Thursday, April 18, 2024

Sen. Kennedy Addresses Inflation Impact on American Families

by BIZ Magazine

WASHINGTON – In a recent address on the Senate floor, Senator John Kennedy (R-La.) highlighted the detrimental effects of inflation resulting from President Biden’s spending, emphasizing how it has led to lower real wages, diminished savings, and increased credit card debt for Americans.

With the latest inflation figures indicating a persistent rise in prices, Senator Kennedy pointed out that Louisianians are grappling with the burden of approximately $800 per month in additional expenses compared to when President Biden assumed office.

“Since President Biden has been president, we’ve experienced 17% inflation—that’s how much prices have gone up on average,” stated Senator Kennedy, illustrating the economic challenges faced by typical middle-class families.

Using a hypothetical scenario, he described the predicament of an average Louisiana middle-class family earning $80,000 a year, breaking down the impact of inflation on their budget.

“As a result of Bidenomics and inflation, 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,” he explained, highlighting the strain on fixed incomes.

Acknowledging that some employers have granted pay raises, Senator Kennedy underscored the importance of evaluating real wages after accounting for inflation. He displayed a chart depicting the decline in wages after inflation during President Biden’s term, emphasizing that pay raises are often insufficient to counteract the impact of rising prices.

“A pay raise doesn’t work. It’s great to have, but inflation eats it up and then some,” remarked Senator Kennedy.

Addressing the coping mechanisms employed by Americans, he raised concerns about the surge in credit card spending, citing statistics from Chase Bank and Wells Fargo indicating a significant increase in credit card usage.

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

Furthermore, he highlighted the trend of depleting personal savings, revealing a 3% year-over-year decrease in personal deposits at Chase Bank. Senator Kennedy characterized these actions as a response to the financial strain caused by inflation, referring to it as a “cancer on the American dream.”

As inflation continues to be a pressing concern for American households, Senator Kennedy’s remarks shed light on the urgency of addressing the economic challenges faced by citizens across the nation.

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