Connect with us

Hi, what are you looking for?

Debt

Bidenflation Is Real, and It’s Costing Americans

Inflation was made worse by the Biden Administration's financial choices.
Photo by Reynaldo Brigworkz Bigantty on Pexels.

The Biden administration recently passed the American Rescue Plan, a massive spending law intended to help Americans recover from the economic effects of the Covid-19 pandemic. Unfortunately, the consequences of this plan are becoming more evident: Bidenflation continues to have a detrimental impact on the US economy and the wallets of American citizens. The phenomenon is affecting Americans so much that the term “Bidenflation” is becoming increasingly popular.

Bidenflation

Bidenflation was coined to describe the rise in inflation in the United States due to President Biden’s economic stimulus package, the American Rescue Plan (ARP). The ARP provided financial relief for millions of Americans during the pandemic and undoubtedly helped families and individuals stay afloat. However, there were concerns, even at the time, about the long-term effects of such government spending.

Even as early as October 2021, the Federal Reserve admitted the stimulus package was stoking inflation. Of course, that was back when the Fed still insisted inflation was transitory. The Federal Reserve’s initial refusal to acknowledge inflation as a mounting economic hurdle for the country contributed to the aggressive interest hikes we’re seeing now.

Even President Biden conceded that the ARP poured fuel on the fire and worsened inflation.

How did the ARP make things worse?

The Plan included generous expansions to unemployment insurance and stimulus checks for each adult family member, all of which have contributed to inflation.

The impact of inflation is mostly hurting low and middle-income families who were more likely to spend the extra money from the stimulus checks or unemployment insurance on goods and services, pushing up prices.

Increased spending from Americans having more money at their disposal led to the Federal Reserve raising interest rates. While the Fed’s actions were in line with economic policy, the circumstances were everything but typical. From the ARP’s conception all the way through the Fed’s ongoing interest rate hikes, experts have continuously cautioned the fallout could devastate everyday Americans.

What happens next?

Unfortunately, it appears we’re due for more of the same, at least for some time. Some experts suggest the fallout from President Biden’s ARP could lead to a recession later this year. In light of recent bank issues, that might happen. Others argue that we technically already entered a recession. However, none of this helps the average American.

As Americans scramble to make ends meet and hope for Congress to put aside their issues and come up with a solution, there isn’t much positivity about the near future. The 2024 election is closer than we realize, and inflation is reportedly American voters’ top concern. As the Republican party moves closer to primaries with a more or less solid idea of their top contenders, Democrats could move away from President Biden after a single term.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

economy

In the early 2000s, I remember watching a game show, and the grand prize was a million dollars. I thought to myself, “Wow, that’s...

economy

When starting college and choosing a major, it’s important to know which college degrees will make you the most money. Since last year’s quarantine,...

2016 president election

In a political climate dominated by a two-party system, Libertarians are constantly confused as off-brand Republicans. Although the two groups sometimes align on issues,...

Business

What is the gap between culture and technology? According to Damas, entertainers have passions that brands and companies may not be aware of, and...

Copyright © 2020-2021 GenBiz. GenBiz is owned and operated by owned by the Foundation for American Content and Entertainment, a 501(c)(3) non-profit organization.