5 Ways Biden’s USA will Affect Your Hard-Earned Savings in 2024

Unless you have been living under a rock, you must be aware of the assassination attempt made on our ex-president, and the candidate for the upcoming presidential elections of November, Mr. Donald Trump.

It paints quite a dismal, but accurate, picture of the state of safety and security of us Americans and our property in the current state of policy and governance. And with the elections just around the corner, the abyss is staring hard at us.

What is Bidenomics?

What’s the abyss, you ask? Well, short answer, Bidenomics is. To elaborate, simply that of the state of affairs, which is both a cause and effect of these uncertainties creating a ripple effect on every sector of the economy.

Especially, the financial sector, where investors are taking steps, that can best be described as “beyond measured”, so as not to fall prey to the future economic policies under the continued Joe Biden administration. This is dubbed Bidenomics- a portmanteau of Biden and economics.

“Bidenomics is about growing the economy from the middle out and the bottom up, not the top down. It’s an economic vision where we make smart investments in America, educate and empower American workers, and promote competition to lower costs and help small businesses.”, Biden described his economic philosophy via the social media platform X (formerly known as Twitter) in June 2023.

Positioned in opposition to trickle-down economic theory, which holds that reduced taxes for wealthy individuals and corporations will result in benefits for other participants in the economy as well, it is centered on the pillars of public investment, empowering middle-class workers, and promoting business competition.

5 Ways Bidenomics Affected Household Savings So Far:

However, in spite of the tall claims, as per a report published by Bryan Mena of CNN in April 2024, based on an analysis from the American multinational financial services company Wells Fargo, the personal saving rate of Americans fell to 3.6% in February, the lowest level in more than a year, and in recent years it has hovered below levels seen in the decade before 2022.

1. Negative Savings– According to Moody’s Analytics data, lower-income consumers have negative savings, so they are spending more on a monthly basis than they’re bringing in. That could be due to the use of credit like reliance on Buy Now Pay Later schemes and credit cards, not purchasing assets, pulling out money from other assets such as retirement accounts, and so on.
2. Spending Psyche Change– Speaking to the Bell, Shannon Seery Grein, an economist at Wells Fargo and one of the authors of the report, said that coming out of the pandemic, households had to spend at elevated rates particularly on services, so they continue to change everything to fit their spending patterns.
3. Vulnerable to Downturn– Long story short, lower income households are saving less monthly, becoming more vulnerable to a downturn because it means they are much more dependent on their income. Many Democratic reports suggest household gains by income driven by rising home values and the stock markets, without mentioning that it only positively affects households with such assets rather than those at the bottom of the income spectrum, a central feature of Bidenomics.
4. Impact on Retirement– Financial planners John F. Pace and David Blain predict a continuation of these policies could have an impact on inflation, tax-advantaged retirement accounts and Medicare- all of which could affect your retirement savings- reports GoBankingRates.
5. Household Debt Increase– Numerous studies have shown that the U.S. household wealth gain over Biden’s administration is the smallest since the rebound from the coronavirus pandemic began. The value of equities held by households fell, with household debt growing at a slowed annualized rate of 6.2% in the third quarter of 2021 when Biden first came to power.

As we navigate through these unprecedented times, it is essential to remain vigilant and analyze the potential implications for the precious metals investmentindustry, long considered to be a safe haven for long-term and risk-free investment.

How Precious Metals Investment Can Combat Dwindling Savings?

To combat the savings crisis accelerated by the Biden presidency’s economic agenda based on tackling the COVID-19 pandemic, economic recovery, eradicating racial discrimination, and dealing with climate change, investing in precious yellow and silver metals must be considered.

Precious metals are a great hedge against inflation, something that is expected to be on the rise if Biden gets reelected because of his economic policies. Here, let us explain how. A critical review of his economic policies clearly demonstrates how his policies and budget allocations almost always keep inflation consistent as a byproduct, a trend safely assumed to be carried over.

The Inflation Reduction Act enacted by Democrats in 2022 gave $271 billion in tax credits to pay for “green” energy projects that even liberals admit are a boon for the top 1 percent, reports a fact check analysis by the Federal government’s U.S. House Committee on the Budget.

These out of control “green” handouts are going to cost American communities an estimated $1.2 trillion, according to independent analysis by Goldman Sachs, nearly $1 trillion higher than original estimates.

In this environment, maintaining a solid investment portfolio by diversifying it as much as possible (for instance, to include silver IRA benefitsand gold IRAin 2024) allays financial risks and solidifies the odds of consistent and high reward low risk returns on investments especially through retirement accounts.

Coins like the American Eagle, or the Canadian Maple Leafcarry intrinsic value as collectibles or investment means and should be bought along with physical bullion bars to create and sustain physical assets, that are guaranteed savings protection against aggressive economic policies.

Want to learn more about investing in precious metals in 2024? Check out our blogs to get the current updates in the gold, silver, platinum and palladium markets.

Disclaimer:All Market Updates are provided as a third-party analysis and do not necessarily reflect the explicit views of Wall Street Metals and should not be construed as financial advice.