Earlier this year, President Joe Biden boasted that the stock market had “beaten record after record after record on my watch while making things fairer for the working class.” Since Biden took office, U.S. investors have allegedly lost an estimated $7.6 trillion. The records allegedly set on his watch were extinguished this summer. In addition, American working-class families have lost out due to inflation, exacerbated in part by Presidential Executive Orders $4,200 in real income and have to spend an additional $11,500 just to maintain the previous standard of living.
CNBC reported Americans’ holdings of corporate stocks and mutual fund shares fell from $42 trillion at the start of the year to $33 trillion at the end of the second quarter of 2022 — a $9 trillion decline.
Further sharp declines since July in major market indices (e.g. the S&P 500 stock index) can be observed down 23%) and the bond market (bond market index funds are down 15% this year) are estimating asset losses in the financial markets to be between $9.5 trillion and $10 trillion.
It’s not just like big-time traders House Speaker Nancy Pelosi and her husband or tech billionaires Who could feel the effects, although the richest 10% of Americans have lost $8 trillion in stock market assets this year.
Fox News Digital pointed out that savers who have diligently invested their money in IRAs may be hit hard, along with retirees and taxpayers.
Trillions of dollars of value have been wiped out of Americans’ retirement savings.
Alicia Munnell, director of the Center for Retirement Research at Boston College, written down that participants in the 401(k) plan had lost nearly $1.4 trillion from late 2021 through June; and that Americans with IRAs had lost $2 trillion.
Citing data from comparison service Wilshire Trust Universe, the The Wall Street Journal reported last month that “Public pension plans are down an average of 7.9% for the year ended June 30… their worst annual performance since 2009 and a new sign of the chronic financial strain facing governments and pension savers.”
This “damage”, much of which occurred in April, Canand June, was attributed to “intense pressures driven by inflation concerns, high stock valuations and a broad pullback from speculative investments.”
Those losses, which “have plagued household and institutional investors alike,” will mean higher annual pension contributions, lower benefits and higher taxes for state and local governments in the years to come.
public pension funds, noted the Journal“have hundreds of billions of dollars less available than they will need to meet future value propositions.”
The damage to investors’ wealth can adversely affect spending, borrowing and investing.
According to Moody’s Analytics chief economist Mark Zandi, these recent losses, which have occurred with Biden in office, could shave about 0.2 percentage point off real GDP growth next year. “The loss in equity wealth suffered so far, if sustained, will present a small but significant headwind to consumer spending and economic growth.”
Zandi suggested consumer spending could be cut by $54 billion next year.
Larry Kudlow, former director of the National Economic Council, wrote on Tuesday: “Every time Mr. Biden goes out there and talks about ‘zero inflation’ and a strong economy, he’s begging every American to be gullible. Nobody believes him.”
Kudlow suggested that this lack of confidence in the president was well captured in a recent Washington Post/ABC News poll, which shows Republicans have a 21% lead in key swing districts across the country.
https://www.theblaze.com/news/us-investors-have-lost-76-trillion-since-biden-took-office US investors have lost $7.6 trillion since Biden took office