Your Retirement Has Been Impacted by Bidenomics. Millions of Americans aiming to retire find themselves in a financial struggle reminiscent of Bob Cratchit, tirelessly working but unable to make headway, all thanks to the significant impact of Bidenomics on their retirement plans.
Bidenomics Blow to Retirement Savings
Recent research, conducted in collaboration with the Committee to Unleash Prosperity, reveals a startling reality under the Biden administration, the real value of the average 401(k) has diminished by a quarter over the past two and a half years.
Government Overspending and Overregulating The Culprits
The study attributes this decline to the consequences of government overspending and overregulating—the core tenets of Bidenomics. The administration’s swift accumulation of multitrillion-dollar debts, funded by the Federal Reserve’s money creation, triggered a 40-year-high inflation and rapid interest rate hikes.
Double Impact on Retirement Accounts
Equities suffered, but bond markets were hit even harder, dealing a double blow to retirement accounts. In 2022, a rare year when both equities and bonds experienced negative average returns, the bond market recorded its worst performance since 1928.
Substantial Losses and a Bleak Outlook
The combined effects of government interference and stringent regulations led to an almost 13% decrease, approximately $17,000, in the average 401(k) plan within the first two years of the Biden administration. Across all retirement plans, the cumulative losses reached a staggering $1 trillion.
Inflation Role in Eroding Retirement Values
The soaring inflation, a consequence of excessive government spending, borrowing, and money printing, further diminished 401(k) values by an average of $16,200, resulting in a real (inflation-adjusted) loss of around $33,200 or 24.8%.
Concerns for Pension Plans
Pension plans, while somewhat more resilient than individual retirement accounts (IRAs), also saw a decline in real value. Through the third quarter of the current year, pension plans lost $3.3 trillion, equating to a 12.1% decrease during the Biden administration.
The Unnecessary Downfall
Contrary to the administration claims, data exposes that the economy was not in crisis when Biden took office. The unnecessary continuation of excessive spending and multitrillion-dollar deficits, championed by Biden, has had a devastating impact.
Record Losses for American Families
The repercussions extend beyond retirement accounts. The typical American family has experienced a loss equivalent to $7,300 in annual income under Biden, attributable to inflation and higher borrowing costs. This has led to a record number of Americans working multiple jobs to cope with an $11,400 increase in the cost of living.
Challenges for Retirement Planning
As government expenditures outpace consumer spending, retirement accounts face continued challenges. The federal debt recently surpassed $33.85 trillion, expected to breach $34 trillion by year end—illustrating the tangible effects of what the White House terms “Bidenomics in action.”
Uncertain Retirement Futur
Unless there a significant shift in economic policies, retirement accounts are unlikely to witness substantial improvements. With the federal debt climbing,
Americans may find it increasingly difficult to retire, echoing the cautionary tale of Scrooge’s admonishment to Cratchit. Without a change of heart in Washington, retirement may remain an elusive goal for many.
[irp]Conclusion
As Bidenomics continues to cast a shadow over retirement savings, millions face the harsh reality of delayed retirements and eroded financial security. Without a shift in economic policies, the prospect of a secure and timely retirement remains uncertain for many Americans.
