Record inflation curtails saving potential of US population

Washington: The common US citizen is feeling the heat of the unprecedented inflation given the incorrect policies of President Joe Biden. It has been exposed that US citizens have been forced to spend nearly $114 billion from their Rainy-Day Savings’. At the same time, a report of the Federal Reserve states that an ordinary US citizen can save a meagre 5% of his total earnings at the end of each month, given the inflation rising per month. Only last month, President Biden had claimed that the savings of an ordinary citizen have increased and loans have reduced.

Moreover, the inflation index rose to 8.6% in May. This is the highest in the United States since 1981. There has been a record increase in the rates for all the essential commodities, including fuel, house prices, energy, clothing, food grain and vegetables. Fuel rates have increased by nearly 50% and the electricity bills have increased by 30%. House prices have increased by 20% and house rents have increased by more than 4%.

It has been exposed that the Biden administration’s faulty policies and the Russia-Ukraine conflict are responsible for this spurt in inflation. Moreover, inflation is consistently rising ever since Biden took over as President. The faulty decisions taken by the Biden administration regarding fuel, internal expenditure and other schemes are responsible for this inflation. But the administration, including President Biden, is unwilling to accept the fact.

A few months ago, Secretary of Treasury Janet Yellen and Jerome Powell, chief of the Federal Reserve, had stated that inflation is a temporary phase. But they have been forced to retract their statements and the concerned official and the secretary has accepted their mistake. Although this confession has surfaced, the heat of inflation faced by the US population has not reduced. Instead, the common population is forced to spend a significant chunk of its saving.

As per the information for December 2021, the savings of the US population stood at $27 trillion. It has been observed that there has been a reduction of nearly $100 billion in savings. As per the information shared by the Federal Reserve Economic Data, the US population is forced to spend almost $114 billion out of its savings. There is an increase in Credit Card debts, which has reached $1.013 trillion. Financial institutions informed that the average balance in the savings accounts of the common US citizen has been reduced by $9,000.

The discontent in the US population is rising given the hits taken due to the faulty policies of the Biden administration. In a recent survey, 88% of the participants said that the country is on the wrong path. Whereas 54% of the participants claimed that the US middle class has not benefitted in any way due to the Biden administration’s policies.