by Rep Ralph Norman at Washington Times
Every month since President Biden has been in office, inflation continues to rise. The latest Consumer Price Index report for March showed that inflation is at a 40-year high, and prices have risen by 8.5% during the last year. Remember, the Federal Reserve typically strives to keep inflation around 2%, which means further action from our central bank in increasing interest rates is likely to come.
However, there’s no clear indication when rising inflation rates will even plateau, let alone return to normal levels.
You see, inflation disproportionately hurts lower-income Americans, who may have fewer means to absorb these price increases — like a regressive tax, of sorts. In fact, according to the Penn Wharton Budget Model, Mr. Biden’s inflation tax will cost the average family at least an additional $5,000 per year. Even worse, wage growth has not kept pace with inflation. Although nominal wage growth reached 5.7% year-over-year last month, inflation-adjusted wages actually represent a decline of 2.7%.
With meat prices up nearly 15% from a year ago and gas prices still above $4-per-gallon across the nation, most American families are having to cut spending, save less, take on debt or a combination of all three. The impact this could have on the development of children, domestic violence or retirement for future generations cannot be understated.
One argument Democrats like to bring up as a reason for rising prices is Russian President Vladimir Putin’s invasion of Ukraine. But referring to increasing costs as “Putin’s price hike” is misleading as inflation under the Biden administration began long before Mr. Putin invaded. In fact, almost in lockstep with Mr. Biden’s inauguration, inflation began its historic run. Surging prices are primarily the result of Washington’s reckless, out-of-control government spending. Congress approved nearly $5.9 trillion in total spending in the last two years, including excessive government stimulus programs provided under the guise of pandemic relief and a $550 billion infrastructure package that was essentially a Trojan Horse for the Democrats’ Green New Deal.
Despite worsening inflation…
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