Given the myriad of issues arising from Joe Biden’s America, a steep inflation problem just had to come out of it.
The Wharton School of the University of Pennsylvania released a budget model saying that, on average, Americans will be forced to spend $3,500 more this year so that they can sustain their level of consumption from the past two years – 2019 and 2020.
It also touted that this will disproportionally affect low-income families in the country.
Spending Increase in Biden’s America
The study, titled The Impact of Inflation by Household Income, had estimated that lower-income households will need to spend 7% more money so that they can keep their previous consumption patterns. Meanwhile, higher-income families will only need to spend 6% more.
Although, due to the variation in what makes up composition bundles, the study says that higher-income households experience smaller percentage increases in total expenditure. These households also spend relatively more on services, which is a sector that experienced smaller price increases. Meanwhile, lower-income households tend to spend relatively more on energy where prices increased more. Under the fixed bundle assumption for 2019, the bottom 90% of households experienced an increase in their consumption expenditure by between 6.7% to 6.9% in 2021.
Among all the consumption basket of income groups, the bottom 20% of households saw their consumption price go up by 6.8% or by $2,120.
Meanwhile, the top 5% of households will only experience a consumption increase of 6.1% or by $7,636.
Another month of rising prices under Biden:
Gas: +58.1% since last year
Propane & Firewood: +34.3%
Used Cars & Trucks: +31.4%
Hotels & Motels: +25.5%
Car & Truck Rentals: +37.2%
— Jacki Kotkiewicz (@jackikotkiewicz) December 10, 2021
The study also mentioned that, because the higher-income groups saw a larger increase in expenditures across all categories, these groups also had a bigger increase in their total expenditure. However, due to the variation in what makes up composition bundles, the study found that higher-income families would also see smaller percentage increases in their overall expenditure.
According to a Fox Business Poll, Americans are feeling that they had to let go of more money just to keep the same standard of living.
Almost half of Americans also feel that President Joe Biden has a hand in making inflation worse.
Luckily, Biden’s BBB spending bill has been set aside until at least 2022. This may not help exponentially at this point, but most Americans will take any break in spending as they can have.
Inflation was 6.8% in November, the highest in a month since 1982.
That means the Biden administration just gave every American a 6.8% pay cut.
— Robert Sprague (@RobertCSprague) December 11, 2021