Get the Facts: Inflation and American Families
On Thursday, March 10, the Labor Department released February’s twelve-month consumer price index data. They reported consumer prices had increased 7.9% during the previous twelve months. We haven’t seen inflation that high since 1982 – forty years ago!!!
I’ve been warning about runaway inflation and possibly stagflation for a year now – ever since Democrats began discussing their 100% partisan $1.9 trillion “COVID relief” bill. They passed this with no Republican votes at a time when we still had more than $1 trillion unspent from the previous $4 trillion COVID relief passed in 2020.
What causes inflation is pretty simple to understand. Inflation is too many dollars chasing too few goods. When the federal government prints money to pay benefits to people helping them to sit on the sidelines and not re-enter the workforce, you’ve negatively impacted both parts of the inflation equation. You’ve created even more dollars and reduced the supply of goods available to buy.
On March 14th, BLS released another report on the change in prices that manufacturers have experienced over the last year – the Producer Price Index (PPI). Over the last 12 months, the PPI has increased 10.08%. Because this represents the increased cost of inputs going into manufactured goods, the PPI is generally a harbinger of future trends in the CPI. With the PPI showing a 10.08% increase, economists would expect the CPI to keep rising, not falling, in the future.
So you see, 7.9% inflation didn’t just happen – it was caused by Democrat policies and governance. Democrats, and their allies in the media, will deny this reality. In fact, they are actually saying the solution is even more deficit spending for benefits that will help keep workers on the sidelines. You can’t make this up.
President Biden also recently restated his claim that Democrats will not increase taxes on anyone making less than $400,000/year. But because inflation robs people of purchasing power, just like taxes do, inflation is the equivalent of a tax increase. Inflation is particularly hard on seniors living on a fixed income and people at the lower end of the economic spectrum – the very people Democrats claim to care so much about.
You could say inflation is the Democrat tax on the middle class that President Biden vowed not to increase.
So how could anyone expect Democrats to fix the problem they caused and are in a state of denial over? The obvious answer is, you can’t. That’s why today I am announcing a new ad highlighting the harm inflation is causing in our country. Watch the ad here.
We need to sweep Democrats from power in November, but it will take resources to do so. Democrats have already spent $46 million against me. Their allies in the media and Big Tech social media dutifully pile on. Any financial support you are willing to provide me to help counter their lies and and distortions will be greatly appreciated. Click here to contribute.