strength of the dollar. I’m worried about the rest of the world. Our economy is damn strong.’
The US dollar serves largely as a safe haven asset, drawing inflows in times of uncertainty – meaning it will often rise in times of economic turmoil while others, such as the pound and the euro, fall.
That sentiment didn’t escape the notice of several pundits and political observers watching the clip, which has been widely shared since it was taken Sunday afternoon during the head of state’s visit to the notoriously liberal city to herald the Democratic Party’s recent legislative gains in healthcare.
The bizarre interaction has since gone viral, being shared thousands of times just a day after Biden, 79, was criticized by Republicans for telling a young teenage girl in California — much to her apparent discomfort — in an interaction that it was also listed as having given unsolicited dating advice.
The altercations, along with a litany of other gaffes in recent months, have subjected Biden to political attacks over his age as well as accusations that the president has failed to address the current economic turmoil that has fueled inflation rates and Americans’ expenses . of-living sees an even worse surge.
The recorded altercation further led the president – who fell for a second time in May while crossing the steps of Air Force One – to downplay the country’s current inflation rate, which shot to a 41-year high in the summer.
Speaking to the reporter while still clutching the cone, Biden claimed that “inflation is global,” adding that “it’s worse [in other countries] than it is in the United States.’
The President explained: “The problem is the lack of economic growth and sound politics in other countries – not so much in ours.”
That statement came just days after the Commerce Department said the consumer price index was 8.2 percent higher than a year ago – it was barely down from last month’s 8.3 percent, with core inflation showing the current rate taking into account rampant energy and food costs, is up 6.6 percent.
Rents and other basic necessities have also risen sharply in recent months under Biden’s administration — incidents the president mentioned during his de facto ice cream social, which took place during a scheduled visit to Democrat Kotek in Oregon’s tight race for governor to strengthen, did not seem to notice.
The president ended his western swing in Portland over the weekend, where Republicans believe they can wrest control of the deep blue state from Democrats for the first time in 40 years.
A mix of high crime, homelessness, and an unrelated spoiler candidate surprisingly propelled GOP contestant Christine Drazan into first place.
Several conservatives poked fun at the president’s controversial claims and subsequent preference for the frozen snack during a photo op with over-progressive Portland gubernatorial nominee Tina Kotek (right). Rents and other basic necessities have also risen sharply in recent months under Biden’s administration — incidents the president mentioned during his de facto ice cream social, which took place during a scheduled visit to Democrat Kotek in Oregon’s tight race for governor to strengthen, also did not seem to notice
During that visit to the Baskin Robins — which Kotek also attended — Biden displayed even more questionable behavior when he seemingly went in to smell a female patron’s hair after introducing himself to her and the woman’s apparently infant daughter.
A viewer captured video of the strange incident, which was reminiscent of several other high-profile incidents of the president getting close to a woman to get a flick of her mane, the most recent of which happened as recently as last Saturday in LA.
Meanwhile, the US dollar’s precipitous rise — which comes with a post-pandemic financial crisis unseen in decades — is having an impact on other currencies like the pound-euro, both of which fell below par for the first time in decades this month. It was the GBP’s first time falling below the US greenback.
The falling value of currencies — as well as other currencies around the world, including the yen and won — adds another worrying element given the current economic uncertainty in countries around the world trying to recoup losses sustained during the pandemic .
Additionally, the US dollar largely serves as a safe-haven asset, seeing inflows during uncertain times – meaning it will often rise during times of economic turmoil while other currencies fall.
In Asia-Pacific, the currencies of Japan, South Korea and China weakened against the dollar, while the Australian dollar was mostly flat.
The Japanese yen traded at 144 against the dollar, weaker by comparison after the country’s federal government intervened in the foreign exchange market last week.
South Korea’s won, meanwhile, was near 2009 levels at 1,428.52 per dollar on Monday.
That being said, the UK economic outlook means the pound is suffering more than most amid a catastrophic energy crisis and the highest inflation among the G7 countries.
The previous record low for the British pound against the US dollar was 37 years ago on February 25, 1985 when 1 pound was worth $1.054.
The US and UK – as well as other countries like Canada – are consequently battling rampant inflation seen as the world struggles to recover from the pandemic, with the UK at 9.9 percent in August 2022 and the US at 8 .2 percent – both slightly below the record highs of the previous months.
That said, the prices of just about everything else have risen sharply over the past year, with groceries, electricity and vehicles up well over 10 percent compared to last year around this time.
Meanwhile, the rise for conveniences like gas and airfare is even more noticeable – gas is now more than 25 percent from its October 2021 price and airline tickets are up more than a third.
Biden, meanwhile, has insisted there is nothing to worry about when it comes to America’s economy, even claiming he plans to run for re-election while pushing other progressives like Kotek into states at risk of rising Fed up with homelessness and crime.
The president’s current approval rating is well below 50 percent — one of the lowest in recent history.