Politics

Biden’s Inflation Will Cripple Seniors

Biden

Biden’s unconstrained federal spending – $2 trillion pushed for needless COVID and unemployment checks, $2 trillion for “infrastructure” (only five percent “roads and bridges”), a total $6 trillion for 2022 – is creating Carter-like inflation pressures that will cripple seniors.

Biden and congressional Democrats spent more in the first two months of his administration than any president in recent history and now propose to spend a “record” $6 trillion in fiscal 2022 – creating mass debt, federalizing sectors from education to energy, and driving prices straight up. 

The Wall Street Journal soberly reported, “debt held by the public would rise to 111.8 percent in 2022, surpassing the level seen in the wake of World War II,” and “debt would continue to rise in the following years, reaching 117 percent of GDP in 2031.” Democrats would finance this mass debt with higher taxes; corporate bumped from 21 to 28 percent, capital gains from 23.8 to 43.4 percent, with other add-ons.  See, Biden Unveils $6 Trillion Spending Plan;9 Things You Need to Know About Biden’s “Infrastructure” Spending Plan.

The net effect of unconstrained federal spending and higher taxes is easy to predict. Post-COVID growth will taper, and markets grow jittery. More paper money will chase less real wealth, causing the dollar’s value to fall and inflation to pick up smartly. This is already happening. See, e.g., U.S. consumer prices soar again and push CPI inflation rate to 13-year high.

 Spin it any way you like, but inflation now approaches Carter levels, which triggered market fear, upward spiraling inflationary expectations (and union demands), downward spiraling employment (and recession), or “stagflation.” Last month saw the highest inflation number in a dozen years. See, e.g., United States Inflation Rate.

History and logic converge. Higher taxes will break corporate investment, hiring, wage, and income growth. When companies do not have money to invest, hire and grow – they do not do those things. Consumption (people buying things), employment, and corporate returns will all fall as real incomes, your purchasing power, and job security all decline.  

Biden does not want to admit the reality, but there is no free lunch. 

These things will sting the middle class and especially seniors on fixed incomes. While job worries will grow and corporate taxes get passed to consumers with less purchasing power, the real hit will be on Americans with variable interest rate loans – including mortgages and credit cards – and those living month to month on fixed incomes – chiefly seniors. 

How many seniors will suffer from Biden’s inflation gamble – the idea that Democrats can buy votes with federal giveaways before people catch on?  

In 2021, at least 65 million Americans get Social Security. Nine out of ten over 65 receive Social Security. Half of all married couples – and two-thirds of unmarried seniors – rely on Social Security for at least 50 percent of their income, while a quarter of all married and half of all unmarried seniors depend 90 percent on this fixed income.  See, e.g., Fact Sheet SOCIAL SECURITY.

In short, Biden’s inflation game is about to nobble, in many cases cripple, the primary income source for fixed-income seniors. Seniors who want to preserve their due take note. But it gets worse. 

Not only will seniors on fixed incomes have less purchasing power – as inflation explodes – but Biden’s immediate and out-year budgets threaten to accelerate Social Security’s insolvency. 

Without getting too deep on numbers, the May 2020 Trustees Report showed combined Old-Age and Survivors’ Insurance (OASI) and Disability Insurance (DI) depleted by 2035, without accounting for COVID’s calamity and Biden’s predictable “stagflation.” The next report will likely reflect a shorter solvency fuse and may miss declining payroll taxes from a stumbling Biden economy. See, e.g., What the 2020 Trustees’ Report Shows About Social Security; https://www.forbes.com/sites/bobcarlson/2020/04/22/the-pandemic-reduces-social-securitys-solvency/.   

Bottom line: Biden’s spending games the system, pretending to create money by fiat – to win votes in 2022. 

Reality is harsher. Biden’s inflation will sting the middle class and cripple seniors living on fixed incomes. It will ramp up mortgages, credit cards, and variable interest payments. 

All the while, tax increases will slow the economy. Biden is banking on Americans thinking federal money is free – it is not, never has been. It costs, and we are about to pay. 

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JOHN
3 months ago

This is a well crafted design by Communists with President Puss for Brains at the helm. Destroy the savings of the seniors and then starve them to death. No money to be saved or inherited…. ***poof*** NO FUTURE NO PURPOSE… misery and death. Just bodies working for THE STATE!

pcz
4 months ago

America you don’t need to look far to see what OBiden is doing to inflation. Not just the trillions he is putting in his and his other socialists pocket, but the cost of everything is rising. Housing, cars, groceries, gas, medications etc. And the idea that he told everyone no tax increase, who is paying the trillions of dollars to forgien lands. America you must wake up, homelessness will be rising for all of us fighting to save America. Adolph is in Washington people wake up before its too late.

JohnS
4 months ago

Look at your stock market statements. Biden and crew are destroying our retirement security. Stupid moves by the dems in power are aimed at exerting more government power over we the people. Chucky Schumer revealed the dems real goal. Change this country and the world to rule it according to their their liking.

Bill on the Hill
4 months ago

The O’Biden plan, ( his puppet masters ) has always been to bring America to her knees…The well planned plandemic was the perfect tool to gain complete control over a FREE society…The ” oligarchs ” i.e. look no further than Russia or Ukraine rake in ( steal ) outlandish amounts of money, i.e. typically laundered & made untraceable & live the posh life, completely unaffected by what is happening all around them…
We The People once again have a oligarch running the show out of DC. Earlier oligarchs were Biden himself as VP & now the faux president, Obama, Bush’s & the Clintons…George Bush comes to mind for some reason, back in 2019 the Bush Foundation received a ( 5 ) million dollar grant from China…The Clinton’s are far more ambitious with their Foundation & even hired their daughter Chelsea to run it at a multi-million dollar annual salary. Their ” pay to play ” scheme was known far & wide & yet they sit in their Westchester County mansion sipping on champagne like it’s just another day…
All of this madness started under Obama in earnest, all Americans lived through a long, grueling ( 8 ) years under this radical Islamic supporter & non-Christian administration…
Trump created the ( 4 ) years of economic prosperity we are currently enjoying, despite Sleepy Joe’s efforts of dismantling all of Trump’s accomplishments…
As the article states, we are about to pay dearly for all that FREE money being thrown about with reckless abandon by a senile old man that can’t remember what was said moments earlier…
God bless America…
Bill on the Hill… :~)

Gary1940
4 months ago

Stop the bus , I want off

K
4 months ago

There’s No Words That Can Possibly Be Used About What Biden’s Done!! I Just Hope ALL WHO VOTED FOR HIM GET HIT HARD IN THIS ECONOMY BIDEN’S GOT US INTO. NOT TO MENTION ALL THE OTHER NEGATIVE EXECUTIVE ORDERS HE’S DONE!!!WORSE PRESIDENT EVER! We Were Worned By PRESIDENT TRUMP And It’s All Come True!!

PaulE
4 months ago

In order to bring about the “fundamental transformation of the United States” that Obama first promised back in 2008, it is necessary to completely implode the existing economic and governmental systems holding the republic and society in place. Destroying the overall economy, which is why the so-called Covid emergency was deemed so useful and intentionally dragged out for so long, would allow the socialist movement within our government the kind of sweeping, emergency powers to institute the kind of unilateral changes they need to bring that about.

The prospect of runaway inflation and the devaluation of the currency has been a hallmark of socialism since the beginning of the ideology. So are crippling taxes and a steep drop in the standard of living for the average person living in the country where socialism takes root. Of course seniors will be impacted, along with everyone else but the small segment of society that makes up the ruling elite. That’s how this always plays out. It’s not like we don’t have literally dozens of examples to reference on the matter. That there isn’t much more concern and meaningful physical action to reverse the course we’re currently on is far more troubling than the fact that we are on an obvious collision course with a known very bad ending. It appears apathy and willful ignorance knows no bounds.

Max
4 months ago
Reply to  PaulE

Agree with your statement, the middle class will be decimated with lots of poor and very few rich. Look at history, this is how the Roman empire fell.

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