Sunday, July 14, 2024

Sen. Kennedy: Washington’s Spending Results in Lower Real Wages for Americans

by BIZ Magazine

WASHINGTON – Sen. John Kennedy (R-La.) addressed the Senate floor, shedding light on the adverse effects of President Joe Biden’s fiscal policies, leading to lower real wages, increased credit card debt, and diminishing savings for Americans.

Kennedy emphasized the impact of what he referred to as “Bidenomics and inflation,” particularly in his home state of Louisiana. He pointed out that the average family making $80,000 a year in Louisiana would face an additional $800 monthly due to inflation, amounting to an extra $10,000 annually.

“As a result of Bidenomics and inflation, in my state, the average family making $80,000 a year is going to have to pay an extra $800 a month because of inflation. That’s an extra $10,000 a year…That’s happening right now to millions of Louisianians and millions of Americans. What are you going to do?” Kennedy questioned.

Addressing the notion of a pay raise, Kennedy argued that inflation quickly erodes any wage increases. He highlighted the financial strain faced by families grappling with the additional cost of living, prompting them to turn to borrowing, particularly through credit cards.

“A pay raise doesn’t work. It’s great to have, but inflation eats it up and then some. Well, ok, that family’s still got to find $10,000. What do you do? Well, you go borrow the money, and that’s what’s happening: Credit card debt. Buy now, pay later. Or other types of loans,” Kennedy explained.

Drawing on statistics, Kennedy noted a substantial increase in credit card spending, with figures from the third quarter of the year revealing a 9% rise at Chase Bank and a 15% increase at Wells Fargo.

“People are using credit cards. They are charging more and more, and they’re paying less and less on those credit cards. They’re getting deeper, deeper into the hole,” he remarked.

Kennedy also highlighted the trend of Americans dipping into their savings to cope with inflation, evident in a 3% year-over-year decrease in personal deposits at Chase Bank.

“My point, Madam President, is that these actions that are taken in Washington, D.C. have real-life consequences for average, everyday American families on fixed incomes…People are having to borrow, and people are having to raid their savings, and it is clearly a cancer on the American dream,” concluded Kennedy.

Note: This article is based on remarks made by Senator John Kennedy on the Senate floor.

You may also like

Update Required Flash plugin