The rise in prices across the Atlantic remains high-beyond 8 %-, complicating the economic assessment of Joe Biden a few weeks before the mid-term elections.
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Galloping inflation obliges, American retirees will benefit in 2023 from the largest nominal increase in their retirement by distribution since 1982: 8.7 % increase or $ 145 per month, after an increase of 5.9 % in 2022, announced, Thursday, October 13, the Social Security (social insurance of retirees, disabled and veterans). The 70 million American retirees will receive an average of $ 1,814 per month next year against 1,669 this year.
Unlike a widespread opinion, there is a retirement by distribution in the United States, created in 1935 under the New Deal by Franklin Delano Roosevelt and managed by the Social Security. Funded by a tax of 12.4 % on wages, it represents about half of the income from retirees and it has been indexed to the cost of living since 1975. The other part of their income comes in particular from retirement by capitalization, but They suffered a sharp fall with the drop in Wall Street. “This helps the elderly to have a little more room for maneuver to deal with inflation,” said President Joe Biden. Employees, they are less well lotis, who certainly had a nominal increase in their weekly salaries over a year by 4.1 % but real decrease by 3.8 %. This situation will hardly arrange with regard to the bad figure of inflation published on the same day.
The price increase for the month of September turned out to be worse than expectations: the figure certainly fell to 8.2 % against a higher 9.1 % reached in June. But this reflux is explained by the drop in the price of energy, with a gallon of gasoline spent from $ 5 in mid-June to 3.7 mid-September (it has risen to 3.9 since). On the other hand, inflation excluding energy and food has reached a record since 1982 with an increase of 6.6 % against 6.3 % a month earlier. The accommodation, which represents a third of the index, continues its increase with an increase of 6.6 % over a year. 2> “The Americans are taken in vice by the cost of living”
A few weeks before mid-term elections with an uncertain result, the republican camp fired red balls on Joe Biden: “The nightmare of inflation Biden destroys your retirement savings”, accused in his morning email Sean Hannity, the star host of Fox News. The President of the United States struggles to hide his embarrassment. “The Americans are taken in vintage by the cost of living: it has been true for years, and they have not needed today’s report to tell them. It is essential to work to give Air to the families of the middle class to meet their expenses, “he tweeted, making inflation a global phenomenon and praising the excellent attire of the job market-unemployment is at most low for half a century and the country has recreated all the jobs destroyed during the pandemic of COVID-19, a positive phenomenon but which accentuates economic overheating.
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