The Real Inflation Drivers
Families are experiencing financial hardships because wages have not kept pace with rising costs. Both wholesale costs and consumer prices have surged, with no evidence of price gouging.
The primary cause of historic inflation is the expansion of the money supply by the Federal Reserve and significant deficit spending by the government. Although supply chain issues, which were resolved nearly two years ago, are often cited as reasons, this is incorrect. Both wholesale costs and consumer prices have surged, with no evidence of price gouging.
While the inflation rate is slowing, it still continues to rise at a rate of 2.9% according to the most recent data from July. Since President Biden's inauguration, average prices have increased by over 20%. However, this figure does not fully capture the actual rise in common expenses that many families face, which have increased by over 30%. For instance, the prices of meats, poultry, fish, and eggs are 31.3% higher now compared to when Trump's term ended.
As a result of high inflation, the bottom 80% of families are experiencing financial hardships because wages have not kept pace with rising costs. When adjustments for part-time work are considered, real wages are approximately 4% lower since January 2021, when Biden took office.
The skyrocketing increase in public debt, reflecting government deficit spending, along with the massive expansion of the money supply, are the primary reasons for historic levels of inflation. Additionally, counterproductive climate change policies and a war on fossil fuels significantly contribute to the rising costs of food, transportation, and energy.
Would be wonderful if Comrade Kamala knew anything about economics. I bet she doesn't read Substack. Maybe she could subscribe to Vaughn and maybe a healthy dose of Kudlow once in a while. Nah. Fagetaboutit....