President Joe Biden promises to protect America’s poor from his tax hikes, yet his economic agenda is fueling inflation — which is itself a tax that hits struggling families hardest.
And this is no temporary blip as the economy restarts after the lockdowns, as Democrats would have us believe. On Monday, The Wall Street Journal reported that economists it surveyed are warning Americans to brace “for several years of higher inflation than they’ve seen in decades.”
They predict the core inflation index (which excludes food and energy) to average 2.58 percent annually through 2023 — levels not seen since 1993. From 1995 to 2019, it averaged just 1.7 percent a year.
The Federal Reserve guesses that bump will be temporary, but economist Joel Naroff warns, “We’re transitioning to a higher period of inflation . . . than we’ve had over the last 20 years.”
Americans already expect ever-greater prices, with inflation worries hitting their highest level in eight years, per the Fed’s June survey. The median expectation is that price-growth will hit 4.8 percent in a year, up by nearly a point since May. Such concerns themselves feed inflation, as suppliers jack up prices in anticipation of their own higher costs.
Meanwhile, the Labor Department last month reported a 5 percent annual growth in consumer prices, the sharpest jump in 13 years.
Pandemic-related supply bottlenecks and sudden demand after a year of lockdown each plays a role. But the Democrat-pushed cash bath for Americans since the COVID outbreak has rapidly fanned demand without boosting supply.
The $300 jobless benefit kept workers home, pushing up wages and holding back supply, with the prez suggesting that companies simply increase pay to “compete” with the government’s stay-home perk. But what good are higher wages if they’re more than canceled out by higher prices?
Dems spent $1.9 trillion on their March “stimulus” alone, though the vaccine had already been rolled out for three months. And Biden wants trillions more, some of it to be paid for by corporate tax hikes that would themselves force up prices as companies pass the cost on to customers.
Biden reportedly aims to be a new FDR, but his policies could make him a new Jimmy Carter: a president presiding over a ruinous rise in inflation that slams the very Americans Democrats claim to care about most.
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