Biden's Independence Day Inflation: Less "Bang" for Your Buck

KEY TAKEAWAYS

• Inflation has skyrocketed since President Biden signed the Democrats’ “COVID relief” stimulus last year, reaching 8.6% in May, the third straight month of inflation over 8%.
• Persistently high inflation under Biden will cost American families an extra $7,620 in the coming year.
• With prices exploding across the country, inflation has soared to the top of American’s worries: 94% of Americans are concerned about inflation and 71% disapprove of Biden’s handling of the issue.

As Americans dive headfirst into summer, they are facing skyrocketing prices. Inflation is at a 40-year high. It is costing families across the country an extra $635 a month, and gas has topped $5 a gallon. Even fireworks are more expensive. It’s no wonder consumer optimism has fallen to the lowest level on record. In May, year-over-year inflation hit 8.6%, the third straight month of inflation over 8% and the 13th month of inflation at or above 5%.

Inflation Skyrockets Since Democrats Passed “COVID Relief” Stimulus

Despite warnings from Republicans, and even liberal economists, that it could lead to inflation, Democrats jammed through a $2 trillion spending bill in March 2021. Since the bill became law, inflation has soared, and economists point to the Democrats’ spending as the cause. According to a report by Morgan Stanley: “the slack created by the COVID recession is being absorbed much faster than usual. While some of this is due to the supply disruptions created by the lockdowns, we think it was more so due to excessive fiscal stimulus provided during the pandemic, particularly the last $1.9T package at the end of March 2021 just as the economy was already emerging from the lockdowns. In our view, this was what turbocharged consumption and drove inflation to 40-year highs.”

Democrats’ inflation spending is hurting American families. Families will pay an extra $7,620 in the coming year to have the same standard of living they had in January 2021, because of the inflation that has already happened since then. And it’s even worse in some parts of the country. In Colorado and Utah, inflation will cost families more than $9,600. It’s a coast-to-coast calamity, with Florida and California’s inflation rates relative to January 2021 both topping 11%. In America’s heartland, inflation costs families in Missouri an extra $663 per month, in Nebraska $677 per month, and in Wyoming $714 per month.

Inflation from Sea to Shining Sea

Families looking for good summer vacation spots are finding few affordable options. In Phoenix and Seattle, drivers are paying more than $5.60 a gallon for gas. But it’s not just high gas prices. In Seattle 45 of 59 items surveyed by the Council for Community and Economic Research have higher prices than a year ago, and 21 of those items have seen prices jump more than 10% in one year. In cities once considered affordable, like Atlanta, inflation is nearing 11%.

With prices surging all across the country, inflation has risen to the top of American’s worries: 94% of Americans are concerned about inflation. In one poll earlier this month, a vast majority of Americans – 83% – said the economy is bad, and only 27% said they have a good chance of improving their standard of living, a 20% drop from last year. A different poll found that 85% expect a recession in the next year, and another found that just 2 in 10 believe the U.S. is heading in the right direction.

Americans’ Concerns About Inflation Explode

Americans are also deeply unhappy about how President Biden is dealing with these vital issues: 71% of people disapprove of his handling of inflation, and 66% disapprove of his handling of the economy. Less than 40% of Americans approve of his overall job performance. More than half of Americans think the president doesn’t care about the needs and problems of people like them. Given their lack of confidence in the president, it’s unsurprising that two-thirds of Americans think inflation will get worse in the coming year.

Democrats are doing their best to prove Americans right, refusing to give up on their plans for more reckless spending that will drive inflation even higher.