Just when Joe Biden and the Democrats started boasting about a two cent decrease in gas prices, another round of statistics was released, highlighting just how poorly the U.S. economy is performing under a new administration.
The Bureau of Labor Statistics revealed that consumer price inflation in the United States has reached a rate of 6.8% — the largest year-over-year increase since June 1982, as well as the sixth straight month in which inflation remained above 5%.
Inflation is the erosion of a currency’s purchasing power over time. More dollars chasing fewer goods implies a diminished value for each dollar — resulting in pinched budgets for Americans who do not experience wage increases to match the rising price levels.
The following are some of the largest consumer price jumps between November 2020 and November 2021:
- Gas — 58.1%
- Used vehicles — 31.4%
- Hotels — 25.5%
- Meat, poultry, and fish — 13.1%
- Furniture and bedding — 11.8%
- New vehicles — 11.1%
- Domestic services — 10.2%
- Jewelry — 6.7%
- Electricity — 6.5%
- Food — 6.1%
- Apparel — 5%
- Milk — 4.6%
- Fruits and vegetables — 4%
According to a recent Gallup poll, American families — especially less advantaged ones, who Democrats purport to represent — are feeling pressure from the rising prices:
- 45% of American households report that recent price increases are causing their family some degree of financial hardship
- 10% describe it as severe hardship affecting their standard of living
- 35% say the hardship is moderate
Lower-income households are most likely to have experienced financial hardship due to price increases.
71% percent of those living in households making less than $40,000 a year say that recent price hikes have caused their family financial hardship. That compares with 47% of those in middle-income households and 29% in upper-income households.
The effect of inflation is more pronounced upon poorer households because they tend to have more of their wealth saved in the form of dollars — whether in cash, checking accounts, or savings accounts — than wealthier families, which are more likely to hold retirement accounts, property, or other assets that accrue interest or increase in value over time.
Indeed, low-income earners typically spend a greater percentage of their wages on food, fuel, and other basic necessities — the same items that are becoming less affordable due to inflation.
Many are aware, but some remain naïve of the overlying plan at play to keep most American dependent on the federal government all while simultaneously pushing for legislation that concentrates power federally.
The voting rights bill, Biden’s “build back better” plan, and more are coming down the pike, ready to bankrupt you even further.
Author: Sebastian Hayworth