July 14, 2021 | Research

Biden Inflation Is Here

DESPITE INFLATION, BIDEN WANTS TRILLIONS IN NEW SPENDING

On Biden’s watch, many middle-class Americans are now facing a new hidden tax: rising prices.
Biden already dumped $1.9 trillion into the economy, and is currently pressuring Congress to pass trillions more in spending.
- This comes on top of the lackluster June jobs report showing Biden is squandering the recovery he was given.
- On top of rising prices, businesses are struggling to hire employees as Biden’s policies pay American workers more to stay at home.
Economists warn trillions in new spending is a recipe for even more inflation and higher prices.
As American workers and businesses struggle to recover, and as families face rising prices, now is not the time for Biden’s $3 trillion tax hike and $6 trillion government spending spree.

PRICES ARE RISING AT HISTORIC LEVELS

Consumer prices jumped 5.4 percent annually in June, surpassing expectations by rising at the highest rate since 2008.
- The price of used cars and trucks increased 45.2 percent annually, the largest change ever reported going back to when data was first published in 1953.
- The hike in consumer prices means wages are declining for workers when accounting for inflation.
- Real average hourly earnings decreased by 1.7 percent and real average weekly earnings fell by 1.4 percent over the past year.
Core consumer prices rose 4.5 percent in June, the largest increase in nearly 30 years.
- In the past three months, core consumer prices increased at a more than 8 percent annualized rate, the fastest since the early 1980s.
Producer prices rose 7.3 percent in June, the third month in a row the index reached a new record high and “another sign that inflation is moving at a faster pace than markets had anticipated.”
Economists forecast that if nothing changes, rising prices are “here to stay for years.”

AMERICANS ARE FEELING THE PINCH IN THEIR POCKETBOOKS

With prices rising on numerous consumer goods, “virtually every aspect of American life is getting pricier.”
Eating out is getting more expensive, with restaurant prices 4.1 percent higher than last year.
Home prices increased about 15 percent from last year and rents have soared to triple their normal rate in the first six months of 2021.
With prices above $3 dollars per gallon, gas prices haven’t been this high since 2014, the last time Biden was in office.
Airfares are going up at the rate of about 10 percent a week, with some coach fares in the U.S. more expensive than business class fares going to Europe.

RISING COSTS ARE SQUEEZING BUSINESSES

Businesses are being forced to raise prices due to increased costs for raw materials, components, and shipping along with increased demand from consumers.
- 48 percent of small businesses have been forced to raise prices -- the highest percentage in 40 years.
While inflation impacts all companies, small businesses have been hit especially hard.
- Barry Levine, owner of Sperry West of California: “I would like to say, we're going to hold our prices forever, but that's not going to happen.”
- Carolyn Miller, sales manager at Classic Buildings of Missouri: “Our prices have skyrocketed . . . Obviously, we can’t stay in business without passing that price onto customers.”
- Lou Mascherino, owner of the Veterans Cafe and Grille of South Carolina: “There’s no way I can afford to pay $85 a case without raising my prices out the roof.”
- Tyler Port, general manager of DR McKay’s of Illinois: “We'd run wing specials two or three times a week . . . We can't do that anymore because of the rising prices. Wings have doubled in price in less than a month."