President Biden’s blatant lie that Americans are saving more since he took office has been exposed by data from the Federal Reserve showing how inflation has destroyed savings, reducing the cash reserves to the lowest in recent years.
Federal Reserve Economic Data (FRED) exposed that in May this year, Americans had just 5.4% of their paychecks left after paying basic living expenses, leaving very little for savings. This amount is known as the National Personal Savings rate.
It currently sits far below the record of 33.8% that was recorded in April 2020 under former President Donald Trump.
The number is also well below the average amount Americans had available to save each month through the last decade.
The lowest National Personal Savings rate previously recorded was in January 2013 under former President Barack Obama, when it hit 5.6%.
Americans had accumulated a total of $2.7 trillion in savings by the end of 2021. However, due to rising inflation impacting living costs, Americans have burned about $114 billion in 2022. This means that just over $2.5 trillion in savings remains.
The findings expose Biden’s lie declaring in May, “Since I took office, families have increased their savings and have less debt.”
BIDEN: "Since I took office, families are carrying less debt, their average savings are up…more Americans feel financially comfortable…" pic.twitter.com/YvJBOyL48c
— Townhall.com (@townhallcom) June 3, 2022
According to a survey by Northwestern Mutual, Americans’ savings accounts shrunk by over $9,000, from $73,100 in 2021 to $62,086 in 2022.
The drop in savings is primarily due to the record-setting inflation, which reached 8.6% in May. It is not expected to slow down, and a national recession appears to be looming.
Analysis by Moody’s, first reported in the Wall Street Journal, found that the rise in the cost of living was part of the reason for the decrease in savings.
Most Americans have to dip into savings to cover increased food, gas, and energy bills. Leisure activities such as vacations and eating out have also rocketed in price.