The Biden-Harris Administration are taking bows because inflation is down. But what is inflation and is it really down?
Inflation is the rate at which the general level of prices for goods and services rises over time, resulting in a decrease in the purchasing power of money. When inflation occurs, each dollar buys fewer goods and services than it did before. The Federal Government measures Inflation by changes in the Consumer Price Index (CPI). With inflation, the same paycheck buys less. The cost of living goes up.
Inflation has increased significantly since 2020. The COVID-19 pandemic, supply chain disruptions, and economic stimulus measures all contributed to higher inflation rates. Here is a breakdown of inflation in the United States from 2020 to 2023:
2020: Inflation was relatively low, with the Consumer Price Index (CPI) increasing by about 1.4% year-overyear. The pandemic caused a drop in demand, which helped keep prices down.
2021: Inflation began to rise sharply, with the CPI increasing by about 7% year-over-year by December 2021. This was driven by supply chain issues, labor shortages, and increased demand as the economy reopened.
2022: Inflation peaked in 2022, with the CPI rising by about 9.1% year-over-year in June, the highest rate in over 40 years. Energy prices, housing costs, and food prices were major contributors to this spike.
2023: Inflation started to moderate but remained elevated. By mid-2023, the year-over-year CPI increase was around 3-4%, depending on the month. While down from the 2022 peak, this was still higher than the pre-pandemic average.
Overall, inflation has increased by approximately 15-20% from 2020 to 2023, depending on the specific goods and services measured. This has had a significant impact on purchasing power and the cost of living.
Saying “inflation is going down” is very misleading. What is really happening is that the rate of increases in prices has slowed but PRICES ARE STILL GOING UP AT THE RATE OF AT LEAST 2.9% per year.
The above listed inflation causes are unduly kind to the Federal Government in general and to the Biden-Harris administration in particular. Consider the following: The Biden-Harris Administration has handicapped the domestic energy industry which has not been able to keep up with growing demand. Less energy supply means higher prices and importing more oil compounds that.
The Biden-Harris administration has poured billions of your tax dollars into alternative energy programs that have not met the increasing demand for electricity.
The Biden-Harris administration is now paying for Obama Care and free medical care for a larger portion of our population.
The Biden-Harris administration has not addressed the rising cost of Social Security and Medicare.
The Biden-Harris Administration has ushered over 3 million illegal immigrants across the southern border at an enormous increase in spending by Federal, State, and Local Governments. Increased Government spending is inflationary.
The Biden-Harris administration has a plan to deal with this; increase taxes again. Our left-leaning, Democratic leadership has reached a new threshold of Socialist decline; 49% of our population pay no (ZERO) Federal Taxes. The rest of us are paying more to keep the dream alive.
Gerry Giesler Greensboro