The latest edition of Fox News Sunday, hosted by Chris Wallace, looks at the new way people are paying for their basic needs.
Wallace starts by noting that we now live in a world where the average person can access almost every service that a typical consumer needs, such as paying their mortgage.
“But now we live in an economy where many people can’t pay their bills, and that is a huge problem,” Wallace says.
“It’s a major reason why the American economy is in such a big hole right now.”
Wallace points to a growing trend where many Americans pay for their own basic needs, from rent and groceries to the basics like gas and electricity, with little to no oversight from the government.
“The Federal Reserve is actually going to have to take some responsibility for the cost of the services that you and I need,” Wallace said.
“I’m not saying that it’s not a problem that needs to be addressed, but the fact is, it’s getting to the point where it’s a huge, massive, systemic problem.”
Wallac says the reason the government doesn’t have a responsibility to ensure that Americans have access to these basic needs is because the federal government has no idea how much it spends on basic needs and it spends much less on the things that it should be paying for.
The government has spent nearly $8 trillion on basic necessities since 2007, and $1 trillion more in the last two years, according to data from the Federal Reserve Bank of St. Louis.
It spent just $10 billion in 2014.
“The Federal Government is the primary provider of basic necessities in our economy,” Wallace adds.
“And they spend more than any other agency on these basic necessities.”
He goes on to argue that the government has to spend more money on basic things to fix this problem.
“They’ve got to spend less money on the basic necessities,” Wallace notes.
“In fact, it was only a couple years ago that they spent $30 billion on basic supplies.”
The Fed’s latest interest rate policy report for the first quarter of 2016 shows that the federal funds rate is expected to remain low for the next six months.
This means that the Fed is expected give its final decision about interest rates on March 15.
The Federal Trade Commission recently revealed that the average consumer spent $1,879 per year on basic household expenses in 2015.
The average American spends $5,000 a year on gas, and the average American eats just $300 a day.
In addition, the average worker spends $10,000 per year and the median American spends just $40 a day, according a Pew Research Center report.
The average American spent $3,000 on food in 2015 and ate $12,000.
The Fed is also keeping its interest rate low to encourage a balanced approach to consumer spending, and it has been pushing the Federal government to increase spending on its programs like the Supplemental Nutrition Assistance Program and unemployment insurance.
Wallace says that we need a bigger government.
“What we have to do is have government that actually gets the job done,” he says.