Biden-Harris Economy Makes the Rich Richer
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Key Takeaways
- Despite nominal wage increases, inflation and the rising cost of living continue to financially strain Americans, especially in the middle and lower classes.
- Income and disposable income distribution charts highlight the top 10% of earners have increased their income, while lower-income households flounder.
- Americans largely blame Democratic policies, especially the Biden-Harris administration, for their increasing sense of economic doom and despair.
Our Methodology
Demographics
All Voters
Sample Size
77,000
Geographical Breakdown
National
Time Period
7 Days
MIG Reports leverages EyesOver technology, employing Advanced AI for precise analysis. This ensures unparalleled precision, setting a new standard. Find out more about the unique data pull for this article.
MIG Reports data shows a very dismal economic situation for Americans in 2024 with much despair and blame focused on the Biden-Harris administration. In brevity, Americans are struggling. Reports from the Bureau of Economic Analysis’s (BEA) on American incomes, combined with voter conversations about the economy, paint a concerning picture.
Many Americans, especially free market capitalists and fiscal conservatives, blame hypocrisy in current policies. They say, despite claims that Democrats are a Party for the working class, under the Biden administration, the rich are getting richer. BEA data legitimizes voter allegations that Biden-Harris policies are worsening the conditions they claim to fight against.
Americans Depressed About the Economy
Many Americans, especially middle- and working-class, say their take-home pay is lower than it was pre-COVID. Inflation and the rising cost of living are major concerns, overshadowing nominal wage increases.
Critics of the Biden-Harris administration refer to the current situation as a result of "Bidenomics," and more recently "Kamalanomics." They cite economic mismanagement and a lack of desire from Democrats to enact policies to help struggling Americans.
Democratic supporters point to legislative measures like the Inflation Reduction Act as steps toward economic recovery. However, this group seems unaware of or unwilling to admit the true results and revisionism around the IRA.
Tax policy is a contentious topic as voters debate the impact of previous tax cuts versus current proposals. The conversation often centers on political accountability and policy effectiveness, with conservatives wanting accountability from Democrats and progressives accusing Republicans of ineffectiveness.
On both sides of the political aisle, there is negativity and despair about current economic conditions, despite Democrats claiming signs of recovery.
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Inflation Squeezes Working Families
The press of rising inflation causes frustration and a sense of helplessness over declining financial well-being compared to pre-COVID times during the Trump administration. Many people say they are earning less in real terms due to higher living costs, particularly in essentials like gas, groceries, and housing.
Progressives attempt to justify the economy and praise efforts like the Inflation Reduction Act, but the predominant sentiment is disillusionment. Conversations are highly polarized, with critics blaming Biden for mismanaging the economy. Supporters point to job growth and other positive developments—however these apologists tend to be among the elite or commentary class, rather than working Americans.
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Fiscal Policy Criticisms
Discussions about fiscal policy focus on Biden’s narrative about inflation, job creation, and the overall economy. Americans are split between optimism about recent improvements and criticism over inflation and rising costs.
Democratic supporters recite administration talking points on inflation reduction, job creation, and infrastructure investments. They refer to the Inflation Reduction Act as a positive step, telling Americans to look on the bright side.
Critics, however, argue inflation realities defy any claims about mitigation by the Biden administration. They say real financial burdens on families have increased, regardless of what government reporting and policy pandering claims. Everyday Americans frequently blame policy failures in areas like immigration and crime as contributing to their struggles.
Many Americans also compare the Biden economy with Trump’s economy. This is a recurring point because many nostalgically view Trump's era as a time of economic prosperity.
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Why Americans Are Making Less
Rising Costs: Inflation has drastically increased costs. The price of essentials continues to rise to shocking levels. Americans frequently lament the cost of groceries, gas, housing, insurance, and childcare.
Stagnant Wages: In most sectors, wages have not kept up with inflation. Thus, even if they receive a higher paycheck, Americans suffer decreased purchasing power.
Economic Inequality: Many in the wealthier classes continue to accumulate financial gains. Meanwhile, middle- and lower-income brackets are struggling to make ends meet.
Uncertainty: Ongoing financial strain and a lack of savings or disposable income is putting pressure on American households. This creates anxiety and fear about the future and prospects for younger generations.
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NIPA Data Analysis
Data from National Income and Product Accounts, which are gathered by the BEA, corroborate the feelings of financially strained Americans. MIG Reports analysis of this data, combined with voter conversations, reveals legitimate causes for American concern.
Income Inequality: Data clearly shows significant income inequality, with the top 10% of earners consistently holding a large portion of total personal and disposable income. This demonstrates that wealth and income gains primarily benefit the highest earners, leaving lower and middle-income families to flounder and struggle to pay their bills.
Stagnant Middle Class: Middle-income brackets, between 20-70%, are experiencing minimal changes in their share of income, indicating a lack of significant financial mobility. This stagnation causes a sense of financial insecurity and the middle class feeling they are not benefiting from overall economic growth.
Lower-Income Falling Behind: The lowest 10% of households have the smallest shares of personal and disposable income. This exacerbates ongoing challenges for the poorest families who cannot make ends meet. Despite slight improvements in disposable income, inflation costs hit this group the hardest, negating any gains.
Tax and Policy Implications: Disposable income distribution is slightly less unequal than personal income distribution. This suggests taxes and government transfers do have some redistributive effects. However, the impact appears insufficient to significantly alter the overall distribution of income, underscoring economic pressure on the lower classes.
Visualized Data and Analysis
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When household spending growth outpaces GDP growth, it often indicates middle-class families are spending more due to rising living costs. This typically strains household budgets, especially if incomes do not increase at the same rate. These periods can lead to inflationary pressures, eroding purchasing power and straining household finances. Economic volatility, as seen in the fluctuations of the growth rates, creates uncertainty and can affect job security, impacting the stability of middle-class households.
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The chart shows how inflation is impacting the cost of personal consumption expenditures (PCE), goods, and services over time. From early 2022 to mid-2024, both the PCE and services indices have consistently increased. This indicates prices for services like healthcare, education, and utilities are rising steadily.
Many Americans note they have been spending more overall, especially on services, without a change in quality of life. Services are a major component of daily expenses and things like healthcare and education are often not optional.
These inflation trends are foreboding for middle-class families as their cost of living is increasing. The rising costs of services, many feel, are outpacing meager wage increases, which reduces purchasing power and lowers quality of life.
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The chart compares Real Personal Consumption Expenditures (Real PCE) with Nominal Personal Consumption Expenditures (Nominal PCE). It shows that, even if households spend more money than before, they are not necessarily getting more goods or services because prices have risen. This trend highlights the impact of inflation on purchasing power, making budgets tighter since dollars don’t buy as much as they used to.
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The chart displays the distribution of personal income from 2015 to 2022, showing how different income brackets have changed over time. In 2022, a larger share of total income went to the top 10% of earners compared to 2015. This illustrates the widening gap between higher-income and lower-income households. Income shares for the middle and lower brackets remain relatively stable or decrease slightly. The top income bracket (90-100%) has seen an increase in their share, indicating the wealthiest individuals are capturing more of the overall economic growth. This trend highlights growing income inequality, where the rich are getting richer, and middle- and lower-income families are falling behind.
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The chart shows the distribution of disposable income from 2015 to 2022 across different income brackets. The top 10% of earners have seen an increase in their share of disposable income over this period. This reveals more of the available income after taxes and transfers is concentrated among the wealthiest Americans.
Meanwhile, the share of disposable income for middle- and lower-income brackets has either stayed the same or decreased. These groups are not benefiting as much from income growth. This trend highlights growing income inequality, where wealthier households are capturing more disposable income, leaving less for the rest of the population.
This data backs ups lamentations from average American families who say they struggle to keep up with rising living costs. Many say the current economy is crushing their ability to save or spend on non-essential goods and services. Overall, this chart emphasizes the increasing concentration of wealth and the widening gap between different income groups.
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