U.S. Sen. Rick Scott continues to point out that the economic miracle that President Joe Biden continues to take credit for is a mirage.
Each week, the Florida Republican notes how inflation is sapping the economic gains Biden believes are signs of strength.
Last Friday, Scott analyzed a report released by the Bureau of Economic Analysis about Americans’ personal consumption and spending.
A few statistics in the report are noteworthy – especially since this reflected spending during the Christmas season.
According to the BEA, personal income nationally increased by almost $71 billion in December. That equated to a gain of 0.3 percent. Personal disposable income, or what is left over after taxes, increased by about $40 billion, or 0.2 percent.
Yet real disposable income – that amount left over after accounting for both taxes and inflation – actually decreased by 0.2 percent. And real personal consumption expenditures, or PCE, or what people spent their money on after allowing for taxes and inflation, actually fell by 1 percent.
In other words, on paper Americans had more money but it was eaten away primarily by inflation, and accordingly, people spent less.
Concerning real PCE, the BEA noted, as spending slowed, people opted not to buy “goods,” which were defined as recreational goods and vehicles, “other” nondurable goods (such as newspapers, household supplies, games, and toys), as well as home furnishings and durable household equipment, like appliances.
Meanwhile, prices continued to spiral upward.
The PCE price index for December was 5.8 percent about December 2020, which reflected spikes in costs for both goods and services.
But the report notes energy prices jumped 29.9 percent, while food prices rose 5.7 percent.
“Excluding food and energy,” the BEA stated, “the PCE price index for December increased 4.9 percent from one year ago.”
Sen. Scott pointed out that the 5.8-percent spike in the PCE price index was the highest in 40 years. It is, he said in a statement, “a clear indication that Democrats’ reckless, socialist spending agenda is only further fueling President Biden’s raging inflation crisis.”
“We’ve now seen a year of America under Joe Biden’s leadership and one thing is abundantly clear: families are far worse off now than they were then. Inflation is at a 40-year high and still raging higher. Poor families, like mine growing up, can’t get by. Millions more are struggling to make ends meet while store shelves are empty. More folks are relying on food banks and it’s getting harder and harder to help them as prices climb,” Scott said.
“This is Joe Biden’s America. This is what happens when you foolishly push a socialist agenda, pay people not to work, waste trillions of dollars in taxpayer money and then lie to the American people and tell them everything is okay. It’s time for Joe Biden to wake up, listen to the American people, remember that he is the President of the United States and lead. Our country can’t afford another year of his miserable missteps and failures.”