2022: A Year of Economic Pain

Contact Your Elected Officials

Biden inflicted an economic “Annus Horribilus” — and pensions are at risk.

Americans endured a year of economic misery in 2022, as proven by dreadful Main Street economic trends plus plunging capital markets. It was truly an economic โ€œAnnus Horribilusโ€ and points to further pain ahead in 2023 unless aggressive policy reforms begin.

In 2022 citizens faced the toxic combination of fast-rising prices for the essential goods and services of life alongside a materially slowing growth trajectory. In fact, Real Wages — meaning personal incomes adjusted for inflation — have now declined a stunning 20 straight months. This longest-ever streak of wage depression compels citizens to cope with a massive spike in credit card debt. In fact, dangerous, high-interest credit card balances soared higher in 2022 at the fastest clip in two decades.

Given precarious household budgets, it is little wonder that Consumer Confidence tanked. The widely watched University of Michigan survey of consumer sentiment reached the lowest level in the post-WWII era. Biden and his policies sent confidence lower than during the 1970s Oil Embargo, the Dot-Com Crash, and the 2008-09 Credit Crisis.

Here is the chart, showing data back 40 years:

That collapse in confidence naturally led to pain for Consumer-facing companies as well. Capital Markets suffered a horrific year overall, but Consumer names fared the worst.

Here is a chart of the Consumer Discretionary Sector using the XLY, an ETF (exchange traded fund) that combines dozens of key companies into one ticker. Note the consistent downtrend all year, resulting in year-to-date whopping losses of -37%.

Retailers endured particular pain. Not only did many Retailers languish because of a weakened Consumer customer base, but they also struggled to persevere in an era of dominance by just a select few online commerce firms, especially Amazon and Walmart.

By Steve Cortes

Read Full Article on SteveCortes.com

Substack
Substackhttps://substack.com/
Substack believes that great writers, bloggers, thinkers, and creatives of every background should be able generate income from their audiences on their own terms.

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

Alligator Alcatraz: A Bold Step Toward Secure Borders

Alligator Alcatraz funded through FEMA, represents a decisive move by the Trump admin to address illegal immigration with efficiency and resolve.

Is America Broke?

Silicon Valley investor and economic commentator Balaji Srinivasan made...

Hungary: Prideโ„ข Cometh Before the Color Revolution

The EU engaged in a diplomatic siege of the Eastern European nation-state of Hungary pressuring it into embrace global trannyism or face wrath of Brussels.

Understanding the Trump/Musk Feud

The passion Trump and Musk exhibit over the OBBB is not contrived or for show. Each is addressing the problem from completely different approaches.

Noem Waives Environmental Restrictions to Fast-Track Water Barriers in Rio Grande

DHS Sec Kristi Noem waived federal environmental laws to fast-track construction of 17 miles of waterborne barriers in the Rio Grande in South Texas.

Federal Officials Warn of โ€˜Lone Wolfโ€™ Terror Threats on July 4, NY Governor Says

NY Gov. Kathy Hochul confirmed that federal officials informed her about a possible terrorist threat ahead of the July 4 Independence Day holiday.

Record 1 in 5 Buyers of New Cars Committing to $1,000-Plus Monthly Payments: Edmunds

The share of new car buyers committing to make monthly payments of $1,000 or more hit an โ€œall-time highโ€ in the second quarter of 2025.

US Economy Adds 147,000 New Jobs, Unemployment Rate Dips to 4.1 Percent in June

The U.S. job market remained strong in June, as labor conditions continued to hold up amid economic uncertainty.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshippingโ€”rerouting goods through a third country to disguise the origin of the productsโ€”is a focal point of trade negotiations with Asian markets.

White House Report Reveals Top Earners, Staffers Working for No Salary

The Trump admin released its yearly report that shows the salaries for White House staffers, also revealing officials who arenโ€™t accepting salaries at all.

Transportation Secretary Urges Governors to Remove Political Messages From Crosswalks, Intersections

Duffy sent letters to governors, mayor of D.C., and gov of Puerto Rico urging them to remove political messaging from intersections and crosswalks.

Bessent: US, India Near Agreement to Lower Tariffs

The United States and India are โ€œvery closeโ€ to a trade agreement, Treasury Secretary Scott Bessent said on Tuesday.
spot_img

Related Articles