Wharton Study: Bidenflation Will Cost Families $3,500 This Year, Low-Incomes Hardest Hit

US President Joe Biden speaks after signing an executive order on delivering government services in the Oval Office of the White House in Washington, DC on December 13, 2021. (Photo by Nicholas Kamm / AFP) (Photo by NICHOLAS KAMM/AFP via Getty Images)
NICHOLAS KAMM/AFP via Getty Images

Bidenflation will cost families an additional $3,500 this year, impacting low-income families the hardest, a study released Wednesday showed.

According to the University of Pennsylvania’s Wharton School’s budget model, Americans on average will have to spend $3,500 more in 2021 to sustain their consumption of years past in 2019 and 2020.

The study also suggests low-income families will be disproportionally impacted. The study estimated lower-income families will have to spend seven percent more money to maintain their previous consumption patterns, while higher-income families will only have to spend six percent more.

“Lower-income groups spent relatively more on food, energy, and shelter, while higher-income groups spent relatively more on other commodities and services,” the study states.

Across the consumption basket of income groups, the bottom 20 percent of families saw the price of their consumption increase 6.8 percent, or $2,120.

The top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.

Meanwhile, the top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.

“Since higher-income groups had a bigger increase in expenditures in all categories, they also saw a bigger increase in total expenditure,” the study read. “However, because of variation in the composition of consumption bundles, we find that higher-income households had smaller percentage increases in their total expenditure.”

The Penn Wharton study comes after Bidenflation has reached a 40 year-high, increasing 6.8 percent from 2020. The cost of energy, food, housing, transpiration, vehicles, clothing, and hotels have all increased under President Biden.

Yet Americans do not have faith Biden will squash inflation. A Monday poll revealed 53 percent of Americans believe the economy, due to inflation, is becoming worse, while only 15 percent believe Biden is improving the economy:

Income doesn’t change the perception of inflation. Americans earning less than $50,000 were just as likely to say inflation is a very serious problem as those earning between $50,000 and $100,000 or those earning more than $100,000.

A Sunday poll showed a majority (56 percent) of voters do not think Biden is concerned about American families incurring massive price increases. The numbers among just Democrats are no more favorable. Only 48 percent of Democrats believe Biden is concerned about inflation.

Follow Wendell Husebø on Twitter @WendellHusebø


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