President Joe Biden, during an interview with CNN’s Erin Burnett, stated that inflation was at 9% when he assumed office, though official statistics show it was actually at 1.4% at that time. He defended his economic policies, asserting that his administration had reversed economic downturns, despite ongoing high inflation and interest rates.
The inflation rate surged to a peak of 9.1% in June 2022, 17 months after Biden took office, and remained at 3.5% as of March. Critics, including some prominent Democratic economists, attribute the rapid inflation to substantial government spending during Biden’s first year, particularly pointing to the $1.9 trillion stimulus law passed in March 2021, which was aimed at countering pandemic effects through demand-side stimulus rather than investment.
Economic data indicates significant changes in the cost of living and borrowing since Biden’s tenure began. The average prices of goods and services have increased by 19%, home buying costs have doubled in terms of monthly expenses since before the pandemic, and real income adjusted for inflation has declined. Consumer confidence is reportedly near a two-year low, with economic growth also falling short of expectations.
Credit card debt has risen by 38.7% under Biden’s administration, with 65% of Americans reportedly living paycheck-to-paycheck. Home mortgage rates have also climbed sharply from 2.65% to over 7% for a 30-year loan. The Federal Reserve has responded to the inflation crisis by significantly raising interest rates.