If you take an honest look at the numbers, the obvious conclusion is that the U.S. economy is rapidly going in the wrong direction. Delinquency rates are soaring, sales of previously owned homes have declined by more than 32 percent over the past two years, inflation is starting to rise at a frightening pace again, large companies all over America are laying off workers, and we just witnessed the largest decline in real median household income in more than a decade. Sadly, it is often the most vulnerable members of our society that get hit the hardest when economic times get rough. According to the Census Bureau, the child poverty rate in the United States more than doubled from 2021 to 2022…
The U.S. poverty rate according to the Supplemental Poverty Measure (SPM) was 12.4% in 2022, a rise of 4.6 percentage points from 2021. The poverty rate for children more than doubled year over year, from 5.2% to 12.4% — a record increase.
There is no way to spin that number to make it look good.
So why did this happen?
The Census Bureau is blaming inflation and the end of emergency programs that were instituted during the early days of the pandemic…
Inflation was a factor, but Census Bureau officials said the spike could largely be attributed to the expiration of pandemic programs: There were no stimulus payments last year, and the enhanced child tax credits expired in 2021.
Those stimulus checks were nice while they lasted, but they also helped to fuel the horrifying inflation that we are experiencing today.
Inflation seemed to cool off a bit for a few months, but now it is starting to accelerate again.