JD Vance’s pledge to the working man will be the knockout blow that takes down Biden 

JD Vance brought the house down Wednesday night at the GOP convention. Since former President Trump tapped the Ohio senator to be his running mate, the author of “Hillbilly Elegy” has been slammed by liberals for being a Christian Nationalist, opposing abortion rights, earning the backing of racists and fascists and opportunistically supporting a presidential candidate whom he once criticized.  

But it is Vance’s vow to stand up for the working men and women of our country that truly enrages the left. That, after all, is supposed to be Joe Biden’s pitch.

“Scranton Joe” talks endlessly about building the economy from the “bottom up and the middle out,” but he has failed to do so. Democrats, led by Biden, have catered to the elites in their party, who are obsessed with identity politics, a costly and unworkable climate agenda, and an immigration policy that benefits drug cartels, not working-class Americans. 

As a result, we have a bifurcated economy where the rich are doing quite well and the poor are struggling, even though — incredibly — we are still running outrageous fiscal deficits. Someone should ask: why isn’t that flood of spending helping more people? 

Here is the truth. If Americans were prospering, Joe Biden’s age wouldn’t matter. Democrats would be running on their record rather than against Donald Trump. Trump would not be poised to win in November. 

Americans are not prospering. Some, to be sure — high earners who own stocks and homes — are doing great, watching as their net worth grows. But middle-class and low-income people in our country are falling behind. 

Those folks have soured on Joe Biden. In a recent Economist-YouGov poll, Trump leads Biden both with voters earning less than $50,000 (4 points) and with those whose income falls between $50,000 and $100,000 (3 points). The only cohort that favors Biden is the group earning $100,000 or more.  

How do we know things are tough for a great many Americans? 

First, consumer sentiment has trended downward in recent months; the reading for July was almost 8 percent lower than a year ago. The index measuring “current economic conditions” is off more than 16 percent year-over-year. Note that consumer sentiment under Joe Biden has persistently come in far below those reported during the Trump presidency, when it vacillated around 90, actually topping 100 in February 2020. Incredibly, this July’s level of 66 is lower than the 72 recorded in July 2020, in the teeth of the COVID uncertainty and shutdowns. 

Second, automobile repossessions are up, a lot. Cox Automotive reports that “repos” are up 23 percent over last year, and 14 percent compared to 2019. Some link the jump to high interest rates, reporting that car buyers with poor credit are paying as much as 20 percent of their income on car loans. Not being able to keep up with your car payments is an obvious sign of stress — people don’t give up their cars if they can help it.  

Third, consumer bankruptcy filings have jumped 15 percent in the first half of this year over the same period last year. Small-business failures are also rising, with subchapter S filings soaring 61 percent.

Fourth, the Fed’s latest Beige Book economic update reflects a slowing economy, impacting mainly low-income consumers. As summarized by economists at ISI Evercore, “In particular, almost every district mentioned ‘price-sensitive consumers only purchasing essentials, trading down in quality, buying fewer items, or shopping around for the best deals,’ supporting the view of a two-speed economy in which spending by a significant share of households is expected to slow down as policy remains restrictive.”  

It isn’t just low-income Americans who are feeling inflation’s pinch. A new survey from the National True Cost of Living Coalition shows that 65 percent of middle-class Americans (defined as “earning more than twice the federal poverty level”) said that they are struggling financially. In addition, a majority of Americans who make less than 300 percent of the federal poverty level (less than $93,600 for a family of four) are having difficulty managing debt. Almost half of Americans cannot save for major expenses at all. 

This is not how the Biden agenda should be working. Given the unprecedented flood of government spending in recent years, with outlays at levels normally reserved for national emergencies, it is incomprehensible that average Americans feel stressed. The reason is inflation, caused by that rush of spending, which has driven costs higher and left hourly workers behind.  

To counter higher costs, Joe Biden wants to impose rent controls and go after grocery stores for “price gouging.” A study by the Federal Reserve Bank of San Francisco debunks the idea that companies have profited at the expense of consumers. And nearly everyone with a pulse thinks that rent controls will only make our housing shortage worse.  

In coming months, the Trump ticket will try to convince voters that their plans to improve working peoples’ lives make sense. They will push for less costly regulations, lower taxes and an aggressive program of developing domestic energy, all of which were cornerstones of the Trump presidency.

Real annual income grew under Trump; under Biden it has declined. That says it all. 

Liz Peek is a former partner of major bracket Wall Street firm Wertheim and Company.