According to just released Labor Department figures, inflation has surged to an annual rate of 6.8 percent. The last time inflation was this high Ronald Reagan was beginning the second year of his presidency.
That’s, of course, bad news for President Biden and the Democrats, as any number of conservative pundits are very happy to point out.
But to hell with the politics for once. The real story is that inflation is bad news for ordinary Americans who live and work in the heartland.
Less than 24 months ago, inflation was largely regarded as a relic of the 1970s. Those of us who were in the work force then remember the astronomical interest rates, crushingly high prices for gasoline (assuming you could find gasoline at all), and restaurant menus with prices scratched through in favor of higher prices written in by hand.
Today’s news reminds us of those bad old days. According to a study released this week by the University of Pennsylvania Wharton School of Business, it now costs the average American family $3,500 more per year in everyday expenses just to maintain last year’s standard of living.
Prices are up pretty much across the board. Gasoline costs 58 percent more than it did this time last year. A new car or truck will cost 31 percent more. Housing is up nearly 24 percent. Food, furniture, hotel rooms, rent cars, TVs and nearly everything else have seen high single digit and double-digit price increases.
Inflation is nothing less than a tax – a tax that is markedly different from the taxes imposed by government in two important ways. First, there are no loopholes or deductions. Everybody who buys anything pays the tax imposed by inflation. And second, unlike our progressive tax code, under which higher earning individuals bear the lion’s share of the tax burden, inflation is a regressive tax. The burden of inflation is borne disproportionately by people with low incomes. The tank of gas that costs 18 to 20 dollars more than it used to is shrugged off by lawyers, doctors, celebrities, well-connected politicians and tenured college professors. But it’s a serious hardship for the hourly wage single mother who works at Wal-Mart.
We’ll stipulate that a good portion of the problem of inflation can be laid at the doorstep of COVID. The disruptions attendant to the pandemic have put many things – from finished goods to the component parts that make them – in short supply.
But with that said, why then Biden policy? Nearly all of Biden’s policy agenda – from shutting down the Keystone XL pipeline to restricting domestic oil and gas production to providing overly generous unemployment benefits to the irresponsibly expensive “Build Back Better” bill – throws fuel on the inflation fire.
Which most hurts “little guys” and the poor and minorities – the very people that Democrats insist that they most care about. If you’re among these, Biden wants you to believe that he and the Democrats are your friends.
Believe me, he and they, are not.
Inflation has a similar effect as the “Fair Tax Plan” or consumption tax, but without eliminating the IRS nor the need to file an income tax return. As you point out, inflation is very regressive, as it creates more hardship for lower income families. Additionally, the U.S. dollar is devalued in comparison to other currencies, which is a windfall for those shorting the dollar. What we are seeing with inflation, and all of the other well-planned tactics of this administration, is the methodical destruction of our constitutional republic. What are the odds that all of these destructive policies are due to incompetence and stupidity? I would guess the odds would be near 0%, as a blind dog will find at least one fire hydrant in 11 months! It is only logical to assume that those running this country are being very efficient in accomplishing their goals; not 100% yet, but just be patient.
Ron, you are so right! “What we are seeing with inflation, and all of the other well-planned tactics of this administration, is the methodical destruction of our constitutional republic.” The Demoncrats have NO shame and NO fear of the American people since they have been getting away with their formula of DECEPTION for decades with the complicit and powerful megaphone of the Leftist Media and all other American/Globalist institutions that have been infiltrated with the Leftist dogma of Collectivism (Marxism/Communism by another name). Let individual Liberty be DAMNED.
We can conclude from current events that we are seeing the Cult of a “properly managed” Dictatorship being installed in this Country in order to force opposition to, and elimination of, the quaint old idea of Unalienable Rights and our God-inspired Constitution (that released us from the historical tyranny of the human race by Evil men). One year from now (or less) we will know whether our Republic and the worldwide flame/flag of Liberty survived: “Gave proof through the night that our flag was still there.”
Well said and dittos from our old friend Rush! Let us pray that Old Glory will still be waving and representing a constitutional republic.
Good to know someone on the right doesn’t believe all the insane rhetoric on current economic conditions. Yes covid has certainly taken it’s toll and coming back will take some time, it’s not ” Biden Policy” as so many keep spooing obsessively. Energy business took significant down turn just prior to covid and then took a big hit from virus,obviously with drop in demand,in turn investment in such did same. Oil Keystone would transport is getting here already by rail tank car according to Fox’s favorite pipeline worker ,Buffets railroad. According to Shawn all it would take is a few phone calls to a few specific states and it could be resolved,I never thought it could be that easy,who’d thought,boy he sure must think a lot of folks are ignorant or dumb,maybe both. Neither party is for the working class,everyday citizen, it’s never about the majority of people, regardless .
Policy IS POLITICS to the Commiecrats! Why else would he pour fuel on the deliberately set inflation fire with open borders and untested illegal aliens by the millions, abandonment of energy independence, COVID-19 FEAR hysteria that severely limits productivity (that has not been justified with REAL DOCUMENTED scientific evidence), and provoke a deliberately weakened Dollar and Military, while using the COVID so called “pandemic” to steal the last National election in the middle of the night, simultaneously, in all of the battleground States by stuffing unverified ballots of phantom voters that didn’t exist?
FEAR AND INTIMIDATION is the POLICY that these tyrants are using to force American citizens into NEEDING more “aid and comfort” from the Commiecrat “inflation” piggy bank in order to establish their Marxist dictatorship with Nazi-like medical and financial tyranny over our bodies and wealth from cradle to grave. INFLATION IS the KEY to Commiecrat domination as the working class becomes more dependent on government welfare because their pay check buys less and less – – “the very people that Democrats insist that they most care about.” This is DECEPTION at its best! Isn’t Argentina a perfect example of this eradication of American Liberty?
Wow ! Sounds like you’ve got it all figured out as always, hope you’re not to disappointed if it all never happens, regardless there is always another angle or interpretation to see what one wants to see. I admit the other possibilities are not as exciting for some folks I’m sure, thriving on gloom and doom.
Very enlightening Matthew! You have certainly opened my eyes to better understand how certain politicians are in office. It has always puzzled me to see politicians being elected who do not have a clue about free markets or protection of our constitution, but now I feel that I have a better grasp on how it happens. Thanks.
Glad I could help . I personally have always wondered how people could believe so much by mere talking points as there often called being made by certain individuals normally media personalities,declarations made has to what is really going on , but never offer an incling much less elaborate and detailed explanation how it is so and so many take it ” hook line and sinker “. Just say it is so and it is , incredible ! Folks just love conspiracy, gloom and doom ,fear mongering. As I’ve always said it generates a lot of money in many different ways, huh , it’s that money thing again, follow the money. Donate ,donate it’s the only hope our nation has. Let’s not forget vote ! and I’ll save us all from the evil tyrannical “KRAKEN” . I guess supply and demand ” free market ” only applies when it’s convenient , how mysterious.
Ron, I love the public exposure of the diseased mind that has been fully polluted by the Marxist Cult of “NO COMMON SENSE to accept REALITY and the immutable Laws of Nature and of our God”.