Democrat politicians seem befuddled by the general lack of respect for what they believe are the accomplishments of Bidenomics. But they shouldn’t be. Because, despite some rebound in the economy since the COVID shutdown, Americans continue to struggle.
While the U.S. remains a wealthy country compared to others, nearly two-thirds of Americans say they are “living ‘paycheck to paycheck’ these days” in the latest I&I/TIPP Poll, conducted from Jan. 3-5 from among 1,401 registered voters. The poll has a +/-2.6 percentage point margin of error.
This shocking result comes as some on Wall Street and many politicians applaud recent data showing solid growth in the fourth quarter, along with a slowing rate of inflation.
What’s equally shocking is that the public’s concern is bipartisan, with 63% of Democrats, 67% of Republicans, and 62% of independents saying they’re just scraping by each payday.
Is Washington listening?
Interestingly, more than half of those in the wealthiest income bracket — those earning $75,000 or more a year (53%) — and those who are investors (51%), another relatively wealthy group, each said they’re also having trouble making ends meet on a monthly basis. Those at lower incomes, defined as below $70,000 a year in income, averaged 68% saying they were having difficulty making ends meet.
The problem even seems to unite everyone by race, with 62% of white Americans and 69% of black and Hispanic Americans agreeing they’re struggling financially each paycheck. No one’s immune.
To shed further light on this little-discussed problem, the I&I/TIPP Poll asked a more specific question: “How much money do you have in savings that you could use in an emergency?”
The answers were then grouped by dollar value based on the individual responses as follows: “$0,” “less than $1000,” “$1,000 to $4,999,” “$5,000 to $9,999,” “$10,000 to $19,999,” “$20,000 to $49,999,” and “$50,000 or more.” They could also respond “prefer not to answer.”
Again, the answer is distressing: 24% of all Americans responded “$0.”
Meanwhile, 20% answered less than $1,000, and yet another 14% said less than $5,000. A total of 44% had either zero or less than $1,000. The median savings amount, even after counting in the richest Americans, totaled just $1,586.
In short, economically speaking, Americans are ill-prepared for financial emergencies.
Here’s another surprising set of data from the poll: Minorities (blacks/Hispanics) are more likely (75%) to have money put away for a rainy day than are whites (67%). And the main minority groups are less likely to have zero saved (20%) than whites (26%).
Moreover, the median held by minorities, $2,232, is well above the white median of $1,310.
By gender, women (33% no savings) are more likely to be savings-insecure than men (15%). Median savings for men totaled $5,291, compared to $573 for women. The gap is huge.
What does all this mean? Simple. Most Americans are having trouble making ends meet, living, as the poll put it, “paycheck to paycheck.”
Which is surprising, since politicians continue to tell Americans they’ve never had it so good.
“Experts, from the time I got elected, were insisting that a recession was just around the corner. Every month, there was going to be a recession,” Biden said Saturday, laughing as he referenced the 3.3% GDP growth in the fourth quarter.
Biden has been aided by media reports, such as “This is the Best U.S. Economy Since the 1990s,” and New York Times columnist Paul Krugman referring to our recent economic issues as a “Vibecession.”
But as the data above show, Americans’ pain is real, not a hipster “vibe.” And the idea that the U.S. economy is doing fine is simply not the case. While overall growth has rebounded after the economy crashed 7.5% in 2022’s second quarter, a post World War II record, Americans are still feeling inflation’s pinch.
Since Biden’s term began, overall inflation has risen 16.6%, sharply eroding Americans’ purchasing power. In real terms, the average full-time wage worker took home about $373 a week during the first quarter of 2021, the last quarter Trump was in office. In the most recent federal data, the amount was $371.
So even after three years, working Americans are earning less in real terms than they did when Biden’s term started.
It’s no wonder Americans have so little money in the bank for emergencies. Because of Bidenflation, as it’s been called, average working people are saving less than they did under Trump.
Food prices are up nearly a third since Biden took office, while gasoline prices have jumped 28.4%. Federal debt has soared, with interest now totalling close to $1 trillion a year, twice what it was just two years ago. All that money printed to pay debts is causing inflation and higher interest rates. This hurts those at the bottom rungs of the economic ladder the most.
As FactCheck.org recently highlighted, under Biden:
Inflation spiked to the highest level in over 40 years. Despite recent moderation, consumer prices are up nearly 18% overall during Biden’s time. Gasoline is up 29%.
And:
Average weekly earnings haven’t kept pace with prices. After adjusting for inflation, ‘real’ weekly earnings declined 3.4%.
Even the fairly low unemployment rate of 3.7% has been called into question, as E.J. Antoni recently observed on TIPP Insights:
Depending on how one wants to measure the pre-pandemic trends in the labor market, the economy is effectively missing between 4.8 million and 6.8 million workers. Accounting for their absence yields a more accurate unemployment rate of between 6.4 and 7.5%, a range commonly found in recessions.
Moreover, as MRCtv.org recently pointed out, personal savings rates jumped from 5.6% when Trump entered office to 12.8% when he left, a function of low inflation, low interest rates and solid wage growth. After Biden took over, even among those with jobs savings rates plunged from 12.8% to 3.7% currently.
This is why Americans are living hand to mouth. They have no financial cushion to protect them from economic shocks. Along with soaring crime rates and millions of illegals crossing into the U.S., this helps explain why Trump’s MAGA has become popular even, among some Democrats.
I&I/TIPP publishes timely, unique, and informative data each month on topics of public interest. TIPP’s reputation for polling excellence comes from being the most accurate pollster for the past five presidential elections.
Terry Jones is an editor of Issues & Insights. His four decades of journalism experience include serving as national issues editor, economics editor, and editorial page editor for Investor’s Business Daily.
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TIPP Takes
Geopolitics, Geoeconomics, And More
1. U.S., Israel, Egypt, Qatar Officials In Paris For Gaza Talks: Sources – AFP
The head of the U.S. Central Intelligence Agency, William Burns, as well as top Egyptian, Qatari, and Israeli officials, were in Paris working towards a ceasefire in Gaza, officials close to the participants said.
French authorities were also in touch with these four countries to negotiate a halt to hostilities between Israel and the Palestinian militant group Hamas in the besieged territory, the sources said.
2. As Biden Vows To Retaliate, Iran Denies Link To Drone Attack On U.S. Troops – AFP
Iran denied U.S. and British accusations that it supported militant groups behind a drone strike in Jordan that killed three U.S. military personnel, Tehran’s official IRNA news agency reported.
So far, there has been no claim of responsibility for the strike. The drone strike marked the first U.S. military losses since the war between Israel and Hamas began. U.S. Central Command said 34 personnel were also wounded.
3. Algeria Calls A UN Security Council Meeting For Next Wednesday After ICJ Ruling On Gaza War – RFI
The UN Security Council will meet next Wednesday over the decision by the International Court of Justice (ICJ) calling for Israel to prevent genocidal acts in Gaza, the council’s presidency announced.
Algeria’s Ministry of Foreign Affairs said it would give “binding effect to the pronouncement of the International Court of Justice (ICJ) on the provisional measures imposed on the Israeli occupation.”
The ICJ earlier ruled 15-2 that there was “plausibility” to South Africa’s claims that Palestinians require protection from genocide.
4. Would Be Beginning Of World War III If…: Ukraine’s Zelensky Warns Russia – Reuters
President Volodymyr Zelensky voiced the danger of the Ukraine conflict escalating into World War Three. He pressed his case for support from nations from Germany to the United States in an interview with German state broadcaster ARD.
“It seems to me that the Chancellor (Olaf Scholz) is aware of this risk,” Zelensky said, adding that if Russia hit a NATO country, it would be “the beginning of the Third World War.”
“It’s not just about Olaf Scholz,” he said. “It concerns European leaders and the U.S.”
5. Amid War, Ukraine’s Zelensky Declares His Income As Part Of Transparency Drive – Reuters
Ukrainian President Volodymyr Zelensky made public his income over two years as part of a drive to promote transparency and root out endemic corruption.
In a post on the presidential website, Zelensky noted that his income had declined in 2021 and 2022 when Russia invaded Ukraine at the end of February. It was the first time he publicly declared his income.
6. Evergrande: Crisis-Hit Chinese Property Giant Ordered To Liquidate – BBC
Debt-laden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.
Judge Linda Chan said, “Enough is enough” after the troubled developer repeatedly failed to devise a plan to restructure its debts. The firm has been the poster child of China’s real estate crisis, with over $325 billion in liabilities.
7. China Tightens Stock Market Rules After Sell-Off – BBC
China has tightened its financial industry rules as the government tries to halt a deepening sell-off in the world’s second-largest economy.
Nearly $6tn has been wiped off Chinese and Hong Kong stocks since their most recent peak three years ago. The China Securities Regulatory Commission (CSRC) says the measures will create “a fairer market order.” Under the new rules, the so-called “short-selling” will be limited from Monday.
The sell-off in China’s stock market comes as some investors are concerned that the country’s economy could face a long period of slow economic growth.
8. China’s Xi Jinping’s “Break New Ground” Offer To France, Days After Macron’s India Visit – PTI
Chinese President Xi Jinping has offered to “break new ground” to fill the China-France ties, days after French President Emmanuel Macron’s high-profile visit to India.
During his visit to India, the two countries unveiled an ambitious defense roadmap besides intensifying cooperation in the strategic Indian Ocean and the Indo-Pacific region.
Macron’s visit to India coincided with the 60th anniversary of diplomatic relations between China and France.
9. Vietnam Is A Top Target For Chips Act Aid Funds, U.S. Says – Nikkei Asia
A visiting U.S. envoy said that Washington is prepared to pump funds into Vietnam’s chip sector to shore up supply chains and wants the country to “take advantage” of its bid to reduce reliance on China.
The U.S. is targeting seven countries for part of its CHIPS and Science Act, which includes $500 million for improving semiconductor training, cybersecurity, and business climates globally, said Jose Fernandez, U.S. Undersecretary of State for Economic Growth, energy, and the Environment.
10. Chinese Communist Party Continues Crackdown On LGBTQ+ People – RFA
The ruling Chinese Communist Party under Xi Jinping has cracked down on anyone displaying the rainbow flag in public, members of China’s LGBTQ+ community said in recent interviews.
While homosexuality was decriminalized in China in 1997 and removed from official psychiatric diagnostic manuals in 2001, Chinese Communist Party leader Xi Jinping has ushered in a far more conservative attitude to sexuality than his predecessors.
Across the strait, though, it’s been nearly five years since Taiwan passed historic legislation confirming a constitutional right of same-sex couples to marry, making the democratic island the first jurisdiction in the Asia region to do so.
11. Iran Wraps Up Trial Of Swedish EU Diplomat – AFP
The trial of a Swedish EU diplomat, Johan Floderus, wrapped up in Tehran, with Iranian prosecutors seeking the maximum penalty for the man accused of spying for Iran’s arch-foe, Israel.
Floderus was charged with “corruption on Earth,” which is one of Iran’s most serious offenses and carries a maximum penalty of death. Sweden and the EU have repeatedly called for Floderus’s immediate release, arguing there was “absolutely no reason” for him to be held.
12. Iran Executes 4 Men Convicted Of Spying For Israel’s Mossad – AFP
“The death sentence of four members of a group affiliated with the Zionist spy organization, who was arrested… for plotting a bombing operation in (the central province of) Isfahan, was carried out this morning,” the judiciary’s website Mizan Online reported on Monday.
13. U.S., EU Urge Kosovo To Postpone Decision On Banning Serbian Dinar – RFE/RL
Five Western countries, including the U.S., have urged Pristina to postpone a decision by Kosovo’s Central Bank to restrict all cash transactions anywhere in the country to euros from February 1.
For two decades, encouraged by Belgrade and reluctantly ignored by Pristina, residents in 10 heavily ethnic Serbian municipalities have clung to the Serbian currency, the dinar.
14. Kim Jong Un’s Sister ‘Not To Be Underestimated,’ Author Says – RFA
North Korea’s next global “charm offensive” will be led by leader Kim Jong Un’s younger sister, Kim Yo Jong, the strategic mastermind in Pyongyang, who could eventually succeed her brother in power.
At least that’s according to Sung-Yoon Lee, a North Korea expert and fellow at the Wilson Center who late last year released a 304-page biography about the woman he calls “the brains” behind the despotic rule of her brother, a man he says is more interested in basketball.
15. Kim Jong Un Boosts Underwater Nuclear Threat, Urges Fast Submarine Build – RFA
North Korea’s leader Kim Jong Un has overseen the test-firing of submarine-launched cruise missiles and ordered officials to expedite the North’s nuclear submarine development, state media reported.
Submarine-launched weapons can be deployed covertly, often evading detection systems, potentially offering Pyongyang a more elusive means of deploying its nuclear weapons.
16. Kim Jong Un’s ‘Infidel’ Hairstyle: A Fashion Sin Under New Taliban Rules – RFE/RL
Afghan men have limited options when visiting the barbershop if they do not want to be accused of walking away looking like a trendy Westerner or a North Korean dictator.
No haircuts that make them look like an “infidel.” No trimmed eyebrows. And no shaved faces or beards shorter than the optimal length.
Any of those styles are considered a fashion sin, according to a new six-point list of rules for barbers issued by the Taliban’s Ministry for the Promotion of Virtue and the Prevention of Vice.
17. Niger, Mali And Burkina Faso Quit ECOWAS Regional Block – RFI
Three West African junta-led states, Niger, Mali, and Burkina Faso, said they are leaving the Economic Community of West African States (ECOWAS) immediately, according to a joint statement.
“The organization notably failed to assist these states in their existential fight against terrorism and insecurity,” Colonel Amadou Abdramane, Niger junta spokesman, said in the statement.
Struggling with jihadist violence and poverty, the regimes have had tense ties with ECOWAS since coups took place in Niger last July, Burkina Faso in 2022 and Mali in 2020.
18. Japan: Moon Lander SLIM Comes Back To Life And Resumes Mission – BBC
Japan’s Moon lander has resumed operations after being shut for a week due to a power supply issue.
The Japan Aerospace Exploration Agency said it re-established contact with the lander Sunday night, indicating that the glitch had been fixed.
With the Smart Lander for Investigating Moon (SLIM) spacecraft, Japan became only the fifth country to achieve a soft touchdown on the moon after the U.S., the former Soviet Union, China, and India.
19. Study Finds Playing A Musical Instrument Protects Older People’s Brains – UPI Health
According to a new British research, playing a musical instrument is linked to better brain health in older adults, including better memory and problem-solving capability.
Data analysis of 1,000 people over age 40 enrolled in the 10-year PROTECT dementia study of 25,000 older adults found playing an instrument was associated with improved memory and superior executive function – the ability to solve complex tasks.
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Republished with permission from TIPP Insights
