Joe Biden’s Presidency has been a disaster of epic proportions.
He’s delivered a huge punch in the gut to everyone.
Now Americans are facing one huge challenge that could spell doom for Joe Biden.
The cost of living is through the roof as the country grapples with lingering inflation and rising interest rates.
Americans are having a harder time than ever making ends meet under President Joe Biden.
And consumers are falling behind on paying debt at an alarming rate according to a report from the Federal Reserve Bank of New York.
Delinquency on debts that were being repaid, but were halted by consumers, surged during the third quarter of 2023 for every type of debt except for student loans.
Deteriorating economic conditions have left Americans unable to pay debts that they used to be able to according to experts.
Center for American Prosperity chief economist Michael Faulkender told the Daily Caller News Foundation that Americans have blown through their savings struggling to keep up with payments.
“Consumers pay for things three ways: income, savings, and credit,” Faulkender said. “We know that wages have not kept up with inflation over the last 2.5 years and that many households have spent all of the savings accumulated during the pandemic. Therefore, in order to maintain their spending levels, they have been adding to their credit card balances, such that aggregate balances have now eclipsed $1 trillion. Rising credit card debt in a rising interest rate environment with incomes not keeping pace will put more and more households into financial difficulty, resulting in delinquencies.”
Delinquencies for credit card and auto loans saw the biggest jump in the third quarter.
Credit card debt increased by 4.7% crossing the $1 trillion mark for the time in American history in the third quarter.
Struggling Americans are more frequently turning to credit cards to make ends meet.
Real wages for the average worker are down 2.1% since Biden took office in 2021.
That’s forcing workers to burn through their savings to pay their bills.
As a result, the total savings held by Americans has plummeted from nearly $6 trillion in April 2020 to $687.7 billion in September of this year.
“The rise in delinquencies is indicative of increasing strain on consumers,” American Institute for Economic Research economist Peter Earle told the Daily Caller News Foundation. “Over the past three-and-a-half years, we’ve had widespread unemployment, an uneven recovery, and then both the highest inflation and the most aggressive rate-hiking campaign in four decades. Inflation is still substantially elevated. Unemployment is rising faster now, the economy is slowing under the strain of higher borrowing costs, and bills are going unpaid.”
Biden has tried to boast about his economic record, dubbing it Bidenomics.
The Biden economy is a disaster for the vast majority of the country.
As former President Bill Clinton’s top advisor James Carville famously said, “It’s the economy, stupid.”
Joe Biden is vulnerable heading into reelection next year with the country struggling because of his failed economic policies.
