The consumer price index remained high at 8.3 percent on an annualized basis in August, according to the Bureau of Labor Statistics (BLS). Economists had originally expected inflation to slow to 8 percent in August.
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 by over 6 times. 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.
Since July of 2021, the Biden administration has been insisting this problem would go away. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen described this inflation as “transitory.” Evidently, those claims have not held up. The Biden administration has also tried to blame inflation on the Russia-Ukraine war, despite surging inflation pre-existing the conflict by nearly a year.
The erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings have decreased by 3.4 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 23.8 percent in the past 12 months.
- Gasoline has increased by 25.6 percent in the past 12 months.
- Bacon has increased 9 percent in the past 12 months.
- Chicken has increased 16.6 percent in the past 12 months.
- Eggs have increased 39.8 percent in the past 12 months.
- Furniture and bedding have increased 12.8 percent in the past 12 months.
- Men’s suits and sport coats have increased 11 percent in the past 12 months.
- Airfares have increased 33.4 percent in the past 12 months.
- Cereal has increased 16.4 percent in the past 12 months.
- Rice has increased 13 percent in the past 12 months.
- Milk has increased 17 percent in the past 12 months.
- Coffee has increased 17.6 percent in the past 12 months.
- Butter and margarine have increased 29.3 percent in the past 12 months.
- Public transportation has increased 21.1 percent in the past 12 months.
- Delivery services have increased 11.5 percent in the past 12 months.
- Pet food has increased 13.1 percent in the past 12 months.
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 – already signed by President Biden – 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.