in purchasing power compared to last year.
Part of the article: "On Wednesday, the Penn Wharton Budget Model ? a nonpartisan public policy research initiative at the University of Pennsylvania?s Wharton School ? found that inflation trends require the typical American household to spend around $3,500 more in 2021 to achieve the same level of consumption as in previous years."
You would think people would know who to thank for that.
You can take a simplistic view and blame it on one man, but that is not how the facts add up.
Pandemic, "free" government money, and citizens themselves. Biden may be a part of it but don't forget Congress and the Federal Reserve.
Trump sent out stimulus checks too, so he is a part of it.
It was not caused by Biden alone but coming out of the shortages caused by production shut down because of the virus but Biden made it far worse by limiting fuel supply and excessive spending. If he gets his build back better plan you will long for the days of nine percent inflation.
Glad to see you recognize it was not one man. Some of that fuel shortage was also from a sudden surge in travel too.
Seems like the BBB is pretty much dead. Some was good, much was not.
Do not read me wrong, most of the inflation was caused by Biden.
Only if you blame the president for every bad thing that happened in his administration. Unfortunately that has been the policy as long as I have been aware of politics. That is particularly true of economics. It was Eisenhower's recession in the 50s, Ford's inflation, Carter's malaise and rocketing interest rates. Obama owned the housing crash and Biden owns this one. Nobody looks at the seeds that were germinating when they took office.
I was planning on googling about this but I've been very busy. It has seemed to me that inflation was inevitable because of many years of deficit spending, under every administration iirc except n years under Clinton.
And I've wondered what held off the inevitable. And I've felt it was getting closer and closer.
I haven't had an economics course since high school but then we were told that deficit spending was inflationary because one of two things happen, A) the government prints more money at a faster rate than the value of all goods and services inceases. B) The government borrows money by selling savings bonds. China wasn't a factor when I was in igh school nor was any other country a substantial investor in the US Treasure, but since then I've heard that borrowing money from china is like selilng them savings bonds and that's just like selling them to US residents, and that's just as inflationary as printing more money.
So AFAIK this inflation was inevitable, and anything that could have been done to avoid it would have sacrificed some other goal just as or more important.
Clinton put almost $2T on the debt. That seemed like a lot at the time but Ronny was just over $2T. (both over 8 years) Now we are on track to doing $2.9T this year alone.
I just hope we are not wheeling dollars in wheelbarrows to the grocery store before I die.
I blame Biden for the bad things that happened because of his administration. Had he done nothing new when he became president I suspect inflation would have been half as bad.
Which is completely idiotic, but then Frank has a tenuous grasp of reality.
The lag time alone for any economic crisis is far longer than the
11 months since the President took office.The start of the current economic crunch began with the ill-advised tariffs applied by the prior adminstration and was exacerbated by the poor response by the prior administration to the COVID crisis.
Try this:
Usually the crash attributed to any given president had it roots in previous administrations. I pointed that out. Politicians have a mentality that if something happens after they leave office, all the bad shit they did for votes will be forgotten. The bankruptcy of local governments because of pension and benefit give always is an excellent example. Unfortunately the federal government does the same thing. The GOP cuts taxes and the Democrats spend money we don't have. Neither seem to understand a profit and loss statement and demographic shifts are lost on both of them.
If Rachel doesn't report it, it didn't happen.
Crashes firefox.
Tries a different browser.
So, a limited data set (self-selected, since it's based on survey responses) and the rather iffy use of "average" instead of "median" which weighs the figure higher than it should be.
Main takeaway is that a large component of the increase in CPI is energy (not surprising), which has increased 33.3% in the period in question (2020 to 2021).
I suspect that the cost per median household (rather than average) would be significantly less than the headline '$3,500'.
Energy prices pretty much drive price increases across the board from resource extraction to finished product.
Rachel Morgan?
I don't watch TV news, of any flavor, variety or political lean. Ever.
Demographic shifts weren't lost on the Texas GOP this year. After learning that 95% of the Texas population increase was attributable to Latinos, the GOP immediately got to work and eliminated the two existing majority-Latino voting precincts. The Latino population is now diluted among the majority-White precincts, meaning a significant *increase* in their population has resulted in a significant *decrease* in their voting power. Good job, GOP. (/sarcasm)
The current round of "inflation" is, like most serious inflation (and recession/depression) caused by a lack of competitive forces enabled by too much wealth and power in the hands of too few. With no effective competition companies can raise prices even when they are making record profits. 2 major paper companies control the paper products market. One major ag science group (monsanto) controls the price of sead grains. Look at the meap packing companies - - - and the wireless spectrum - and internet/cable TV.
Only one manufacturer of commercial aircraft - Boing - and how many REAL airlines?
You posed the question if the number was right and then explained why it might be. Energy prices affect everything. I agree you can't issue a blanket statement like "$X" is the number but we know it is a fairly large number if you do the shopping in your family. Grocery prices alone bump my cost of living up $50 a week or more. Everything is higher. Meat may be the worst but that makes the bark eaters happy.
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