President Joe Biden and Vice President Kamala Harris are already on the campaign trail touting the so-called success of their economic plan, which they refer to as Bidenomics. However, the Fitch Ratings’ decision from earlier this month to downgrade the U.S. government's credit rating from AAA to AA+, the first downgrade since 2011, shows our economy has not been mended and restored quite yet.
Bidenomics have been disastrous for the American people and is pushing our country toward bankruptcy. What Bidenomics has really brought us is the worst inflation rate in 40 years, the highest deficit in American history and an economy where the average Americans’ real wages are declining rather than improving. In addition, our economy has also struggled to return to the booming pre-pandemic employment levels. In fact, last month fewer jobs were added than economists expected, and labor force participation has remained flat for five months in a row.
Due to Bidenomics, the American people are now paying the most for groceries, household items, fuel, homes and just about everything else than they have in 40 years. Indeed, since President Biden has taken office, prices on everything have risen at an average of 16.6 percent. This is costing the average American family nearly $10,000 a year.
President Biden and congressional Democrats’ spend now, pay later scheme has not only led to record-high inflation, but it has also increased the 10-year spending trajectory by $10 trillion, causing the United States to reach the statutory debt ceiling more quickly than expected. President Biden and Democrats’ refusal earlier this year to address the debt limit crisis almost put our country in a position to disastrously default on our debts. Their initial refusal to include any constraints to spending and needless delays to come to the table and work out a sensible and responsible deal to raise the debt limit certainly led to Fitch’s downgrade of the United States’ credit rating.
Now, in order to cool inflation, the U.S. Federal Reserve has been forced to turn to raising interest rates. However, while they are having some effect, they are also making the deficit worse due to the increase in cost to pay interest on the debt. These high interest rates are also putting U.S. banks in danger by pushing up the cost of maintaining deposits and could even lead to a recession, which economists are predicting to occur early next year.
Republicans now in control of the House of Representatives are trying to rein in the out-of-control spending and inflation from Democrats that were in control of both chambers of Congress and the White House for the past two years. However, we cannot truly make significant changes in the trajectory of the deficit without making reforms to Social Security and Medicare. Congress has a duty to preserve these programs for those who have paid into them during their working lives, but without real reforms, these funds will run dry.
Saving Social Security and Medicare is something both sides of the aisle must get serious about. That is why earlier this year, I reintroduced the Bipartisan Social Security Commission Act that would require lawmakers to form a commission and develop bipartisan solutions to avoid these critical programs from going bankrupt. This legislation, modeled after the 1983 Social Security Commission, would create a bicameral and bipartisan commission, chaired by a presidential appointee, to ensure that Social Security is fully funded for decades to come.
According to a CBS poll from July, 70 percent of Americans say their income has not kept up with inflation, 65 percent say prices have gone up in the past few weeks and 65 percent would rate the economy as “bad.” More evidence points to a weak and struggling economy than otherwise. Instead of touting the disastrous “Bidenomics” plan, the president should listen to these Americans and change course.