LETTER: The Biden economy
In a Dec. 24 letter, Jerry Sturdivant touts the Biden economy by repeating all of the White House talking points: The stock market is at an all-time high; unemployment is at an historic low; gasoline is under $3 per gallon; and inflation is decreasing.
Well, the market is up because of inflation. It takes more dollars to buy the same stocks. Unemployment is low because many have to work two jobs. Gasoline is still almost 50 percent higher than under Donald Trump. The inflation “rate” is down from the Biden peak of 9 percent, but prices will remain high. They are just increasing at “only” twice the rate as under Mr. Trump.
The real reason people think the economy stinks is per capita disposable income. Families care about how much money is left over after you pay for necessities. Today, after you feed and house your family and pay your bills, there is less available. Many are making ends meet with credit cards, second jobs and sacrifice. According to Federal Reserve of St. Louis Economic Data website, per capita disposable income hit an all time high of $54,541 at the end of Mr. Trump’s term in January 2021. Under Joe Biden it dropped to $47,872 in June 2022 and has since recovered somewhat to $50,062 in September 2023.
Prices are 18 percent higher since Mr. Biden took office and inflation-adjusted real wages have dropped 3 percent. That is a significant loss in buying power. Yes, people are spending more money, but they are getting less stuff and have little left over after paying bills. That is why the average Joe thinks the economy “stinks.”
