The Sconi

EJ Antoni, a research fellow in regional economics at The Heritage Foundation's Center for Data Analysis, said the Biden administration's policies have driven up inflation, costing the average household thousands of dollars through a combination of costs rising faster than wages and high-interest rates. Wisconsin residents have been hit hard by inflation, with food banks struggling to meet growing demand due to high grocery prices and local businesses seeing a decline in customers as families are forced to cut out non-essential goods and services.

A December release from The Heritage Foundation presented an analysis of the latest consumer price index (CPI) summary and found that since Biden took office, inflation rising faster than wages has cost the average American household $5,800 in real annual income, while high-interest rates have cost the average family $1,300, for a combined total of $7,100. Antoni also pointed to the Biden "administration’s war on reliable American energy" as another reason for the strain on household budgets, saying that families will have to spend 16% more on heating bills this winter than last winter to stay warm.

“Although the slowdown in inflation is certainly welcome, it’s not a sign of things to come," Antoni wrote. "The latest data illustrate why families cannot afford to live in Biden’s America. Under Biden, prices have risen so much faster than wages that the average family has lost $5,800 in real annual income. That loss is thanks to the ‘hidden’ tax of inflation, caused by the Biden administration and congressional Democrats’ policies.

"Higher interest rates are now costing the typical family another $1,300 annually. Combined with a lower real income, this effectively costs families a total of $7,100 in annual income under Biden," Antoni added. "But some families are even worse off, especially if they are trying to buy a home. The monthly mortgage payment on a median-priced home is up 84%, or $820 since Biden became president. That’s about $10,000 more per year and $300,000 more over 30 years for the same house." 

Per the latest CPI summary, the cost of food at home has risen more than 12% in the last year, leading many Wisconsinites to turn to food pantries for assistance, Wisconsin Public Radio reported. Suzanne Becker, the executive director of Feed My People Food Bank, which serves families in west central Wisconsin, said that throughout 2022, more and more people sought help from her organization and they expect to see another 18% increase in clients in 2023. 

"Imagine if your family was just getting by before and now all of a sudden, they're having to pay so much more to fill up their car or just to buy regular groceries," Becker said. "We're just seeing a real increase in families who have not ever had to ask for help before." 

Chris Kane, senior director of client services at the Society of St. Vincent de Paul in Madison, said the number of people the organization helps has increased from 1,500 per month pre-pandemic to 2,400 per month today. "Demand right now is as high as we've ever seen it," Kane said. He noted that the society's grocery costs have risen from $15,000 per month to $30,000 per month.

Some local businesses are seeing drops in customers as families have to cut out non-essential goods and services, Spectrum News reported. Bay’s Nail Spa in Thiensville has experienced a decline in business, but owner Bay Vongsavath said she understands the choices that customers are being forced to make. “The way it is on our end, we try to do our best wherever we can to get our customers back, but it’s just not their priority. They’d rather have their food on the table, their gas in the tank they can go get a coffee, that’s their normal thing,” she said.

Before Biden took office in Jan. 2021, the annual inflation rate stood at 1.4%, but since then inflation has broken a 40-year-high record, rising significantly faster than wages and driving many into debt, according to a December report from the Independent Women's Forum (IWF). Almost two-thirds of Americans are now living paycheck-to-paycheck, with many taking on credit card debt to cover the costs of necessities. Collective credit card debt in the U.S. stands at $930 billion, representing a 15% increase over the last year.

The IWF pointed to the Biden administration's fiscal policies as a driver of inflation, highlighting expanded tax credits, paused student loan payments and tax-and-spend policies. The report highlighted recent legislation that includes a 15% corporate alternative minimum tax, a $6.5 billion tax on natural gas, a $12 billion tax on crude oil and a $1.2 billion tax on coal and noted that almost a third of corporate taxes are passed on to consumers through higher prices, citing a 2020 study by the National Bureau of Economic Research.