The Hidden Costs Of Biden’s Inflation Are Destroying The American Dream

Published

2 years ago

May 26, 2023

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U.S. inflation continues to dog both the American and, more importantly, the American consumer. The year-over-year inflation rate in April 2023 was 4.9%, per the U.S. Bureau of Labor Statistics . Many television economists and talking heads celebrated the slowing of inflations rate of growth. What these so-called experts fail to realize is that Aprils inflation rate was 4.9% higher than the rate in April 2022 , which was 8.3%. This means that the inflation rate was 13.2% when compared to April 2021 hardly a number worth celebrating.

Journalists have written extensively about the impact of inflation on Americas collective pocketbook. Higher gas prices, higher food prices, and higher prices for items such as used cars and trucks have dominated the headlines. But there are hidden costs to inflation, inflicting pain on the middle class and poorest Americans.

The U.S. real estate market is already in a recession. Through the first quarter of 2023, U.S. housing market activity as measured by private residential fixed investment has declined, on a nominal basis, for four straight quarters Fannie Maes forecast model thinks declines in the U.S. housing market will spill over and help to push the U.S. economy into a recession.

The housing market is in a vicious cycle. Interest rates are above 7% for the third time this year. This is driving a lack of inventory as people with fixed rate mortgages below 5% are loath to sell their homes and purchase a new home at a higher interest rate. The lack of inventory is driving bidding wars in some areas, making first-time homeownership more difficult. It also makes it harder to recruit people to fill roles in companies that require relocation. Simply put, not many people want to venture into the housing market at this time.

It is not just housing. The U.S. auto market is quietly suffering, but not in a manner that many think. Prices are slowly dropping , as supply chain issues are abated, with new car prices expected to fall 2.5 5% and used vehicle prices expected to decrease 10 20%.

However, the typical interest rate on a new car loan rose to 8.95% in March, up from 5.66% in March of 2022. For used cars, the rate was 11.3% in March, up from 7.7% a year ago. A one percentage point increase on an auto loan adds roughly $20 a month to a car note and thousands of dollars extra over the life of the loan.

The higher interest rates for cars are not calculated in the inflation rate, just the drop in MSRP. The hidden cost is found in higher interest rates causing more drivers to fall behind on their car payments. In January 2023, the percentage of auto borrowers who were at least 60 days late on their bills climbed 2% from December and 20.4% from the previous year, according to Fox Business. The percentage of severe delinquencies surged to the highest level since 2006. Loan defaults increased 6.2% over the course of January 2023 and were up 33.5% from a year earlier. Car repossessions were up 11% in 2022.

Another hidden cost of inflation is the grossly expanding credit card debt of American citizens. U.S. consumers now owe $986 billion on their credit cards, according to data from the Federal Reserve Bank of New York. That is a 17% increase from a year ago and a record high, as more households are forced to use their credit cards to pay monthly expenses such as food and utilities.

The final hidden cost of inflation is the increase in hardship withdrawals from retirement plans. In 2022, 401(k) hardship withdrawals rose by 24%, not only demonstrating how people are struggling to make ends meet, but also signaling a pending retirement crisis, as people will have less money on which to depend during retirement.

Joe Bidens inflation is destroying the American dream. At a time when 57% of Americans cannot afford an emergency expense of $1,000 or more from their savings, Democrats want to not only increase the debt limit, but also raise taxes so they can spend more money, which will drive more inflation. Americans are hurting, and their pain is not covered in todays financial headlines.

Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in The Washington Examiner, Newsweek, Foxnews.com, and The Daily Wire. He has served as a chief procurement officer, chief supply chain officer, and chief operations officer for multiple companies.

The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

UK

Woman’s body found close to where two sisters vanished in Scotland

Published

2 hours ago

January 31, 2025

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Woman's body found close to where two sisters vanished in Scotland

The body of a woman has been recovered from the River Dee close to where two missing sisters disappeared in Aberdeen.

Eliza and Henrietta Huszti, both aged 32, were last spotted on CCTV in the city’s Market Street at Victoria Bridge at about 2.12am on Tuesday 7 January.

The women were seen crossing the bridge and turning right on to a footpath next to the River Dee in the direction of Aberdeen Boat Club.

On Friday, it was confirmed a woman’s body had been recovered from the water east of the club.

Although the body is yet to be formally identified, Police Scotland said the family of Henrietta had been informed.

The force added there were “no apparent suspicious circumstances”, with searches ongoing for Eliza.

The Police Scotland dive and marine unit, along with other specialist officers, are carrying out further searches of the river and the riverbanks between Queen Elizabeth Bridge and Victoria Bridge.

Superintendent David Howieson said: “Our thoughts are with the Huszti family today. We are keeping them fully updated following this recovery and the further search activity which is ongoing.

“Our priority remains finding both of the sisters and search has focused on the River Dee and will do so in the coming days.

“We are carrying out further searches of the river in the area where the body was recovered this morning.

“The river in this area is tidal and conditions are challenging but we will continue to search and make every effort to locate both of the sisters.

“We have sought guidance from a number of experts and this will continue to inform our search activity.”

Investigating officers previously said there had been “no evidence” of the women leaving the immediate area and there had been nothing to suggest “suspicious circumstances or criminality”.

The police revealed that the sisters – who are part of a set of triplets and originally from Hungary – visited the bridge where they were last seen about 12 hours before they disappeared.

They also sent a text message to their landlady on the morning they vanished, indicating they would not be returning to the flat.

Superintendent Howieson added: “We know how much of an impact this has had in Aberdeen and much further afield.

“We have had a positive response from the public to our appeals and I would like to thank everyone who has already come forward to date.

“I would again urge anyone with any information which could help our investigation to get in touch.”

In a statement released via Police Scotland earlier this month, the family said: “This has been a very worrying and upsetting time for our family.

“We are really worried about Eliza and Henrietta and all we want is for them to be found.”

UK

Manhunt as police appeal for former footballer to return to prison

Published

2 hours ago

January 31, 2025

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Manhunt as police appeal for former footballer to return to prison

A former footballer has been recalled to prison.

Leon Jeanne, 44, played for a number of clubs including Queens Park Rangers and Cardiff City, breaking into the QPR first team in 1998.

South Wales Police issued a brief appeal on its Facebook page saying he is wanted back in prison.

It said: “Leon Jeanne, age 44, from Cardiff. Recalled to prison. Give reference 2500002271.”

Former England international Peter Crouch once named Jeanne among the players who didn’t make it to the level he expected.

He told the Daily Mail in 2020 that Jeanne “looked like he could go far but it never happened”.

In 2015, Jeanne was one of six men convicted of conspiring to supply cocaine, heroin and cannabis, and sentenced to 30 months in prison.

Police said a gang of six men plotted to bring hundreds of thousands of pounds worth of drugs into Gloucestershire from London, Cardiff and Birmingham, the BBC reported at the time.

Jeanne’s son, Rafel, was one of three people who died in a car crash in Cardiff in March 2023.

Jeanne’s stint in prison on drug offences was not his last run-in with the law, and he has also faced convictions including dangerous driving and threatening behaviour, Wales Online reported.

Police did not specify why he has now been recalled to prison.

Environment

Wheel-E Podcast: JackRabbit’s solar charger, Cowboy e-motos, more

Published

2 hours ago

January 31, 2025

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Wheel-E Podcast: JackRabbit's solar charger, Cowboy e-motos, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new solar charging kit from JackRabbit, a reversal on a plan to double the power limit for e-bikes in the UK, China is pushing to replace lithium-ion battery e-bikes with lead acid battery alternatives, the Dallas Cowboys all got new electric motorcycles, UBCO enters receivership, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 10:00 a.m. ET (or the video after 11:00 a.m. ET):

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