Why U.S. is staring down the barrel of another recession

Jared Bernstein has once again demonstrated his complete ignorance of both economic theory and fact — an alarming trait for the chairman of the Council of Economic Advisers. In his attempts to defend the abysmal record of “Bidenomics,” Mr. Bernstein is resorting to misrepresenting data and making false statements.

Both credit card debt and the interest rate charged on that debt are at record highs. Mr. Bernstein’s attempt to dismiss these figures because of the growth in disposable personal income only displays his ignorance of the data — despite its being produced by the very administration of which he is a part.

The higher interest rate is a vital consideration because the amount of interest charged on a credit card is a function of both the card’s balance and its interest rate. The combination of more credit card debt and higher interest rates makes it mathematically impossible for financing costs on credit cards relative to incomes to be lower today than before the pandemic, directly contradicting Mr. Bernstein’s claim.

And it’s the growing amount of consumer debt that is sustaining today’s spending levels, another fact of which Mr. Bernstein seems blissfully unaware. While he praised the growth in consumer spending in July, he neglected to acknowledge that there was no income growth that month, meaning the extra spending came from a depletion of savings and an expansion of debt.

Inflation has outpaced wage growth by such a wide margin under Mr. Biden that at no time in his presidency have the weekly earnings of the average American worker been able to buy what they could when he was inaugurated.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breitbart Business Digest: Bidenomics Summer Ends with Americans More Pessimistic About Their FinancesIf Joe Biden was hoping this would be a hot Bidenomics summer, he has got to be feeling pretty disappointed right now.
Source: BreitbartNews - 🏆 610. / 51 Read more »

'Bidenomics' Won't Save America—But Neither Will ReaganomicsAny conservative candidate for office will have an opportunity to articulate an economic plan that really does help all Americans.
Source: Newsweek - 🏆 468. / 52 Read more »

Biden’s ambitious anti-poverty battle just took a hit — and so might ‘Bidenomics’The child poverty rate more than doubled in 2022 as Covid-era aid programs expired, erasing major economic gains for the poorest Americans.
Source: politico - 🏆 381. / 59 Read more »

Bidenomics Broke America: Real Household Income Suffers Biggest Drop In 12 YearsAfter taxes, median real income fell 8.8 percent last year. | Economy
Source: BreitbartNews - 🏆 610. / 51 Read more »

Bidenomics strikes again: Real household income suffers biggest drop since Great RecessionNominally, households earned more money in 2022 than they did in 2021. But thanks to inflation caused by Bidenomics, real household income (that is, income adjusted for inflation) not only fell, but fell by an amount not seen since the Great Recession.
Source: dcexaminer - 🏆 6. / 94 Read more »

Kemp blames 'Bidenomics' for soaring gas prices as he suspends fuel taxGov. Brian Kemp (R-GA) announced on Tuesday that he would be suspending the gas tax in the Peach State through an executive order while blaming President Joe Biden's handling of the economy.
Source: dcexaminer - 🏆 6. / 94 Read more »