Millions of Americans trying to retire today feel like Bob Cratchit, toiling away in Scrooge & Marley’s counting house, but unable to get ahead.
New research explains why: The modern-day Scrooge of Bidenomics has reduced the real value of the average 401(k) by a quarter in the last two and a half years.
The study, published with the Committee to Unleash Prosperity, examined individual retirement accounts (IRAs) and pension plans and found shocking losses under the Biden administration, enough to delay many Americans’ retirement plans for years.
How this happened is a painful lesson in government overspending and overregulating, the hallmarks of Bidenomics.
Immediately upon taking office, the Biden administration and their big-spender allies in Congress ran up multitrillion-dollar tabs with no way to pay, so the Federal Reserve just created the money to finance it all.
That sparked 40-year-high inflation, which was followed by the fastest interest rate hikes in just as long.
This severely hampered equities but completely devastated bond markets, delivering a one-two punch to people’s retirement accounts.
In 2022, one of only a few years on record when both equities and bonds both had negative average returns, the bond market had its worst year since at least 1928.
These violent gyrations from government crowding out the private sector, along with oppressive regulations, helped drive down the average 401(k) plan by almost 13%, about $17,000, in the first two years of the Biden administration. --->READ MORE HERE
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Americans trying to retire for the last two years have felt like Charlie Brown ready to kick the football.
They think their nest egg is large enough, but then another round of monthly inflation data shows the cost of living has risen once again.
That’s when President Joe Biden yanks the football away, and would-be retirees realize they can’t stop working yet.
Biden’s economic leadership has been wanting, to put it charitably.
When he took office, the economy was growing at a $1.5 trillion annualized rate and recovering an average of a half- million jobs per month.
Inflation was a mere 1.4%, lower than the Federal Reserve’s 2% target.
Just 18 months later, Biden managed to run up inflation to 40-year highs, with prices rising in a single month about as fast as they increased in the entire year before he took office.
Simultaneously, the economy contracted for two consecutive quarters—what we used to call a recession.
While inflation has come down from that breakneck pace, it is reaccelerating, and economic growth has been anemic.
The labor market is still missing between 4.5 million and 5.5 million workers, leaving employment far below its pre-pandemic trend.
Accounting for all these absent workers yields an unemployment rate that’s more than 6%. --->READ MORE HERE
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