The stock market set “records on my leadership, while making matters more equitable for blue collar workers,” President Joe Biden said earlier this year. Investors in the United States have reportedly lost an estimated $7.6 trillion since Biden entered office. The records that were allegedly set under his direction were destroyed this summer. Additionally, American working class people have lost $4,200 in real income due to inflation, which has been made worse in part by the president’s executive orders, and would now need to spend an extra $11,500 just to hold on to their past quality of living.
According to CNBC, American ownership of company equities and mutual fund stocks decreased by $9 trillion from $42 trillion at the start of the year to $33 trillion by the end of Q2 2022.
Projections of wealth loss from money markets somewhere between $9.5 trillion and $10 trillion due to further sharp declines in major market indexes since July (e.g., the S&P 500 stock index is down 23% and bond stock index funds are down 15% this year).
Although the richest 10% of Americans have dropped $8 trillion in stock market fortune this year, it’s not only professional traders like House Speaker Nancy Pelosi and her spouse or tech billionaires who may be suffering the effects.
According to Fox News Digital, taxpayers, pensioners, and savers who have meticulously invested their money in IRAs may be particularly heavily hit.
American retirement funds have lost billions of dollars in value.
According to Alicia Munnell, head of the Center for Retirement Studies at Boston University, Americans with 401(k) plans lost over $1.4 trillion between year-end 2021 and June, while those with IRAs lost $2 trillion.
The Wall Street Journal revealed last month that, according to statistics from the Wilshire Trust Universe Analysis Service, “public retirement plans declined a median 7.9% during the year ended June 30… their poorest yearly performance since 2009 and a new indicator of the ongoing financial hardship facing governments and retirement investments.”
This “damage,” which primarily took place in April, May, and June, has been blamed on “strong pressure brought on by worries about inflation, high market values, and a widespread retreat from riskier investments.”
These declines, which “battered family and institutional investors equally,” will result in greater annual retirement payments, less services, and increased taxes for state and municipal governments in the future.
“Have hundreds of billions less on hand than they will require to satisfy future payout guarantees,” the Journal reported of public pension systems.