On Tuesday, the Labor Department reported prices paid to U.S. producers rose at an annual rate of 10% in February on higher costs of goods, further highlighting record-setting inflation.
It was the biggest increase in the producer price index since 2009, with energy costs accounting for two-thirds of the rise. Under the Biden administration, the Consumer Price Index surged by 7.5% compared to last year, exceeding economists’ expectations and marking the largest annual increase in 40 years.
President Biden has laughably dubbed these higher costs “the Putin price hikes.” Last month, his administration blamed COVID-19 for surging prices. Before that, it was “corporate greed.” Last summer, inflation was a good thing, White House press secretary Jen Psaki declared because it meant Americans were buying more goods. In spring of 2021, the Biden administration promised us inflation was merely “transitory,” and before that, denied rising costs were happening at all.
In March of 2021, Larry Summers, a top economic adviser to former President Barack Obama, blasted Mr. Biden’s $1.9 trillion coronavirus stimulus package as the “least responsible” economic policy in 40 years. Mr. Summers warned there was chance inflation would accelerate, with the U.S. possibly facing stagflation, or economic stagnation.
His concerns were ignored — and are still being ignored — by a White House and a Democratic Party who insist government spending does not lead to higher prices at the grocery store or at the gas pump. Mr. Biden continues to promote his Build Back Better agenda, lying that his nearly $2 trillion spending spree will “lower inflationary pressures on the economy.” On Friday, House Speaker Nancy Pelosi, maintained the charade, by alleging federal spending is “reducing the national debt” and is “not inflationary.”
Still, the American people know better. According to a recent ABC News/Ipsos poll, 70% of Americans disapprove of Mr. Biden’s handling of inflation and surging gas prices.
And why wouldn’t they? Last month’s jobs report showed American workers are taking a pay cut due to inflation, with real wages falling. Rising prices are costing the average American family $385 per month, with the western states being hit harder at $500 per month, according to a new estimate from Congress’ Joint Committee on Taxation. Mr. Biden’s economy is leaving behind the very groups he promised to champion — 35% of Black, Hispanic and Asian American voters report facing major financial strain due to higher costs.
Inflation is a tax that disproportionally hits low-income families the hardest. Sixty-six percent of households making under $40,000 have reported financial hardship due to inflation, with many having to choose between filling their car up with gas or buying food at the grocery store.
Rather than being sympathetic with their plight, Mr. Biden gets angry with them, as he did at the House Democratic Caucus Issues Conference in Philadelphia last week, saying he’s “sick” of the criticism coming from stupid Americans, who don’t understand what he’s done for them.
“We have to talk about it [the government stimulus Biden passed] because the American people think the reason for inflation is the government spending more money — simply not true,” he yelled at the audience.
The gaslighting needs to stop.
“This is Biden’s inflation and he needs to own it,” former Obama economic adviser Steven Rattner tweeted March 10 in response to Mr. Biden blaming higher prices on Russian sanctions.
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