### Summary
Former Toys "R" Us CEO Gerald Storch warned that the economy is likely to face a difficult holiday season due to persistent inflation. Other economic stresses such as rising interest rates, credit card debt, and student loans are also contributing to consumer difficulties.
### Facts
- Inflation remains sticky despite the Inflation Reduction Act that was passed a year ago.
- Sales of physical products have been declining for 11 consecutive months when adjusted for inflation.
- The July consumer price index (CPI) rose 0.2%, with prices climbing 3.2% from the same time last year.
- Pulte Capital CEO Bill Pulte suggests that the economy is in a period of stagflation with low growth and high inflation.
- Shelter costs, accounting for 40% of the core inflation increase, rose 0.4% for the month and are up 7.7% over the past year.
- Americans are spending $709 more per month on everyday goods and services compared to two years ago.
- Consumers are shifting towards value retailers in response to inflation.
- President Biden acknowledges that the Inflation Reduction Act was not solely aimed at reducing inflation but rather focused on generating economic growth.
The US economy is growing rapidly with favorable conditions for workers, but despite this, many Americans feel pessimistic about the economy due to inflation and high prices, which are driven by complex global forces and not solely under the control of President Biden or Trump. Housing affordability is also a major concern. However, the Biden administration can still tout the economic recovery, with low unemployment and strong economic growth forecasts.
Despite signs of declining U.S. inflation, a majority of Americans, particularly those living in rural areas, are experiencing higher grocery prices under President Biden's economic policy, known as Bidenomics. Concerns about inflation and reliance on partisan news contribute to the perception of economic challenges, despite reports of a strong U.S. economy.
President Biden claimed that the United States has the lowest inflation rate among major world economies, despite his own Commerce Secretary acknowledging that inflation "still exists" and is a challenge for Americans.
President Joe Biden has promised to lower U.S. gasoline prices, addressing voter frustration over the economy as consumer inflation rises.
Despite the positive impact of Biden's economic agenda, Americans are still skeptical about the state of the economy, partly because the benefits of the agenda are not always visible or well-known.
A new survey shows that President Biden's claim of improving the economy is not resonating with American voters, with more than twice as many feeling worse off than better off since the pandemic, potentially impacting his chances in the 2024 election.
Americans are feeling pessimistic about the economy despite the decline in inflation, with rising prices and reduced household income affecting their perception, potentially influencing the outcome of the 2024 presidential election.
Despite the recent decline in inflation, the negative effects of previous price increases have impacted Americans' perceptions of the economy, threatening the political prospects of both major parties as the 2024 presidential election approaches.
Some Democrats are concerned that the branding of "Bidenomics" is falling flat and not effectively selling the economic achievements of the administration, with polling data showing that the public remains skeptical and the rising cost of living is still a dominant concern.
President Biden criticized the media for focusing on negative stories and claimed that the American people are better off financially, despite overseeing the highest non-pandemic annual deficit in US history and confusing the terms "debt" and "deficit."
The Biden economy is causing problems for Americans who have been fleeing liberal states like New York and California for lower home prices and taxes, as business experts warn of potential financial issues on the horizon.
Consumer sentiment in the US fell to its lowest level since May, with Americans' expectations for inflation over the next year reaching the highest level since April, potentially leading to higher price pressure.
The Biden administration is facing opposition to its proposed fuel economy standards, with critics arguing that it would increase consumer costs and burden U.S. businesses, leading to concerns about restricted consumer choice, high costs, and the dependence on electric vehicles.
President Joe Biden's focus on Bidenomics as his campaign message is backfiring, as polls show that more voters trust former President Donald Trump on the economy, and Biden's economic approval ratings are low, despite significant campaign investments in pushing Bidenomics.
