The prices of goods and services purchased by U.S. consumers rose at a faster rate in August compared with July, data from the Bureau of Economic Analysis showed Friday. Both
headline and core prices exceeded economist expectations. According to Econoday, cited in an article in Breitbart Business, the median forecast was for a two-tenths of a point gain in the headline price index and 0.5 percent.
The personal consumption expenditure price index rose by three-tenths of a percentage point in August after declining one-tenth of a point in July. Core PCE prices, which exclude food and energy, rose 0.6 percent after a flat July. That matches the two-decade high hit June, reported Breitbart.
Of course, Democrats have a lot of bad ideas about how to tame inflation, starting with imposing price controls on goods and services.
As our friend Stephen Moore pointed out in the September 29, 2022 issue of his must-read Unleash Prosperity Hotline (it’s free and you can sign-up here) Biden’s go-to strategy is to blame “greedy” corporations.
Biden has been slamming oil companies and gas stations for raising prices and fueling inflation. In the video below Biden fumes: “My message is simple. To the companies running gas stations and setting those prices at the pump: Bring down the prices you’re charging at the pump to reflect the cost you pay for the product…It is going to save people a lot of money.”
In an article headlined “Richard Milhous Biden” Mr. Moore observes:
This rant against Seven-11 store owners only reinforces the scary reality that a year and a half into the worst inflation wave since the 1970s, this administration has no clue how to bring down prices. Biden now wants price controls on oil, gas stations, credit card companies, banks, health care, and pharmaceuticals and that’s just to start.
Back in the 1970s, President Richard Nixon tried to address the inflation issue as his re-election bid neared by imposing economy-wide wage and price controls. He even made it illegal for many months for companies to raise prices. (We almost hesitate to bring this up for fear the Biden people might get ideas!) the Soviet-style strategy flopped and inflation only got worse when the price controls were lifted. In the years that followed inflation ramped up from 6 to 8 to 11%.
Ironically, Biden won his seat in the U.S. Senate during a huge anti-inflation Democrat wave election just about a year after Nixon imposed those controls. He didn’t learn the lesson from back then. Now he touts the same set of policies which he says will “lower the cost of healthcare, prescription drugs, and energy.”
This story will not have a happy ending, concluded Steve Moore.
“Not having a happy ending” is a hallmark of Democrat economic policy. From denying inflation and claiming it was “temporary,” to passing the buck with “Putin’s Price Hike,” the White House and congressional Democrats are out of touch with the challenges Americans face – and the causes of those challenges.
The typical family now has to spend $450 more per month to buy the same goods and services they did a year ago, prompting more Americans to rely on loans and credit cards to make ends meet, even as the Federal Reserve makes borrowing more expensive.
As Bidenflation continues to hammer American families with rising energy prices, millions of U.S. households are struggling to make ends meet, reported by CBS News.
Nearly 20 percent of American households have made a late payment on their energy bills, or missed paying altogether, according to a recent report from Bank of America.
The Biden Administration’s disastrous energy policies only result in skyrocketing energy costs, failing energy grids, and an increase in energy poverty.
Here are some KEY BIDENFLATION TAKEAWAYS on Bidenflation posted to the website of the House Ways and Means Committee Republicans:
American families are struggling to heat their homes as President Biden kneecaps the economy.
Soaring energy prices are hurting lower- and middle-income families the most, with those making $50,000 or less suffering most. These working families have to choose between heating their homes and buying essentials.
“Geographically, residents of Dallas and Houston are seeing some of the highest utility bill hikes this summer — up 23 percent when compared to the same period last year.”
“The average household will pay about 17 percent more this winter to heat their property, a 10-year high of about $1,200 per home, the National Energy Assistance Directors Association estimated earlier this month.”
GOP Rep. Kevin Brady: Prices are Sky High for Food, Shelter, and Even Health Insurance — Is that Worth Biden Celebrating?
Democrats fueled inflation that’s crushing families and workers and will make it worse.
Under President Biden, workers’ wages have dropped over four percent, prompting a majority of Americans to take up bargain-hunting.
More than half of all Americans report spending up to $500 more per month on groceries.
For a majority of low-income households, rising prices have become a source of “major financial stress” as inflation has wiped out 26 million low-income households’ savings since President Biden took office.
Democrats’ so-called “Inflation Reduction Act” imposes higher energy prices on Americans.
The bill’s $25 billion superfund and methane taxes on American energy disproportionately harm middle- and lower-income households through higher prices at the pump and bigger utility bills.
Taxes on crude and imported petroleum products will be passed on to American consumers in the form of utilities, at gas stations, and higher prices for the goods they buy.
As Americans for Tax Reform says: “The legislation would impose a regressive tax on oil and gas development based upon emission levels of methane during production, leading to higher energy bills for consumers and higher costs of everyday products.”
The American Gas Association also makes clear: “These outcomes are inconsistent with President Biden’s commitment to pay for reconciliation without imposing new taxes on lower-income Americans.”
Read the study: Biden-Flation Is Outpacing Wages for Domestic Workers
Real wages in the past year have fallen by about 4%, which is a huge pay cut to working folks. They're just trying to keep the lights on and get by, and it is government, not the oil companies or your local convenience store, gas station or pharmacy owner, that is the big problem.
Control of Congress
federal budget deficit
Chair Jerome Powell