Perfect storm: consumer savings depleted, wage growth down 80%, delinquency rates up 50%.

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The American consumer is facing a “perfect storm” as the three pillars propping up spending power crumble simultaneously. The pandemic savings that once provided a cushion have been depleted, wage growth has plummeted by 80%, and delinquency rates have surged by 50%. This triad of deteriorating factors signals a bleak horizon for consumer resilience and economic stability.

Since January 2021, inflation has relentlessly climbed, with consumer and wholesale prices rising around 19%, and core prices for consumers and businesses up about 18%. Recently, cumulative Consumer Price Index (CPI) increases have finally aligned with Producer Price Index (PPI) increases, intensifying the economic strain on households and businesses alike.

The reality of “Bidenomics” is stark: government spending not only places taxpayers between the rock of taxation and the hard place of inflation but also undermines long-term fiscal health. Despite optimistic projections, the Fed’s 2% inflation target seems increasingly out of reach. Without significant reductions in government spending and a renewed focus on America’s fiscal health, these economic pressures will continue to mount.

The dire situation necessitates creative statistical adjustments to mask the severity of the decline, but no amount of number-crunching can alter the fundamental truth: the current trajectory is unsustainable. The persistent mismatch between government spending and economic reality underscores the urgent need for policymakers to prioritize fiscal responsibility and structural reforms to safeguard the future.

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