Tag Archives: price increase

The Impact of the National Debt

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Author: R. Alan Harrop, Ph.D

We, the American taxpayers, need to be aware of the soaring national debt; primarily because we will ultimately suffer the consequences of this out-of-control spending. Let’s take a look at the facts. I strongly suggest that you sit down as you read this.

Much of the following data was obtained from the website www.us.debtclock.org as of the end of August 2024. The total debt is currently 35.2 trillion dollars. This debt, by far the highest of any country in history, is increasing at the rate of 1 trillion dollars every three months. This amounts to $268,000 per taxpayer. The debt to the Gross Domestic Product (GDP) ratio is 122% as compared to 35% in 1980. This is comparable to an individual having a debt that is 122% higher than their total assets and income. The interest alone on the national debt now amounts to 918 billion dollars per year, which is more than the entire military defense budget. This is clearly unsustainable.

The impact of federal spending on inflation is equally alarming. Compared to the year 2000, the price of essentials is truly shocking. For example, the average price of a new home is now $406,000 as compared to $166,000 in the year 2000. New cars now average $49,000 as compared to $22,000; annual healthcare now averages $15,000 as compared to $5,000; college tuition now averages $27,000 per year compared $11,000. Contrast these dramatic increases to the increase in median annual income that is now $39,000 compared to $32,000 in the year 2000. Clearly, the standard of living of the average American, especially the young, has diminished significantly, especially when you add the $268,000 we all owe on the national debt!

As we face the upcoming election, we need to evaluate the impact the Democrat and Republican platforms will have on the national debt and inflation. The Democrat platform, as far as we can tell, includes price controls, $25,000 gifts to first time home buyers, increases in corporate tax rates, allowing the Trump tax cuts to expire, a tax on unrealized capital gains, transferring student loan debt to others, and a wealth tax. History shows that none of these proposals will reduce the national debt or inflation–they will only increase government spending and reduce the incentive of the average person or corporation to invest.  Couple this with the money being spent to support illegal aliens, and the problem only worsens. For example, price controls lead to shortages in supplies and result in price increases. The Republican platform includes efforts to reduce the cost of energy by eliminating costly green energy programs and expanding the use of fossil fuels and nuclear power, reducing excessive government regulations, incentives to increase investments, and returning manufacturing to this country. Decreasing the cost of energy is essential to reducing inflation. The national debt crisis can only be solved by reducing the size of the federal government (e.g. abolishing the federal Department of Education and cutting the budgets of all federal agencies) and growing the economy by encouraging investment.

We have a very clear choice in the upcoming election. The fate of the economic survival of this country is on the ballot. Time to face reality.

The Impact Of Bidenomics

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On June 18th, Just the News posted an article about the impact of Bidenomics. Essentially Bidenomics is excessive spending creating inflation and rising federal deficits combined with interest rates rising in an attempt to curb inflation without dealing with the spending.

The article reports:

More companies are declaring bankruptcy and shutting down operations, citing inflation and high costs. Inflation and the economy remains a top issue among all voters, according to a recent The Center Square Voters’ Voice Poll.

Retailers are closing nearly 3,200 stores this year, according to a recent analysis from CoreSight Research. The closures are a 24% increase from 2023.

U.S. drug stores and pharmacy closures led to 8 million square feet of shuttered retail space this year, the research company said. It also notes that retailers are losing inventory and customers due to retail theft. “Retail shrink” is closely connected to “organized retail crime,” it notes.

Out of the 3,200 being closed, the majority are being closed by roughly 30 retailers, with Family Dollar closing the most of over 600, according to the data, CBS News reported.

The article concludes:

One key indicator of economic health is consumer spending, and while it hasn’t yet slowed, warning signs are there because it’s largely being financed by debt, economists have explained. And consumers are also struggling to pay it off, they add. Earlier this year, economist David Rosenberg of Rosenberg Research warned that as total credit card debt reached a new all-time high of $1.13 trillion, credit card and auto loan delinquencies were also up. “As far as consumer credit is concerned, the default cycle isn’t merely looming, it’s arrived,” he wrote in an economic report.

According to a recent The Center Square Voters’ Voice Poll, conducted in conjunction with Noble Predictive Insights, inflation/price increases (45%) and the economy/jobs (24%) are top concerns among voters.

“Inflation is a high-ranking issue among Democrats and Republicans and True Independents,” David Byler of Noble Predictive Insights told The Center Square. “Every political group thinks this matters.”

The rise in retail theft is also a factor in store closings. How much does it cost to put candy behind plastic so that it cannot be stolen? How many extra man hours are needed to help customers access products that are now locked away? These are also things that lead to higher prices and continuing inflation. Curtailing government spending and prosecuting retail theft would be a good first step in lowering prices for consumers.

Taking Advantage

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On Friday, The Gateway Pundit posted the following headline:

Pfizer Plans 400% Price Increase for mRNA COVID Jab After CDC Panels Recommend to Include COVID Shots for Children and Adolescents Annual Immunization Schedule

The article reports:

Pfizer announced during an investor call that the company is considering charging between $110 and $130 per dosage for the private market for the COVID shot Comirnaty as government contracts come to an end.

The call was conducted on Thursday to review data on RSV and provide a commercial update on the company’s COVID vaccine. The investor call was uploaded on Thursday at 3:31 PM, hours after CDC panels voted to add the COVID vaccine to the annual immunization schedule for children and adolescents.

The new pricing will go into effect in 2023, most likely during the first quarter.

The article concludes:

The price is not out of line with other vaccines that are provided to adults. It is more than what CVS, for example, charges for a flu shot ($50 or $95), but is less than many other vaccines including Pneumovax 23 ($141), hepatitis ($145), meningitis ($179), shingles ($205) and HPV ($261).

Moderna did not respond immediately to a question about how much it plans to charge for its COVID-19 vaccine Spikevax.

In justifying the price, Pfizer mentioned its “50/50 gross profit split” with BioNTech and the reinvestment cost as the company continues to beef up manufacturing and develop the vaccine as the virus evolves.

I am not convinced that the risk of the vaccine for children outweighs the risk of getting COVID-19. This is an experimental vaccine, and I question the wisdom of making it mandatory. Parents and their doctors should have the right to decide whether or not to give their children this vaccine. There is no evidence that the vaccine prevents the disease or that it lessens the severity of the disease. The vaccine has only been approved for emergency use, so how does the CDC have the authority to include it in children’s vaccine schedules? I am sure we will  hear more about this. Meanwhile, think carefully before you give your child the vaccine. There is a lot of evidence that it may do more harm than good.