Sunday, February 25, 2024

The Shocking Destruction of America’s Wealth Under Joe Biden

Joe Biden and his progressive minions have caused great harm, and it’s easy to lose track of everything his administration has done to inflict pain on American citizens. Hyperinflation, the border crisis, gas prices, the energy crisis, the failure in Afghanistan, crime, gender insanity… The list is seemingly endless. However, none of Biden’s inept initiatives are as tragic and unnecessary as the shocking destruction of personal wealth for ordinary Americans.

Our Stunning Loss of Net Worth

While the gas pump and the grocery store are daily reminders of the Biden economy, it’s the staggering loss of wealth that average Americans should be most concerned about. A recent report from the Federal Reserve confirms that American households lost $6.14 trillion in just the second quarter of 2022 alone. This decline in household wealth would actually have been closer to $9 trillion if the effect of rising home prices had not offset some of the losses investors suffered in the stock and bond markets.

Naturally, liberal socialists shrug off shrinking 401(k) accounts as nothing more than a haircut for the wealthy, but declining net worth has affected every income group. For example, the 50-90 percent wealth percentile, which is essentially the middle class, lost $1.02 trillion in the second quarter. Shrinking household balance sheets are impacted primarily through declines in IRA and 401(k) accounts, which typically hold mostly stocks and mutual funds.

The Negative Wealth Shock Has Just Begun

Remember, the fed report covered the period from April through June, so we won’t know how much more the financial downdraft affected American’s net worth for the third quarter until late December, but most accounts will probably see even larger declines as traditional wealth generating aspects of the economy continue to deteriorate.

Housing: In the second quarter, national housing values rose $1.46 trillion. However, with steepening mortgage rates now over 6 percent, home appreciation has stalled or in some cases declined. According to Zillow Research, home values fell in September in major markets such as Los Angeles (-3.4 percent), San Francisco (-3.4 percent) and Salt Lake City (-2.6 percent).

Dennis Shirshikov, head of content at the real estate investment site Awning, recently said, “I expect home prices will dip roughly 10 percent in most markets in the fourth quarter,”

Stock Market: For middle class Americans saving for retirement through IRA or 401(k) accounts, the Dow fell another -6.2 percent in Q3, followed by the S&P (-4.9 percent) and the Nasdaq (-4.4 percent). The first month of the fourth quarter is already off to a rocky start.

Loss of Income: According to a Heritage Foundation study, the average American has lost nearly $4,200 in annual income under the Biden administration because of higher interest rates and inflation. This is opposed to the $4,000 gain American workers enjoyed annually under President Trump.

Progressive Socialists Still Want More of Your Money

Woke progressives believe no one should be wealthier than the poorest person among us, so while they celebrate your declining wealth, they’re not done. The so-called, “Inflation Reduction Act,” includes $300 billion in higher taxes, primarily extracted from large corporations. I’m sure you’re as certain as I am that these businesses will eat the tax increase and not pass it on to consumers, right?

Perhaps even more disconcerting is a part of the Biden administration’s future wealth confiscation strategy as outlined in a document titled, “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposal.” In it, a sinister plan is unveiled, which is designed to directly confiscate generational wealth of ordinary Americans by raiding their revocable trusts. For most people, a trust is an estate planning instrument designed to avoid probate taxes by creating a legal entity that exists separately from the owners of the trust. Trusts have been used for over 100 years to preserve and grow wealth for succeeding generations.

But Joe Biden wants that money.

The Biden plan eliminates something called “stepped-up basis,” so a beneficiary would be forced to pay the taxes on a capital gain based on the original price of the asset. For example, under current law, heirs who sold an inherited house for $500,000 at today’s market value would owe no taxes. However, under Biden’s proposal, if the house was originally purchased for $100,000, that same $500,000 sale would leave the heirs with a tax burden on the $400,000 gain.

Wealth Destruction and Confiscation From the Party That Cares

Remember, liberal Democrats believe your money is really their money, you’re just holding it for now. They understand that financial security leads to freedom and independence, and that’s the last thing they want. Why do you think that despite trillions in social spending, minority neighborhoods remain poor? In their utopian dream, it’s essential to create more dependents, and to do that, they need to confiscate and destroy your wealth.