Of course Americans are sour on the economy: they’re having to put necessities on credit cards that charge $240 billion in interest annually. How we got here is a lesson in failed government policy. Excessive government spending over the last four years has created nothing short of a cost-of-living crisis, which has left families mired in debt. When the government spent, borrowed and printed trillions of dollars, that devalued the dollar, causing inflation.
With 60% of families living paycheck to paycheck, many people had to get second or even third jobs to make ends meet. While that increases payrolls and makes the monthly jobs numbers look great, it’s actually a sign of impoverishment, not wealth. Many families also fell into debt, relying on credit cards to pay for necessities like rent, groceries and utilities. That has caused credit-card balances to soar to a record $1.
Sadly, many families are falling into debt traps where they cannot afford to pay their existing expenses, let alone additional finance charges. They must take on more debt not only to pay today’s bills but also to pay the interest on yesterday’s borrowing. That’s a downward spiral ending in disaster.
That’s a key to understanding why Americans view the economy so unfavorably in polls. The last three years have taken them backwards financially, even as their salaries increased. This will continue if Washington maintains its prodigality. Every time the federal budget increases, the family budget decreases. CLICK HERE TO READ MORE FROM EJ ANTONI