A recent survey found that almost half of Americans consider themselves broke, while two-thirds consider themselves to be living paycheck to paycheck. Politicians would like to blame you and how you manage your personal finances.
But big government policies that caused record high inflation and ever increasing costs for gas, groceries, and rent is the real culprit of why families are really hurting right now.
We see and feel the pinch of inflation firsthand every time we fill up the tank or head to the store. Families still spend more even when trying to cut costs by picking up quick meals at fast food restaurants.
Fox Business recently reported that the typical U.S. household paid $213.00 more per month in January 2024 to purchase the same goods and services they purchased one year before.
That’s more than $2,500 extra in expenses every year, while our paychecks stay the same.
On average, people are paying $605.00 more per month for the same things they were purchasing two years ago, and $1019.00 more compared to three years ago.
How folks manage their money isn’t the problem. It would have to be the world’s largest coincidence if everyone in America struggled to pay bills at the same exact time. Mismanagement of the economy by elected leaders is to blame.
Point blank: government mismanagement is the cause of record high inflation.
Relying on our enemies and bad actors for oil is one factor. The Bureau of Labor Statistics points out that “energy price shocks were the primary cause of the high inflation rates from late 2021 to the middle of 2022.”
The American economy tanked right after Joe Biden declared war on the oil and gas industry.
When you combine these hostile energy policies with out-of-control government spending that was further driven up trillions of dollars by the infrastructure bill and the so-called Inflation Reduction Act, you see that the government has created a recipe that leads to the kind of pain that we have been experiencing over the last three years.
During this time, average salaries have not kept pace with inflation, and household debt has risen to an all-time high of $17.3 trillion. People are maxing out credit cards just to survive.
Even more damaging to the economy: the government sends a lot of taxpayer money overseas. For example, the United States has spent $175 billion, over $500 per citizen, on Ukraine alone. Even if you think spending such a staggering amount is a good idea, the Biden administration’s approach to Russia with regard to sanctions appears to be harming our own country. more than it is harming them.
Instead of coming to the U.S. hat in hand to ask that we reconsider these sanctions, Russia worked with China and other nations to form BRICs - an economic alliance of member countries that have a combined population of 3.5 billion people (45% of the world population) and combined economies of more than $28.5 trillion, representing about 28% of the world’s economy.
Although not all BRICs nations are hostile to the U.S., there nonetheless remains speculation that the ultimate goal of BRICs countries is to economically rival western nations, which are led by our great nation.
One example of this may be found in the decision of BRICs member Saudi Arabia’s decision to not renew its 50-year petrodollar deal with the United States when it expired on June 9, 2024.
As MSN stated, “this latest development signifies a major shift away from the petrodollar system established in 1972, when the U.S. decoupled its currency from gold, and is anticipated to hasten the global shift away from the U.S. dollar.”
Saudi Arabia is also participating in a project that would enable digital currency transfers across borders that could rival SWIFT, the banking transfer system used by the U.S. and other western nations.
All of these actions highlight that we are living in a rapidly changing world, and I worry that the U.S. government is not prepared to adapt as these changes take place. The potential shift away from the U.S. dollar is of particular concern.
Because the U.S. and the dollar have been seen as strongholds of safety and security for generations, people have always been willing to invest in U.S. debt. Unfortunately, given the changes that we are seeing across the globe, combined with the lack of responsibility being displayed by our politicians as they continue to run up debt while refusing to address the underlying causes, I fear that this could change.
There is a rising chorus of experts, including FED Chair Jerome Powell, saying that the spending and debt path of the United States is unsustainable. Put another way, they believe that a day of reckoning is coming if we don’t take action soon to curb spending and begin to lower our debt.
I believe our rapidly changing world should add a sense of urgency to politicians to reduce the national debt.
Although the bulk of our almost $35 trillion debt is held within the U.S., it is also true that we owe trillions to other countries. What if they decide, in a changing world, that there are more safe and secure places to invest their money than in U.S. treasuries? The answer is that such a decision would put the United States and our economy, meaning all U.S. citizens, in a world of hurt far greater than what we’re already going through right now.
As someone who has been in business for over 50 years, I have learned that there are some things that you can’t control, but that you should work to control the things you can.
Although we can’t control all that is happening in the world, we can control our spending and debt, and it is past time for us to do so. I have joined others, including former U.S. Comptroller General David M. Walker, to design a document that seeks to push our elected leaders to take steps to bring sanity, especially fiscal sanity, back to our country. It is called the “Contract From the American People.” Please visit www.JoeFromTexas.com to read the contract. If you agree with it, please sign it and join us in this effort. The urgent time to act is now.