{"id":2076087,"date":"2023-10-22T21:22:05","date_gmt":"2023-10-23T01:22:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/household-debt-hits-new-high-as-americans-struggle-to-stay-afloat-in-bidens-economy\/"},"modified":"2023-10-22T21:28:09","modified_gmt":"2023-10-23T01:28:09","slug":"household-debt-hits-new-high-as-americans-struggle-to-stay-afloat-in-bidens-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/household-debt-hits-new-high-as-americans-struggle-to-stay-afloat-in-bidens-economy\/","title":{"rendered":"Americans are drowning in household debt as they battle to survive in Biden&#8217;s economy."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhousehold-debt-hits-new-high-as-americans-struggle-to-stay-afloat-in-bidens-economy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2076087&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Under President Joe Biden, Americans are using their savings to sustain \u2062economic\u200b growth, according to experts.<\/h2>\n<p>Economic \u200bgrowth, as measured \u200bby \u2062Gross Domestic Product (GDP), has remained high at 2.1 \u2064percent \u2063for \u2063the \u2063second quarter of\u2062 2023, \u2062despite efforts by the Federal Reserve \u200cto control it. The main\u2064 driver\u200d of GDP \u200dis consumer spending, which has been increasing at the\u200c expense of average Americans&#8217; savings. This increase in\u200c consumption\u2064 is fueled by one-time windfalls from the government, bringing future consumption into \u200bthe present.\u200c However, experts \u200cwarn that this trend \u2063is not sustainable and will eventually catch up \u2064with households and businesses.<\/p>\n<p>The Personal Consumption Expenditure, which measures the amount Americans spend \u2062on consumer goods and services, has \u2064stayed slightly elevated \u200bat around \u200b68 percent\u2062 of \u2062GDP. This is \u200dhigher than \u200cthe average of 67 percent over the past decade. The increase in consumer spending \u2064is\u2064 due to\u2062 people\u2064 drawing down \u2062their savings to counter inflation, which has\u2063 been outpacing income growth.<\/p>\n<p>Personal savings have declined in \u200brecent months, falling from over\u200c $1 trillion in May to just $794.1 billion in August. This decline in savings \u2064is also impacting long-term economic growth, as it\u2064 is throttling investment. Real wages\u2062 have also declined since\u2062 Biden \u200btook\u200d office.<\/p>\n<p>The Biden \u2064administration has insisted that the economy is in good shape, attributing it to their economic policy, &#8220;Bidenomics.&#8221; However, many experts believe that the high-spending policies of Bidenomics\u2063 are the\u200c cause \u2062of the \u2062sustained\u2063 high inflation.<\/p>\n<p>Despite the Federal Reserve&#8217;s efforts to avoid a recession, there is a high probability of\u200c one in the near term. This is concerning because many families are entering the next recession with less savings and more debt. Household debt has reached a new high, with\u200c Americans owing $17.06 trillion, including $1 trillion\u2064 in \u2063credit card debt.<\/p>\n<p>Experts \u200dargue that savings \u200care positive for the economy\u2064 as they fuel capital investment and \u2062expansion. However, the decline in savings indicates that Americans may be relying on the government to bail them out in times of crisis.<\/p>\n<p>The White House did not respond to a\u200b request for comment on these concerns.<\/p>\n<p><em>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire\u200c service, is available \u200cwithout charge\u2062 to any <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/scotus-may-soon-face-emergency-appeal-on-trans-surgery-for-kids\/\" title=\"SCOTUS may soon receive urgent appeal on transgender surgery for minors.\">legitimate\u200d news \u2064publisher<\/a> that\u2064 can provide a large audience. All \u200drepublished articles must \u2063include our logo, our reporter\u2019s byline and their DCNF \u2062affiliation. For any questions about our\u2062 guidelines or partnering \u200bwith us, please \u2064contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/em><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/americans-burning-savings-keep-bidens-economy-afloat-experts-say\/\">Household\u2064 Debt Hits New High as Americans Struggle to Stay Afloat in Biden&#8217;s\u200c Economy<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n<p> <\/p>\n<h2> What\u2062 measures can be taken to achieve sustainable economic\u200b growth and reduce\u2062 reliance on personal savings<\/h2>\n<p><span>  M an average of 7.4\u2062 percent \u200dof disposable\u2063 income in May 2023 to 6.4 percent in June 2023. This decline \u200din \u200dsavings rate reflects the urgency among\u200b Americans \u2062to maintain their standard of living amidst rising prices and limited\u2064 wage growth.<\/p>\n<p>Under\u2063 President Joe Biden,\u200c the government has implemented various \u200deconomic stimulus measures to counter the\u200b impact\u2062 of the COVID-19 pandemic. These\u200b measures, such as direct stimulus payments and enhanced unemployment \u2063benefits,\u200c have provided a temporary boost to consumer spending.\u200c While these\u2062 actions have undoubtedly helped <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-meets-virtually-with-mexican-leader-on-immigration-ccp-virus-climate-issues\/\" title=\"Biden Meets Virtually With Mexican Leader on Immigration, CCP Virus, Climate Issues\">sustain economic growth<\/a>\u2064 in the short\u200d term, they have also led to a \u200dreduction in personal savings.<\/p>\n<p>Experts argue that the reliance on savings to fuel consumption is not a\u200d sustainable strategy for long-term economic \u2062growth. Drawing down savings to compensate for inflationary pressures may provide \u200ctemporary relief but undermines\u200b the potential for future \u2062investments and economic\u200d stability. Additionally,\u2064 this\u2064 trend places households and \u200bbusinesses\u2064 at\u2062 risk should\u2063 there be unexpected financial shocks or emergencies.<\/p>\n<p>Furthermore,\u200d the \u200dexcessive\u200b utilization of savings undermines the efficient allocation of resources within\u200c the economy. Instead of \u2062being channeled towards \u200cproductive investments\u200c or\u200d capital formation, these funds are rapidly consumed, leading to a distortion in resource allocation and\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/household-debt-hits-new-high-as-americans-struggle-to-stay-afloat-in-bidens-economy\/\" title=\"Americans are drowning in household debt as they battle to survive in Biden's economy.\">reduced long-term growth prospects<\/a>.<\/p>\n<p>The Federal Reserve has \u200craised concerns about the potential consequences of an overheated economy driven by excessive consumption. To curb inflationary pressures, the central bank has begun \u2062to\u2063 implement measures aimed at tightening monetary policy, \u2064such as raising interest rates\u2063 and reducing asset purchases.\u2062 However, these actions \u2063have not yet been robust enough to significantly dampen consumer spending.<\/p>\n<p>To <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-to-push-economic-agenda-in-philadelphia-amid-persistent-inflation-middle-east-crisis\/\" title=\"Biden to Address Economic Agenda in Philly Amid Inflation, Middle East Crisis\">achieve sustainable economic growth<\/a>, experts\u200b emphasize \u200dthe importance \u200cof addressing underlying structural issues. This includes promoting policies that boost income growth, reducing wealth inequality, and stimulating productive\u200c investments. Efforts should also be\u2063 directed\u200d towards addressing inflationary pressures \u2063and ensuring prudent fiscal\u2063 management to \u2063avoid excessive reliance on borrowing or deficit spending.<\/p>\n<p>President \u2064Biden&#8217;s administration has acknowledged the need for a more balanced approach to economic\u2062 growth. By focusing on initiatives such as infrastructure investment, job \u2062creation,\u2063 and research and\u200d development, the government aims to foster sustainable growth \u200bthat benefits all Americans. \u2064However, striking\u2063 the \u2063right balance between <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-ethics-review-fed-bars-top-officials-from-trading-individual-stocks\/\" title=\"After Ethics Review, Fed Bars Top Officials From Trading Individual Stocks\">stimulating economic activity<\/a> and maintaining fiscal responsibility\u2062 remains an\u2062 ongoing challenge.<\/p>\n<p>In conclusion, while the current economic \u200dgrowth under President Joe Biden has been supported\u2063 by increased consumer spending, driven\u2064 by the utilization of personal savings, this trend is not sustainable \u200bin\u200b the \u2062long run. Experts \u200dwarn that relying on savings to sustain economic growth can\u2062 result in adverse consequences for households and businesses. To achieve sustainable\u2062 and inclusive growth, efforts should be directed towards addressing underlying\u2064 structural issues, promoting income growth, and\u200d ensuring prudent \u2063fiscal management.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Under President Joe Biden, economic growth has been supported by Americans using their savings to purchase everyday goods. Experts told the Daily Caller News Foundation that Gross Domestic Product (GDP), a measure of economic growth, has remained consistently high at 2.1 percent for the second quarter of 2023.<\/p>\n","protected":false},"author":2181,"featured_media":2076088,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2076087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2076087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2181"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2076087"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2076087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2076088"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2076087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2076087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2076087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}