(RightWing.org) – Americans are feeling the crunch of inflation from the grocery store to the gas pump and everywhere in between. In January, wholesale prices increased 9.7% from the previous year, while consumer prices were up 7.5%. It seems that a new policy is contributing to this price hike.
The jump over the previous year is the largest increase in year-to-year inflation since the benchmark was set at 7.6% in February 1982. According to a Moody’s Analytics analysis, that translates to the average American spending $276 more per month. The consumer price index jumped 0.6% in the 1-month period between December 2021 and January 2022.
Biden’s Plans Miss the Mark
As the economic crisis grows, President Joe Biden’s response stays the same. Brian Deese, director of the White House National Economic Council, said “The dynamics of the modern American economy — the increased consolidation and lack of competition — has distorted market incentives in important ways.”
Biden seems convinced that a lack of competition caused by consolidation is responsible for the country’s economic woes, despite calls from critics to look elsewhere. New York University economist Thomas Philippon says that while competition is always a good thing, “it is unlikely to have a big impact in the short term.”
The council’s focus on competition and regulation isn’t working. Officials in Biden’s own administration admit that the council’s objectives aren’t indicative of the country’s current needs and that something more has to be done to curb the ridiculously high inflation pounding Americans’ wallets.
Neil Bradley, executive vice president and chief policy officer of the US Chamber of Commerce, said Biden’s policies may actually drive inflation further. Bradley says they would “strangle growth” and “actually lead to more inflation.”
Lower-Income Americans Affected
Lower-income Americans, the group the Left says they want to help the most, feel the bite of inflation more than the upper class, according to Wells-Fargo’s analysis. Low-income earners face higher rents, higher food prices, and a steadily climbing used automobile market. According to FOX News, the cost of a used vehicle rose 1.5% last month and is up more than 40% from the previous year.
Utilities, gasoline, and other essentials all help contribute to the tough economic situation with no immediate relief – or long-term solution – in sight.
While low-income earners face a tough struggle, middle-income families are often the hardest hit. Those families tend to spend more on transportation costs and non-commodity items and entertainment. When they spend less due to inflation, it directly affects the service industry, once again hitting the lower-income earners right in the pocketbook.
With few options left, the Federal Reserve may have to raise interest rates in an effort to curb spending.
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