The consumer price index remained high at 8.2 percent on an annualized basis in September, according to the Bureau of Labor Statistics (BLS). Core inflation, which excludes more volatile food and energy prices, reached a 40-year high at 6.6 percent. This suggests the problem of inflation will be lasting and painful.
In January 2021, before Joe Biden took over the presidency, annual inflation was at a stable 1.4 percent. Just one year into Biden’s presidency, inflation has increased sixfold. While inflation has already hit American families hard, Democrats are pushing policies which would make this problem even worse, like trillions in tax increases and wasteful spending.
The erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings have decreased by 3.8 percent over the past year.
According to BLS, the cost of many goods and services have increased significantly over the past year:
- Energy has increased by 19.8 percent.
- Gasoline has increased by 18.2 percent.
- Bacon has increased 7.9 percent.
- Chicken has increased 17.2 percent.
- Eggs have increased 30.5 percent.
- Furniture and bedding have increased 10.1 percent.
- Men’s suits and sport coats have increased 9.5 percent.
- Airfares have increased 42.9 percent.
- Cereal has increased 17.7 percent.
- Rice has increased 13.6 percent.
- Milk has increased 15.2 percent.
- Coffee has increased 15.7 percent.
- Butter and margarine have increased 32.2 percent.
- Public transportation has increased 27.1 percent.
- Delivery services have increased 16.4 percent.
- Pet food has increased 14 percent.
The Biden Administration’s policies are largely to blame for inflation. President Biden has passed bills and executive orders that pay Americans not to work, expand tax credits, pause federal student loan repayments, canceled the Keystone Pipeline, and more.
It’s hard to believe that, during this time of high inflation and a recession, Democrats have passed a massive tax-and-spend plan.
Democrats’ reconciliation bill – signed into law when inflation was already surging – contains substantial tax hikes including a 15 percent corporate alternative minimum tax, a $6.5 billion natural gas tax, a $12 billion crude oil tax, a $1.2 billion coal tax, and several more.
These tax hikes will be passed on to consumers through higher prices, as if rampant inflation wasn’t painful enough. According to a 2020 National Bureau of Economic Research paper, 31 percent of the corporate tax rate is borne by consumers through higher prices of goods and services.
Reckless spending on climate initiatives, Obamacare subsidies, and supersizing the IRS –as contained in the bill – will also exacerbate inflation. In August, the Biden Administration also announced a radical plan to forgive student loan debt, extend the moratorium again, and reform repayment rules. This plan could cost up to $1 trillion, again, exacerbating inflation.
The Biden Administration and congressional Democrats have proven that they are willing to sacrifice Americans’ financial security in order to pass their Leftist agenda right before they lose control of the government.