Since President Joe Biden came into office, an average American has lost close to $4,200 in annual income, according to a report from the Heritage Foundation.
The average American worker has lost $3,000 in annual purchasing power because of rising inflation and higher interest rates.
Consumer prices have risen 12.7% since January 2021, faster than wages, resulting in a loss of individual purchasing capacity, according to the conservative think tank.
The average American purchasing power has been reduced by another $1,200 annually with higher interest rates. The borrowing costs on credit cards, vehicle loans, and mortgages have been increased because of the rate hikes.
EJ Antoni, a research fellow in regional economics at the Heritage Foundation's Center for Data Analysis, said Americans are $4,200 poorer than when Biden took office.
The financial catastrophe for American families is a direct result of a president, and Congress addicted to spending our money, combined with a Federal Reserve compliantly enabling this addiction by printing more dollars, the researcher said.
Americans are taking additional debt to manage higher living costs because of rising costs and interest rates, according to Antoni.
He noted that the Fed is finally fighting inflation, raising interest rates and increasing financing costs. Since Biden took office, mortgage interest rates have doubled, increasing the monthly payments of Americans. The benchmark index was raised by the Federal Reserve by 0.75% last week and indicated that it would stay above the current level.
This rise marks the third 0.75% rate hike for the Fed in four months as it continues to battle inflation.