WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement December 11th after the Bureau of Labor Statistics released the November jobs report:
“Washington Democrats are running away from the White House’s ‘Bidenomics’ policy and public relations campaign, but unfortunately the American people are stuck holding the bag. For Democrats to claim credit for an economy with skyrocketing prices, high interest rates, and a shaky future shows how little they care about the plight of working families struggling in the Biden economy. Ramming through the policies that have caused that fallout was terribly irresponsible and an injustice to working families. Today’s report is likely inflated because of the return of striking workers, including auto workers fed up with Democrats’ favoritism toward electric vehicles. Employers are feeling the squeeze of high interest rates to combat the Biden inflation crisis, forcing them to stop hiring, or in some sectors, lay off people right before Christmas.
“Maybe the biggest shock of all is retailers cutting jobs, not adding jobs, in the middle of the busiest shopping season. Clearly, family budgets are overwhelmed by high prices on everyday necessities.”
Key Background
- Retailers shed 38,000 jobs last month and they announced plans to hire 573,000 seasonal workers, the lowest in a decade and 60 percent less than 2021
- U.S. companies announced 45,510 job cuts in November
- Prices have increased 17.6 percent since President Biden took office.
- Real wages and benefits have fallen 3.7 percent since President Biden took office.
- Inflation outpaced wages for 26 straight months of Biden’s presidency.
- Mortgage rates reached a 23 year high of 7.8 percent in October. The average monthly mortgage payment has increased by $1,050 and is 93 percent higher than when President Biden took office in January 2021.
- Credit card interest rates are at the highest level in nearly three decades, while consumer credit debt has reached an all-time high of just over $1 trillion.
“Bidenomics” In Action
- Working Americans Living Paycheck to Paycheck: The poorest 20 percent of Americans spend 80 percent of incomes on basic needs like food and housing.
- More Americans Earning Less: Median household income fell in 2022 for the third year in a row. 17 states saw median income fall, while only five states saw median income grow.
- Middle-Class Families Have Run Out of Savings: Except for the wealthiest 20 percent, all other income groups have less cash now than before the pandemic.
- Families Falling Behind on Bills: Credit card delinquencies rose in the second quarter to the highest levels in 11 years and car loans delinquency is at the highest levels on record because of rising interest rates.
- Higher Income Needed to Buy a Home: An American needs a salary of $114,627 to afford the median-priced home, up 15 percent from last year.
- Rising Foreclosures: Almost 125,000 properties were foreclosed on in the third quarter of this year, a 34 percent increase from last year and a stunning 28 percent increase from the second quarter.
- Senior Poverty Rising: In 2022, 14 percent of seniors were living in poverty, a three percentage point increase.