In recent years, the financial well-being of many Americans has starkly declined, a trend underscored when contrasting current economic data with figures from just four years ago. The decline in savings and disposable income, alongside surging debt and delinquencies, paints a grim picture of the economic landscape under the Biden-Harris administration.
As we reach mid-2024, the personal savings rate has plummeted to a mere 3.4%, with real disposable personal income per capita barely inching over half a percent, according to the U.S. Bureau of Economic Analysis. This is in stark contrast to January 2021, at the close of President Trump's term, when Americans enjoyed a robust national personal savings rate of nearly 20% and real disposable income per capita soared at 14%.
The financial prowess Americans experienced under President Trump was not merely happenstance but the result of sound economic policies that significantly uplifted the economy he inherited from Obama. By January 2016, there was already notable progress with a national personal savings rate at 6.1% and real disposable personal income per capita at 1.5%. However, under Biden-Harris leadership, it appears these gains have been reversed.
Household debt is on an alarming rise, marked by a $109 billion increase to $17.80 trillion in just the second quarter of 2024 alone. Bankruptcy filings are up as evidenced by new notations on credit reports for this period. Even more concerning is the record surge in credit card balances which have escalated by $27 billion to an unprecedented $1.14 trillion within three months, alongside auto loan balances climbing to $1.63 trillion.
Delinquency rates provide further evidence of escalating financial distress among Americans; approximately 9.1% of credit card balances and 8% of auto loan balances are now delinquent - figures unseen since before the turn of the millennium when flip phones were considered cutting-edge technology.
Rising interest rates exacerbate these challenges by inflating monthly payments on both new and used vehicles making it even harder for individuals to keep up financially - leading to increased delinquencies and repossessions which as of July 2024 have surged significantly compared to pre-pandemic levels.
This financial strain is not evenly distributed; it disproportionately impacts younger generations like millennials and lower-income households who find themselves ensnared in cycles of debt due to their disproportionate burden compared to their earnings.
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Many American families are resorting to dire measures such as accruing high-interest credit card debt or engaging with payday loans simply to afford basic necessities like groceries - a testament to their exacerbated financial precarity under current economic conditions.
Amidst this backdrop of soaring inflation and job concerns which remain paramount among voters' minds, President Biden's affirmation that America is "moving in the right direction" seems disconnected from reality as evidenced by widespread sentiment that suggests otherwise - with an overwhelming majority expressing belief that we're instead headed down a troubling path.
These statistics reveal not just numbers but stories of American families grappling with an increasingly unattainable cost of living and dwindling opportunities for financial stability – issues that demand immediate attention and action if we are indeed committed to reversing this downward spiral and restoring prosperity for all Americans.
As we reach mid-2024, the personal savings rate has plummeted to a mere 3.4%, with real disposable personal income per capita barely inching over half a percent, according to the U.S. Bureau of Economic Analysis. This is in stark contrast to January 2021, at the close of President Trump's term, when Americans enjoyed a robust national personal savings rate of nearly 20% and real disposable income per capita soared at 14%.
The financial prowess Americans experienced under President Trump was not merely happenstance but the result of sound economic policies that significantly uplifted the economy he inherited from Obama. By January 2016, there was already notable progress with a national personal savings rate at 6.1% and real disposable personal income per capita at 1.5%. However, under Biden-Harris leadership, it appears these gains have been reversed.
Household debt is on an alarming rise, marked by a $109 billion increase to $17.80 trillion in just the second quarter of 2024 alone. Bankruptcy filings are up as evidenced by new notations on credit reports for this period. Even more concerning is the record surge in credit card balances which have escalated by $27 billion to an unprecedented $1.14 trillion within three months, alongside auto loan balances climbing to $1.63 trillion.
Delinquency rates provide further evidence of escalating financial distress among Americans; approximately 9.1% of credit card balances and 8% of auto loan balances are now delinquent - figures unseen since before the turn of the millennium when flip phones were considered cutting-edge technology.
Rising interest rates exacerbate these challenges by inflating monthly payments on both new and used vehicles making it even harder for individuals to keep up financially - leading to increased delinquencies and repossessions which as of July 2024 have surged significantly compared to pre-pandemic levels.
This financial strain is not evenly distributed; it disproportionately impacts younger generations like millennials and lower-income households who find themselves ensnared in cycles of debt due to their disproportionate burden compared to their earnings.
Get the latest, most crucial news stories on the web – sent straight to your inbox for FREE as soon as they hit! Sign up for WayneDupree.com Email News Alerts in just 30 seconds!
Many American families are resorting to dire measures such as accruing high-interest credit card debt or engaging with payday loans simply to afford basic necessities like groceries - a testament to their exacerbated financial precarity under current economic conditions.
Amidst this backdrop of soaring inflation and job concerns which remain paramount among voters' minds, President Biden's affirmation that America is "moving in the right direction" seems disconnected from reality as evidenced by widespread sentiment that suggests otherwise - with an overwhelming majority expressing belief that we're instead headed down a troubling path.
These statistics reveal not just numbers but stories of American families grappling with an increasingly unattainable cost of living and dwindling opportunities for financial stability – issues that demand immediate attention and action if we are indeed committed to reversing this downward spiral and restoring prosperity for all Americans.
