The Biden administration has repeatedly touted having the “strongest economy in decades,” but this rosy narrative clashes with the harsh realities facing American families and small businesses.
When the government paints an overly optimistic picture amidst widespread economic struggles, it risks angering voters experiencing the true burdens of negative real wage growth, accumulated inflation, and higher taxes.
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- The Misery II Index for the U.S. is at a staggering 23%, far higher than the historical 17.65% during election years – signaling economic distress for families.
- Middle-class Americans are bearing the brunt of higher taxes, with 20-30% of middle-income households seeing tax hikes in 2022.
- Despite claims of a “strongest economy in decades,” real wage growth has been a paltry 0.76% over the past four years, eroding purchasing power.
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The Reality of Biden’s “Strongest Economy” and What the Misery Index Reveals
Taxation Hits to the Middle Class
Studies show that 20-30% of middle-income households faced tax hikes in 2022, while workers are estimated to bear 70% of the corporate tax increases.
This indirect taxation reduces purchasing power, limits manufacturing job availability and real wage growth, and increases consumer costs.
The Misery Index Tells the Real Story
A metric that cuts through the rhetoric is the Misery II Index, the sum of the current unemployment rate and accumulated consumer price inflation over four years.
Historically, this index averages 17.65% when an incumbent president wins re-election.
However, the reality is far bleaker.
The nationwide Misery II Index is at 23% and is projected to hit 24% by the election.
This means the average American has lost a staggering amount of real wealth and salary purchasing power due to persistent inflation.
Low unemployment provides little solace when a paltry 0.76% real wage growth over four years pales in comparison to the 2.8% increase in the prior four-year period.
Swing State Struggles
According to Bloomberg, economic misery is even more pronounced in swing states, where the Misery II Index is nearly two percentage points higher than in other states.
While voting behavior cannot be predicted, worsening worker and business conditions help explain why many Americans perceive an economy that is much weaker than advertised.
The Perils of Inflationary Policy
This scenario underscores why inflationist government policies promoting unsustainable spending and debt are ultimately self-defeating.
Too often, the painful side effects of diminished purchasing power and impoverishment are ignored.
The administration’s deflection of blame to factors like “greedflation” or “shrinkflation” is misguided.
The only true driver of sustained, widespread inflation is destroying the U.S. dollar’s purchasing power through monetary policy failures that enable chronic deficit spending.
Persisting inflation, even at a slowed pace, is simply the manifestation of this currency debasement – the promises of “free” financial windfalls have only delivered lower real wages and eroded savings for Americans.
With record $34 trillion debt levels, paltry 0.7% real wage growth over four years, anemic labor metrics trailing 2019, and 17.6% CPI inflation that severely understates real-world increase for essentials like food, shelter, and energy, the supposed “Bidenomics” boom rings hollow for too many.
As economic realities crystallize, voter sentiments may well align with the Misery Index’s grim diagnosis—pinning the blame for high inflation and diminished prosperity squarely on years of unchecked government spending sprees.
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