Bidenomics Continues to Hit the Poor Hardest

Yesterday, the Federal Reserve announced another increase in interest rates because of ongoing high inflation. This is the third straight increase, matching rate increases not seen for decades.

Unfortunately, inflation always hits the lowest income, and those on a fixed income, the hardest. Why? A simple answer is to ask who are the people taking out loans—credit cards, car loans, etc.. It is the people who may be living paycheck to paycheck and cannot afford to make purchases without using credit and, with higher interest rates, they pay more. Even if you look a little deeper, those working in the service industries, for example, are not able to work at home and so have to spend money on gas to get to work. Gas is up about 75% in the last two years. Other essentials, such as food, have had the cost has gone up even higher than the average inflation rate. Last month, average inflation rate was about 8.3% but the cost of food was up 13.1%.

People who have to get to their lower wage jobs and cannot work from home or cannot afford to cut back elsewhere to absorb the rising cost of food-those are the ones hit hardest.

For all the talk about helping the working class, President Biden’s actions do just the opposite and actually make the wage gap larger.

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