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Economy

Consumer Price Index Sees Highest Increases Since 2008, 1982

What says the Biden administration? It’s standard go-to practice of ‘deny, deny, deny.’

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CPI

As if the past year wasn’t bad enough, consumer prices have seen the largest yearly jump since 2008. The Consumer Price Index (CPI) “which tracks the cost of a variety of consumer goods as well as housing and energy prices, has risen 4.2 percent from a year ago” reports National Review.

Not only did it rise significantly, but even more depressing, it is considerably higher than the estimated 3.6 percent. Therefore, “it is the largest yearly increase since September 2008.” We all remember what happened in 2008.

There’s yet another level of disappointment. National Review writes, “even controlling for food and energy prices, the CPI was up three percent, higher than the estimated 2.3 percent.” Additionally, “the 0.9 percent CPI increase from March, again controlling for food and energy prices, is the highest since April 1982.”

Not depressed yet? Wait, there’s more. “This data comports with Americans’ everyday experiences” such as, for example, “on Tuesday, the average price of a gallon of gas rose to $2.99, the highest figure since November 2014.”

What says the Biden administration? It’s standard go-to practice of ‘deny, deny, deny.’ The Biden administration contends the risk of inflation is nearly nonexistent. In an interview with NBC’s Meet the Press May 2nd, Treasury Secretary Janet Yellen said firmly, “I don’t believe that inflation will be an issue.”

Just a few days later Yellen defended her claims and added in a White House briefing “I really doubt that we’re going to see an inflationary cycle.” White House Press Secretary Jen Psaki gave one of her standard unhelpful empty comments saying the White House takes “the possibility of inflation quite seriously.” Prove it.

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3 Comments

3 Comments

  1. WillyB

    May 13, 2021 at 9:41 am

    This should not be news to anyone. Economics 101. $6 Trillion in new money added to the economy with nothing in return–no goods or services provided. All that does is put more money chasing the same goods. There is no was that won’t cause inflation. Meanwhile, the Fed keeps interest artificially low, in order to keep the stock market up–essentially the stock market is also experiencing inflation.

    Now the Fed is stuck. Interest rates at rock bottom. Raise rates to fight inflation and the market suffers. Remember the 1970’s. Ten years and the CPI was up 100% and the DJIA up 3.5%. It’s coming, and the Democrats knew it would happen…it was Democrat spending in the 1960’s that caused the inflation of the 1970’s!

  2. Frank

    May 13, 2021 at 10:24 am

    It’s unbelievable that our geriatric president can’t understand economics 101. An embarrassment to the world.

    • Barry

      May 14, 2021 at 12:41 am

      Just get the keystone going again. There are MANY businesses and jobs related to the pipeline. That would be a start.

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Economy

Inflation Spiked 7% Past Year, Highest Since 1982

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With a 7% spike from last year, inflation has increased at its fastest pace in 40 years. On Wednesday, the labor department reported its measure of inflation “that excludes volatile food and gas prices jumped 5.5% in December, the fastest such increase since 1991. Inflation rose 0.5% overall from November, down from 0.8% the previous month” reports the Associated Press.

National Review reports “the consumer price index, a major inflation gauge, for all items surged 0.5 percent for the month and 7.0 percent for the last twelve months ending in December, representing the largest annual spike since June 1982, when inflation hit 7.1 percent.”

Housing prices and used cars and trucks contributed the most weight to the all items surge. But prices for cars, gas, food and furniture all rose sharply as part of a rapid recovery from the pandemic recession, “that was fueled by vast infusions of government aid and emergency intervention by the Fed, which slashed interest rates.”

Federal Reserve Chair Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs Tuesday, warning monetary policy is constrained in its power to curb inflation by the current “era of persistently low interest rates.” Ordinarily, the Fed can hike rates to slow down an overheating economy.

“Recovering from the pandemic, the economy has rebounded well but a bit too fast for many moving parts to catch up to, Powell noted, as supply chains still struggle to meet demand across consumer sectors, resulting in inventory shortages on store shelves and prolonged shipping delays” reports National Review.

“The economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation. We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation,” said Powell.

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Economy

Federal Debt Equals Roughly $287,859 Per Income-Tax-Paying Household

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National Debt Clock
National Debt Clock

The Biden administration wants to increase any taxes they can get their grubby hands-on, and CNS News explains why: because they need it. In an analysis, CNS writes about how as Congress “worked in recent days to increase the legal limit on the federal debt, the Treasury kept that debt artificially frozen at approximately $28.9 trillion, where it stood at the beginning of this week.”

With the limit lifted, the federal debt will increase, “then keep steadily climbing, constantly increasing the burden on future taxpayers.” Here’s the analysis:

In 2018, according to the last complete annual report on individual income tax returns published by the Internal Revenue Service, there were 100,424,240 households in the United States that filed what the IRS calls a “taxable return.” “The taxable and nontaxable classification of a return for this report is determined by the presence of ‘total income tax,'” explained the IRS.

“‘Total income tax,'” it said, “was the sum of income tax after credits.”

In other words, the 100,424,240 households that filed a “taxable return” in 2018 actually paid income taxes to the federal government.

If you divide the $28,908,004,857,445 in debt that the federal government owed before the debt limit was liftedby the 100,424,240 American households that paid net income taxes in 2018, it works out to approximately $287,859 per income-tax-paying household.

In order to understand the magnitude of what this means, CNS compares numbers to 1989:

The year that President Ronald Reagan left office, there were 89,178,355 income-tax-paying households in the United States, according to the IRS. At the end of January that year, the federal debt was $2,697,957,000,000.

That means the federal debt then equaled approximately $30,253 per income-tax-paying household.

Even when the January 1989 federal debt of $30,253 per income-tax-paying household is adjusted into November 2021 dollars (using the Bureau of Labor Statistics inflation calculator), it equals only approximately $69,437.

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