Staff Reports
The Federal Reserve's recent release of the Survey of Consumer Finances reveals a growing sense of economic pessimism among minority communities in the United States. While the nation as a whole experienced an increase in wealth from 2019 to 2022, driven by factors like rising home prices, stock market gains, and government stimulus, this economic growth has not been evenly distributed among different demographic groups.
‘Bidenomics’ Fueling Economic Pessimism Among Minorities as Incomes Fall, New Fed Data Show https://t.co/AADx1lCoJw
— The Epoch Times (@EpochTimes) October 24, 2023
According to the survey, the typical U.S. household's real net worth increased by 37 percent during this period. However, this growth was not shared equally among all racial and ethnic groups. While white households saw a modest 1.3 percent increase in income, Black and Hispanic households experienced income declines of 1.6 percent and 1.1 percent, respectively. Moreover, wages for all Americans failed to keep pace with inflation. The study also found that the real average liquid wealth, which includes assets like cash, checking, and savings accounts, did not see significant growth for minority families.
The report suggests that minority households derived more benefit from crisis-era stimulus and relief efforts, such as stimulus checks and enhanced unemployment benefits. However, with the expiration of these programs, families now face above-average inflation rates that erode their purchasing power. This has led to a widespread sense of economic pessimism, particularly among non-white families. Data from the Census Bureau indicates that despite the wealth gains during the pandemic, the poverty rate in the country has risen to 12.4 percent.
President Joe Biden has been promoting his economic vision, often referred to as "Bidenomics," but it appears that many voters, especially in swing states, remain unconvinced. A Morning Consult report reveals that approximately three out of four swing-state voters believe that the U.S. economy is on the wrong track under President Biden. Some even reported that their financial situation was better during the previous administration under President Donald Trump. Half of these swing-state voters express doubts about the effectiveness of Bidenomics and trust Trump more to handle economic issues.
In the face of this skepticism, some economists warn that underlying economic issues are beginning to fester. While headline economic indicators may appear positive, real wages are declining, credit card debt is on the rise, and the savings accumulated during the pandemic are dwindling. It remains uncertain how President Biden's economic policies will address these concerns and alleviate the economic pessimism prevalent among minority communities and the general population.
