While the White House argues against a commonly accepted definition of a recession – two consecutive quarters of negative GDP growth – as the economy craters under President Biden's lavish spending policies, one of the biggest victims has been the American dream, Fox Business host Charles Payne said Wednesday.
Payne, host of "Making Money," noted Federal Reserve Chairman Jay Powell raised interest rates 0.75%, which will cause some debtors to hit the brakes on taking out loan.
With the average home price dropping nearly $100,000 in two months, rents skyrocketing and inflation causing companies like McDonalds to increase prices, Payne argued the collective effect has been the dissolution of the American dream:
"You know what the sad part is? A large part [of the population] is already pushed out, right. There are no starter homes and all the houses have been being bought by Wall Street, more recently, by foreign buyers, by second buyers, by cash buyers. This makes it prohibitive," he said.
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"You talk about the American dream. It has gone completely kaput."
"It is absolutely nuts: In the meantime, you know, it's gone through the roof even faster than all of this? Rents. That's one of the things driving the consumer price index. Rents are on the rise like crazy and there's nothing out there stopping them."
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Payne reported Powell said Wednesday he will work to break the back of the current economy, which Payne described as registering a "fever."
With moderate West Virginia Democratic Sen. Joe Manchin returning to the negotiating table with Senate Majority Leader Charles Schumer, D-N.Y., on sweeping government spending and environmentalist legislation, host Sean Hannity said the Mountain Stater doesn't understand what his reversal will mean for the working class.
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He and Payne agreed that corporations facing a new 15% minimum tax will not pay it themselves but either pass it along to already burdened consumers or lay off workers to regain losses.
"They pass on as much as they can pass on, and if they can't pass it on, they start firing people," Payne said.
"[Corporations] are used to ups and downs. They know that the cycle changes. If they have to go into some sort of foxhole and wait out a couple of years until a more business-friendly administration gets in, they'll do that --But the average person's going to pay the price once again."
"Our country will pay a heavy price," Payne predicted.
