Bidenomics Is Just Another Uniparty Dud

It surely took some nerve for the Biden White House to claim that a drop in 4o-year high inflation levels during recent months is evidence that Bidenomics has been a boon to the American economy. But that is true only if you overlook what amounts to a $2.4 trillion elephant in the room.

That’s right. As of January 2021, the American public held about $16.2 trillion of bank deposits, currency and money-market funds—most of which until the last few months was yielding a pittance of interest income. Yet the cumulative CPI inflation on Sleepy Joe’s watch has already amounted to 15%, meaning that more than $2.4 trillion of purchasing power extant in January 2020 has gone up in smoke.

Decline In Purchasing Power Since January 2021

Moreover, the above shrinkage of savings and paychecks presumes that the average consumer buys goods and services in strict accordance with their weights in the CPI. But when it comes to middle and lower-income households that is not remotely the case.

For instance, we recently noted that since January 2021 gas prices are up by 45% and grocery store prices have risen by 20%. And that’s not the half of it—countless frequently purchased items have risen by equivalent amounts in less than three years.

As it happens, the everyday expense items shown below account for just 49.6% of the weights in the CPI. Yet we would dare say than the bulk of main street households spend a far larger share–often 75% or more—of their paycheck on shelter, gasoline, groceries, electric utilities and basic transportation expenses for used cars, vehicle maintenance and air travel.

In fact, the weighted average increase in the items listed below is +21% since January 2021, which amounts to 140% of the above depicted gain in the official CPI. So in the real world, main street households are not feeling the love when it comes to Bidenomics.