William Katz:  Urgent Agenda

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THE ECONOMIC REALITY:  Inflation plus recession are hitting Americans hard.  The proof is there.  From the New York Post: 

Have you taken a peek at the balance in your 401(k) retirement accounts lately? Here’s our advice: Don’t bother. It will ruin your whole day, week and month.

Here’s why: We’ve now had seven straight months of 8%+ inflation. A year ago we were assured by the White House economic wizards that these rapid price increases in everything from groceries, to rental cars, to gasoline at the pump, to health insurance, were merely “transitory.” Whoops.

The most immediate sticker shock from Bidenflation, of course, has been to shrink real take-home paychecks of workers. We have calculated that over the past 20 months, this rise in consumer prices over wages means that the average family in America has lost nearly $6,000 in purchasing power. This from the Lunch Bucket Joe president who promised to help boost the incomes of the middle class. When, exactly?

But this pay-cut effect on family incomes is only part of the curse of runaway inflation.

We’ve just completed an analysis of how the highest inflation rate in almost 40 years has impacted the retirement funds of ordinary Americans. Here is what we found.

Not surprisingly, since President Biden took office, monthly savings have collapsed, falling 83%. (We could never understand how Biden could say with a straight face that Americans are saving more. His “transformation” of the US economy has had just the opposite effect.) Many millions of Americans who are living paycheck to paycheck just don’t have the money after paying the inflated bills to save much.

But to add insult to injury, even what has been already saved and invested by older Americans over past years and even over several decades has been erased from these accounts.

Thanks to the thief of inflation.

COMMENT:  And if we go into a full recession, things can get much worse.  People can turn desperate, leading to an ugly, tense, and even more violent society. 

Three weeks from today, Americans will decide which party in Congress they prefer in this difficult time.

October 16-17, 2022