Financial writer Stephen Moore told Newsmax Wednesday that the average American family is $4,000 poorer under President Joe Biden's economic policies than during former President Donald Trump's administration.
"What really worries me is more on the consumer side. We're going to see a report coming out very soon that shows, for the first time in American history, that consumer debt on credit cards will be over $1 trillion," Moore said during "Rob Schmitt Tonight." "That's about a 30% increase in just two years."
Moore said that while inflation increased prices by around 18%, wages have increased only around 14%, leaving a 4% "gap" to maintain their standard of living, which translates to about $4,000 a year for the average family.
Forbes Magazine Editor-in-Chief Steve Forbes joined Moore on the broadcast and said Biden is going to "have to run on 'Bidenomics'" in the upcoming 2024 presidential race.
"He's going to run on Bidenomics to some extent," Forbes said. "I mean, you have to run on the economy to some extent, because it's such a big thing. It's everybody's story."
Forbes said that the administration keeps trying to assure the public that the economy is getting better and that it addressed the horrible economy left to it by Trump, which he said is a lie.
"How does that work for him when he pretends the economy was a wreck when he took office, which I think most people realize is not true?" Forbes asked. "And you try to say, Well, things are getting better now and say it is the Republicans' fault for any pain you feel. It's not going to work. People see through it. That's why Biden's ratings, in terms of economic performance, are in the proverbial toilet."
Forbes also said that commercial real estate and businesses are potentially in trouble for taking on so much debt in the past several years because interest rates were minimal.
"When you have a whole generation of companies where you can get money free, companies can get in trouble, can still get loans to get them through," he said. "You also have countries that borrowed a lot. It was wonderful; politicians loved it. They could spend and the cost of financing that debt went down."
He said it was similar to borrowing money on your credit card, but deducting the interest so that the payments went down.
The problem, however, is that many of these commercial loans are now either coming due or need to be refinanced with a much higher interest rate.
"So that is what distorted the credit markets. And now we have to, as I say, sort the thing through," he said. "It's a mess."
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