While economic indicators signal a healthy economy, consumer surveys reveal a lack of optimism among the American public regarding both the economy and their personal situations. Economist Peter Schiff has now commented on the impact of “Bidenomics” on consumers.
What Happened: Schiff, a gold bull, shared a video clip of WK Kellogg CEO Gary Pilnick‘s CNBC interview, where Pilnick discussed cereals as a preferred meal choice during times of financial strain. Pilnick highlighted the company’s effort to position cereals as a cost-effective dinner option, given consumers’ financial pressures.
“Cereal for dinner, probably, is more on trend now and we would expect it to continue as the consumers are under pressure,” Pilnick remarked.
Schiff criticized the trend, attributing it to #Bidenomics. He remarked, “Not only are families skipping breakfast to save money, but now some are eating their cereal for dinner as well. It’s reminiscent of the Jimmy Carter days when Americans wore sweaters at home to cope with high heating bills.”
A social media user who initially shared Pilnick’s interview clip raised concerns about alleged hazardous chemicals found in cereals, such as chlormequat chloride, linked to adverse health effects.
The “cereal for dinner” concept drew criticism from other social media users. One user expressed skepticism towards Kellogg’s profit motives during times of crisis, while another dismissed it as “garbage” and advised conducting individual nutritional assessments.
See Also: Best Inflation Stocks
Why It’s Important: Bidenomics has polarized the American public, predominantly along party lines. A Gallup poll released on Friday revealed President Joe Biden’s job approval rating dropped three percentage points from January to 38%, falling below the historically significant 50% threshold for incumbent re-election.
Sixty-one percent of respondents disapproved of Biden’s handling of the economy. Despite positive macroeconomic indicators, persistent inflationary pressures contribute to diminished consumer confidence. January saw annual headline and core consumer price inflation rates at 3.1% and 3.9%, respectively, with food prices rising by 2.6%.
Consumer spending remains buoyant, largely fueled by credit rather than increased income. With the Federal Reserve maintaining its stance on inflation control, the situation remains uncertain.
Supporters of Biden, such as Nobel Prize-winning economist Paul Krugman, attribute negative perceptions to partisanship rather than personal experience.
The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund tracking the S&P 500 Index, ended Monday’s session down 0.37% at $505.99, according to Benzinga Pro data.
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