The Federal Reserve Bank of New York recently released its latest report on household debt, and the results are alarming. The report reveals that total household debt in the United States increased by a massive $148 billion in the first quarter of 2023, reaching an all-time high of $17.05 trillion. This is a sharp rise of $2.9 trillion since the end of 2019 and is a direct result of President Biden’s disastrous economic policies.
The report shows that mortgage balances experienced a modest increase of $121 billion, bringing the total to $12.04 trillion by the end of March. This might seem like good news to some, but it’s not. Under President Biden’s policies, mortgage originations have slowed significantly, resulting in a decline in new home purchases and the construction of new homes. This has caused the housing market to suffer, and many Americans are struggling to purchase their first homes.
But while mortgage balances increased, credit card balances remained flat at $986 billion. This is further proof that Americans are not spending as much as they used to, which is a direct result of President Biden’s failed economic policies. Biden’s massive spending plans, coupled with his reckless monetary policies, have caused inflation to skyrocket, making it harder for Americans to make ends meet. Many Americans have cut back on their spending, and as a result, credit card balances have remained stagnant.
Auto loan balances, on the other hand, rose by $10 billion, despite the usual trend of first-quarter declines. This is due to Biden’s misguided policies that are aimed at increasing electric vehicle sales, which has driven up the cost of gas-powered vehicles. The average American can no longer afford to buy a new gas-powered car and is thus forced to take out an auto loan to purchase an electric vehicle that they don’t want or need.
“Americans are drowning in credit card debt as chronic inflation makes the cost of everyday necessities more expensive.”
— House Republicans (@HouseGOP) May 15, 2023
The report also shows that student loan balances saw a slight increase, reaching a staggering $1.60 trillion. This is a direct result of President Biden’s promises to forgive most Americans’ student loan debt, which has led many students to borrow more money than they can afford to repay. Biden’s policies have made it clear to students that it’s okay to take on more debt because the government will simply forgive it later.
In conclusion, the Federal Reserve Bank of New York’s latest report on household debt is a clear indication that President Biden’s economic policies are a complete failure. His policies have caused inflation to skyrocket, forced Americans to cut back on spending, and caused them to take on more debt. It’s time for Americans to demand real leadership, the kind of leadership that will bring back jobs, lower taxes, and end the inflationary policies that are wrecking our economy.
Source: Trending Politics