Biden/Obama Inflation Persists
The American economy continues to suffer from the aftershocks of the Biden/Obama era of inflation, massive federal spending, monetary experimentation, and soaring costs for ordinary working Americans.
Inflation is not merely an abstract statistic produced in Washington. Families experience it every day at the grocery store, at the gas pump, when paying insurance premiums, when buying a vehicle, and especially when trying to purchase a home. Perhaps the greatest economic injustice today is the continuing cost of credit caused by the Obama/Biden Democrat Federal Reserve.
While consumers in a number of developed economies can obtain substantially lower borrowing rates, American families continue to confront mortgage rates around 7% in many circumstances. At these levels 100% higher than other nations, millions of younger and working-class Americans are effectively priced out of homeownership. A house that might have been affordable several years ago can now require hundreds or even thousands of dollars more each month simply because of financing and urban democrat’s regulatory costs.
Meanwhile, credit-card interest rates commonly run above 22%, with many consumers facing APRs around 24% or 25% or even higher.
Think about what these high democrat interest rates mean. The working poor, young families, small-business owners, teachers, nurses, tradespeople, and ordinary consumers who need credit the most are paying some of the highest interest rates in modern American history. At the same time, large financial institutions can benefit enormously from the spread between their cost of capital and what consumers pay to borrow.
Washington calls this monetary policy. Millions of Americans experience it as a theft of wealth from main street America.
The Obama/Biden Federal Reserve’s prolonged high-interest-rate environment has therefore created an extraordinary contradiction. Policymakers claim they are protecting Americans from inflation while simultaneously imposing historically expensive financing costs on the very families inflation has already hurt.
Higher interest rates do not manufacture another barrel of oil. They do not build another house. They do not produce fertilizer, electricity, automobiles, food, steel, aluminum, or semiconductor chips. When inflation is driven substantially by shortages, regulation, energy costs, supply-chain problems, government spending, or inadequate productive capacity, making mortgages and credit cards more expensive does not necessarily solve the underlying problem. It can simply make Americans poorer.
There is also an increasingly obvious generational problem. Older Americans who purchased homes when prices and mortgage rates were lower may be sitting on enormous amounts of home equity. Younger Americans are confronting high home prices combined with high borrowing costs. The result is an economy in which ownership and wealth creation become increasingly difficult for the next generation.
America should be asking a different question: Why should productive citizens tolerate a financial system in which ordinary families pay 7% mortgages and 24–25% credit-card rates while giant banks and financial oligarchs generate enormous profits? Meanwhile, all other civilized nations are charging 1/2 the rates that the Bureaucrats and Progressive/Liberals are charging in America.
The Federal Reserve is supposed to serve the American economy—not create inflation and a permanent high-interest-rate economy that disproportionately rewards lenders and punishes borrowers.
The solution should focus on productivity, abundant energy, increased housing supply, lower government waste, stronger domestic manufacturing, technological innovation, competitive financial markets, and policies that increase the supply of goods and services.
America cannot borrow its way to prosperity, but neither can it achieve prosperity by making productive workers, teachers and Union members pay extraordinary lending rates merely for access to homes, automobiles, education, and working capital.
The objective should be simple: lower inflation, lower borrowing costs, greater production, greater productivity, and greater opportunity for working Americans.
After 18 Wars of Obama, Bush, Biden and Clinton, they wasted $40 trillion dollars. Thus, it is time to fight for fair treatment of workers and world peace.
U.S. 30-year fixed-rate mortgages hover around 7.5%, and credit card APRs average roughly 24% to 25% broadly (with fair-to-poor credit tiers stretching into the 25% to 30%+ range).
By comparison, average mortgage rates in most civilized major international economies—such as parts of the Eurozone (e.g., France, Germany, Spain, and Italy)—sit 50% lower, often ranging between 3% and 4%, which is roughly half the cost of U.S. home loans.
In sum, the democrats are trying to crash the economy, but it is mainly hurting women and minorities in big cities across the USA.
