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| Illustration by Alexander Hunter/The Wash Times |
The hidden tax on all U.S. consumers
The inflation tax is beginning to creep up on consumers. According to the latest federal government data, year-over-year consumer prices rose by more than 5% economy-wide in June. That’s the most dramatic 12-month increase since 2008. Americans are especially being hosed at the gas pump. Prices are up by roughly 45% compared to last year.
Ballooning prices should be of no surprise. Inflationary pressures are ambushing the economy from all directions.
After being cooped up inside watching Netflix for a year, Americans are locked and loaded to go on a spending spree. As a result, too many dollars are temporarily chasing too few goods. At the same time, prolonged enhanced unemployment benefits that are keeping would-be employees at home have contributed to worker shortages. To attract staff, businesses must compensate entry-level workers with bigger bucks. Balancing the financial statements requires a bump in prices.
And then there is the massive amount of government spending from Republicans and Democrats alike that is sacrificing the value of our currency. Uncle Sam shelled out trillions of dollars in 2020 in response to the pandemic. Earlier this year, President Biden began traveling a similar path with his own $1.9 trillion stimulus package. While some extra expenditures were warranted given the severity of the health and economic crisis, bailing out state pension funds and financing pet projects was not. Now, the White House is proposing a $4 trillion “once in a generation investment.” These “once in a generation” spending ideas are redefining the term “generation.” --->READ MORE HERE
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| AP Photo/Richard Drew |
U.S. consumer prices spiked again in June, extending the highest inflation rate in 13 years and emerging as a political threat to President Biden’s big-spending infrastructure proposals ahead of next year’s midterm elections.
The Labor Department reported Tuesday that consumer prices rose 0.9% from May to June and 5.4% over the past year — the highest jump in 12-month inflation since August 2008. Core inflation, excluding fuel and food prices, rose 4.5% in the past year, the biggest increase since September 1991.
The number was once again well above private economists’ expectations, and Republicans have taken to calling the higher costs of gas, groceries and other necessities “Joe Biden’s hidden tax on Americans.”
The persistent rise in prices complicates the trillion-dollar infrastructure initiatives of Mr. Biden, who has been promising that the spike in inflation is a temporary response as the pandemic lockdown economy clanks back into service. But Republicans showed Tuesday that the consumer crunch is becoming a campaign issue. --->READ MORE HEREFollow links below to related stories:
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