No, You’re Not Better Off Now Than Four Years Ago
In the closing moments of the final presidential debate just days before the 1980 election, Republican candidate Ronald Reagan posed a question to the American people that has since become a defining standard in every election.
Looking straight into the camera and into the eyes of millions of voters, Reagan asked, “Are you better off than you were four years ago?”
Ask yourself: Is it easier for you to go and buy things in the store than it was four years ago? Is there more or less unemployment in the country than there was four years ago? Is America as respected throughout the world as it was? Do you feel that our security is as safe, that we are as strong as we were four years ago?
If you answer all of those questions ‘yes,’ then your choice is clear. But if you don’t agree, if you don’t think the path we’ve been on for the last four years is what you want for the next four, then you have another choice.
Reagan’s question resonated with the American people, and he won the presidency in a landslide.
Now, as President Joe Biden marks three years in office at the start of another presidential election year, Reagan’s question is once again relevant. Unfortunately, it is painfully clear that for many, the answer is no, they are not better off than they were four years ago.
In January 2020, a year before Biden took office, the average 30-year fixed-rate mortgage was 3.72 percent, with an average monthly payment of $1,134. The average home price was $246,334.
Today, due to Federal Reserve interest rate hikes, the average 30-year fixed-rate mortgage is 7.06 percent, with an average monthly payment of approximately $2,317. The average home price has skyrocketed to $402,600 or more, making homeownership increasingly unaffordable.
The cost of car ownership has also risen significantly. The average price of a new vehicle is now $48,008, up from $38,000 four years ago. The average used car price is a staggering $27,000. The average monthly payment for a new car is $726, while for a used car it is $533. In January 2020, the average monthly payment was $557 for new vehicles and $397 for used ones.
Gas prices have also soared, with regular unleaded costing $3.08 per gallon. Filling up an average 16-gallon tank now costs $49.28, compared to $40.16 four years ago.
Perhaps the most noticeable impact of inflation is felt at the grocery store, where food prices have skyrocketed. The average American family now spends $270.21 per week on groceries, a significant increase from the $160.35 per week spent four years ago.
The Massive Increase in Cost of Living
According to a Republican analysis of government data, the typical American household needs to spend an additional $11,434 annually just to maintain the same standard of living as in January 2021. This translates to an extra $952.83 in expenses every month, or $31.30 per day. These costs are the result of rising inflation under Biden’s administration.
Looking at the Consumer Price Index, CNBC analyst Rick Santelli noted that it now takes $1.19 of November ’23 dollars to buy what a dollar could buy before the COVID-19 pandemic. This demonstrates the significant increase in the cost of living over the past four years.
These numbers may be difficult to fully comprehend, but imagine having to cover an additional $952.83 in expenses every month. It’s a burden that many households are facing due to inflation.
The ultimate answer to the question of whether Americans are better off than they were four years ago is a resounding no. The cost of living has significantly increased under Bidenomics, and this will undoubtedly be a crucial factor in the upcoming 2024 election.
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How have mortgage rates and home prices changed over the past four years, and what impact has this had on homeownership affordability?
In the closing moments of the final presidential debate just days before the 1980 election, Republican candidate Ronald Reagan posed a question to the American people that has since become a defining standard in every election. Looking straight into the camera and into the eyes of millions of voters, Reagan asked, ”Are you better off than you were four years ago?”
Reagan’s question resonated with the American people, and he won the presidency in a landslide. Now, as President Joe Biden marks three years in office at the start of another presidential election year, Reagan’s question is once again relevant. Unfortunately, it is painfully clear that for many, the answer is no, they are not better off than they were four years ago.
One of the key indicators of economic wellbeing for many Americans is the housing market. In January 2020, a year before Biden took office, the average 30-year fixed-rate mortgage was 3.72 percent, with an average monthly payment of $1,134. The average home price was $246,334. Today, due to Federal Reserve interest rate hikes, the average 30-year fixed-rate mortgage is 7.06 percent, with an average monthly payment of approximately $2,317. The average home price has skyrocketed to $402,600 or more, making homeownership increasingly unaffordable.
The cost of car ownership has also risen significantly. The average price of a new vehicle is now $48,008, up from $38,000 four years ago. The average used car price is a staggering $27,000. The average monthly payment for a new car is $726, while for a used car it is $533. In January 2020, the average monthly payment was $557 for new vehicles and $397 for used ones.
Gas prices have also soared, with regular unleaded gasoline averaging $3.40 per gallon, compared to $2.60 per gallon four years ago. This increase in transportation costs puts an additional burden on American families who need to commute to work or transport their children to school.
Furthermore, inflation is eroding the purchasing power of the average American. Prices for everyday goods and services have increased, making it more difficult for families to make ends meet. From groceries to healthcare, the cost of living has been steadily rising, while wages have failed to keep up.
While some may argue that these economic challenges cannot be solely attributed to the current administration’s policies, it is clear that many Americans are feeling the strain of increased costs and diminished purchasing power. For those who were already struggling to make ends meet, the last four years have not provided the relief they were hoping for.
As the 2024 presidential election approaches, the American people will once again be faced with Reagan’s iconic question: Are you better off than you were four years ago? Voters must carefully evaluate the impact of the current administration’s policies on their financial wellbeing and decide whether a change in direction is needed. The answer to this question will undoubtedly shape the outcome of the election and the future of the country.
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