Poverty rate increases for first time since 2010

Source

Across the board, poverty rates are increasing, impacting families at an alarming rate. The one thing I actually agree with Democrats on, is that Republicans should have found a way to extend the child tax credit. Maybe using the money we are sending to Ukraine to subsidize the child tax credit would have been a vastly better way to spend that money.

Inflation just keeps chopping away at peoples ability to survive. They have been clamoring how great the economy is, yet credit card debt has hit an all time high all the while auto loan defaults are at staggering levels and the housing market is a bubble about to make 2008 look like a day in the park.

Our society is torn apart, on the precipice of civil unrest. Unfortunately, I feel dark, dark days are ahead.

 

I'm curious if this has anything to do with it:
"The Supplemental Poverty Measure (SPM), which measures income and benefits plus government programs, such as tax refunds and food stamps, rose to 12.4 percent in 2022."

This would mean that government policy directly affects the poverty rate. If you expand the food stamp program, increase tax credits, tax rebates, etc, then you automatically increase the poverty rate as measured.

10 there are too many people in poverty
20 we must give people more money
30 increase SPM
40 goto 10

 

Has to do with the lingering effects of inflation and Covid related issues. Although inflation is now lesser than it was in 2021 or 2022, its lingering effects will last for years , if not decades.

 

The problem is that the spending continues to persist. We have zero control over our debt. About to surpass $33 trillion and at our current rate of spending, will surpass $44 trillion by 2027. That is not only from the Trump administration, but emphatically from the Biden administration as well. Continuing to flood the economy with dollars will only keep inflation on track. Yes, it is less than in 2021, but it is showing a tendency of going back up, as it has this last quarter.

 

And our economy is based on spending. 70% of our GDP is based on consumer spending. Another 20% on government spending. 12% is based on investments. And a negative 2% on net exports and imports.

But your problem is that spending, government or otherwise, has nothign to do with inflation per se.

 

Ha. Did you really just pull some basic programming?

 

Historically speaking, you're not wrong. COVID spending was surely an outlier, which injected a huge amount of capital into the economy, which then led to supply chain issues, as consumers were flooded with dollars. With the additional spending, the current administration is funneling money into large infrastructure projects. This leads to low unemployment, which as you know, also causes inflation.

 

so it's time to tell the republican run fed to lower interest rates?

 

You mean the one reappointed by the Biden administration?

 

The numbers I saw were a double whammy. The numerical wages are down and inflation is up. Translation, people are making less money, and what they are making buys less.

You got to love "Bidenomics."

 

Sad reality is that EVERYONE is talking about how far their dollar goes, or lack of. It's doesn't matter if they have a (D), (R) or (I) behind their name, they are all reeling from the cost of living right now.

 

The tax credit expiration has a lot to do with it as does the COVID payments.
Remind me what Congress has done to combat this other than letting the tax credit expire.

 

The thing that irritated me about Trump's tax cuts is that he made them permanent for business, but the cut for individuals had a sunset clause.

 

Brandonomics. Making less while things are more expensive.

Thanks Dems.

 

Had to get senate democrats to vote for it.

 

I wonder if adding a couple of million illegals to the population over the past two plus years could be a factor? I doubt any of them have achieved middle class status yet.

 

Historically speaking I am right. We spent like drunken sailors in the 1980s where interest rate and inflation all went down. We spent again under the GWB era and again inflation was low and stable. We did it again under the Obama Administration where, again, inflation was low and stable. And we did it under the Trump administration, where most of that COVID spending came from, and again, inflation was low and stable.

Inflation was caused by three factors: qualitative easing by the FED in 2019, the near zero prime interest rates by the FED started in 2019, and our supply chains disrupted by Covid which caused an imbalance between the aggregate money supply and the aggregate money demanded which led to inflation. The FED screwed up by not raising interest rates soon enough and though it was a "transition period" in 2021. And when they started raising interest rates, we were already at 9% per annum on inflation.

 

yep, as he thought he would behave the same way he did under Trump, but that was not the case

 

Me personally, felt that if had raised the rate vastly higher at the onset of inflation, versus these meager quarter and half point increases, inflation would be a non-issue today. In essence, rip the band aid off if one swift motion. It would had surely hurt the economy initially, however, I do not think we would be seeing an uptick today.

 

agree, it should not of been as low as it was

and if the economy was so great under Trump as claimed, that is when you start raising it, not talking about negative rates

 

You just agreed with me.... you realize that, right? BTW, quantitative easing has been occurring since 2008, with various stages taking place.

 

Our problem is purely Bidenflation and his energy policies. Are there other countries whose governments have engaged in similar policies YES. Does that act as an excuse for Biden and the Dems NO.

 

Meanwhile, Dems are blaming the victims.
The Democrats' Oliver Anthony Problem
Ruy Teixeira, Substack



Get Ready for More Education Polarization Read More

 

You are spot-on correct -- and we should all remember that although inflation, generally, has reached a plateau, prices on nothing I can find have actually decreased on anything (except eggs) during 2023.

Everybody in the Biden Admn. crows about how inflation is "down", but we're stuck with high prices which aren't coming down! Remember also that a large part of this disjointed economic mess was caused by the Federal Reserve central bank, which moved heaven and earth ever since 2008 to make sure that prices would not "deflate", because it would have hurt the 'almighty-god' stock markets! They kept interest rates crushed for well over a decade which distorted nearly everything in what used to be a free-market economy -- and now, on top of everything else, the price of oil is back up to over $90 per barrel.

And, to make things even worse for many Americans, the government welfare, subsidy, and handout programs are running out, people have racked-up enormous debts, they've bled out what little savings they had, and it's going to be a long, fun winter.

Merry Christmas!

 

If we'd just get rid of Democratic policies we wouldn't need to extend the child tax credit. Everything they do adds to inflation.