Peach Tree Times

EJ Antoni, a research fellow in regional economics at The Heritage Foundation's Center for Data Analysis, said the Biden administration's policies have driven up inflation, costing the average household thousands of dollars through a combination of costs rising faster than wages and high interest rates. Georgia residents have been hit hard by inflation, and can expect to pay as much as 24% more this winter to heat their homes than last winter.

A December release from The Heritage Foundation presented an analysis of the latest consumer price index (CPI) summary and found that since Biden took office, inflation rising faster than wages has cost the average American household $5,800 in real annual income, while high interest rates have cost the average family $1,300, for a combined total of $7,100. Antoni also pointed to the Biden administration’s "war on reliable American energy" as another reason for the strain on household budgets, saying that families will have to spend 16% more on heating bills this winter than last winter to stay warm.

“Although the slowdown in inflation is certainly welcome, it’s not a sign of things to come," Antoni wrote. "The latest data illustrates why families cannot afford to live in Biden’s America. Under Biden, prices have risen so much faster than wages that the average family has lost $5,800 in real annual income. That loss is thanks to the ‘hidden’ tax of inflation, caused by the Biden administration and congressional Democrats’ policies.

"Higher interest rates are now costing the typical family another $1,300 annually. Combined with a lower real income, this effectively costs families a total of $7,100 in annual income under Biden," Antoni added. "But some families are even worse off, especially if they are trying to buy a home. The monthly mortgage payment on a median priced home is up 84%, or $820, since Biden became president. That’s about $10,000 more per year and $300,000 more over 30 years for the same house." 

Georgians can expect to pay even more, according to an estimate from the Energy Department which said that the average household in the South will spend approximately $761 on natural gas bills this winter, representing a 24% increase from last winter, Patch reported. Georgia residents can also expect to spend approximately 12% more on their electric bills this winter than last winter.

Merchant Maverick ranked Georgia as the fourth-most impacted state by inflation in the country, behind only Louisiana, Florida and Tennessee, based on metrics including median household income and sales tax rates, The Center Square reported. Analyst Chris Motola said Georgia is “suffering from inflation, as rising prices, low incomes and high taxes leave precious little wiggle room in household budgets. Georgia’s median household income is just $56,628 (42nd highest in the country) and sales taxes add another 7.35% to every purchase. Meanwhile, the cost of expenses like housing, medical care and apparel have all risen precipitously across the U.S. south.”

Before Biden took office in January 2021, the annual inflation rate stood at 1.4%, but since then inflation has broken a 40-year-high record, rising significantly faster than wages and driving many into debt, according to a December report from the Independent Women's Forum (IWF). Almost two-thirds of Americans are now living paycheck to paycheck, with many taking on credit card debt to cover the costs of necessities. Collective credit card debt in the U.S. stands at $930 billion, representing a 15% increase over the last year.

The IWF pointed to the Biden administration's fiscal policies as a driver of inflation, highlighting expanded tax credits, paused student loan payments and tax-and-spend policies. The report highlighted recent legislation that includes a 15% corporate alternative minimum tax, a $6.5 billion tax on natural gas, a $12 billion tax on crude oil and a $1.2 billion tax on coal and noted that almost a third of corporate taxes are passed on to consumers through higher prices, citing a 2020 study by the National Bureau of Economic Research.