It’s All A Matter Of Perspective

Inflation impacts every American. We see it mainly at the grocery store and the gas pump, but it also shows up in movie prices, concert prices, the cost of dining out, etc. In terms of the impact on food prices, Scott Johnson at Power Line Blog reports on one of the most amazing comments by the White House on the price of food.

The article reports:

White House Economic Council Director joined White House press secretary Karine Jean-Pierre for the July 26 press briefing last week. The White House has posted the transcript here. Talking up the strength of our economy by comparison with others, Deese (White House economic adviser Brian Deese) actually said this:

Well, look, I think that our — our economy is more resilient to the — to the types of challenges that we’ve faced. For example, you know, with respect to food, we’re a net exporter of agricultural commodities. And, obviously, the high prices are hitting Americans very hard, but they’re — that — in a way that is different from some places that are facing famine, for example.

So what I hear in that statement is that the Biden administration really doesn’t care that the high price of food is seriously impacting Americans, we should be glad we are not facing famine.

We can’t get the Biden administration’s hands off of any public policy power they have soon enough.

Life In America Is Getting More Expensive

On Friday, The Daily Caller posted an article about the impact of inflation on household budgets.

The article reports:

The Consumer Price Index (CPI) reached its highest rate in over 40 years in May, adding more strain on U.S. household budgets.

American families watched as consumer prices for necessities like groceries, oil and gas, and transportation rose 8.6% in the last year, according to the Friday U.S. Bureau of Labor Statistics (BLS) report.

The CPI, which measures the change in price for products paid for by U.S. consumers, increased a startling 1% in May after only rising 0.3% in April, the BLS report shows.

The skyrocketing rates affect all areas of American life, but shelter, gasoline, and food saw the highest price increases.

The article concludes:

Records show food prices rose 1.2% in May, an increase from the .9% rise in April. The food at home index climbed for the fifth consecutive month, increasing 1.4% in May. The price for American families to eat at home has risen 11.9% over the past 12 months, making it the largest 12-month increase since April 1979, reported BLS.

“All six major grocery store food group indexes increased over the [last 12-months], with five of the six rising more than 10 percent. The index for meats, poultry, fish, and eggs increased the most, rising 14.2 percent, with the index for eggs increasing 32.2 percent,” the BLS report stated.

Fruits and vegetables rose 8.2%, with other food at home rising 12.6%.

Transportation costs, like new and used cars, and airline fares, also rose. The price of new vehicles rose 1% in May and 12.6% over the past 12-month. The used car index increased 1.8% in May and 16.1% over the past year. Airline fares rose 12.6% in May alone, after increasing 18.6% in April, statistics show.

There are a lot of reasons for this increase in inflation. There is also a belief in some circles that it is by design–inflation makes the national debt easier to pay off. Unfortunately, if the Federal Reserve raises interest rates, the interest on the debt increases dramatically. Basically, excessive government spending is a major source of inflation. The dramatic increase in fuel prices has a trickle-down impact on inflation and is also contributing to the problem. Both of these things are correctable if we had an administration that wanted to correct them.