Although the Biden administration would like you to believe that “Bidenomics” is bringing prosperity to America, the facts say otherwise.
According to the recently released June Consumer Price Index Report, “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent in June on a seasonally adjusted basis, after increasing 0.1 percent in May.” In other words, inflation is getting worse, not better.
Among the categories that saw significant spikes were “shelter,” “food,” “energy,” “apparel,” and “transportation services.”
On an annualized basis, shelter is up 7.8 percent, food is up 5.7 percent, electricity is up 5.4 percent, apparel is up 3.1 percent, general services are up 6.2 percent, and transportation services are up 8.2 percent.
Making matters worse, Americans’ wages are failing to keep up with the persistent inflation.
During President Biden’s time in the Oval Office, consumer prices have risen a whopping 16 percent overall, including a 20 percent spike in food and a 36 percent uptick in energy. Incredibly, inflation has increased every single month since Biden entered the White House.
However, in an audacious attempt at gaslighting the American public, President Biden has launched a national tour promoting Bidenomics. In response to the latest CPI report, Biden took an undeserved victory lap, claiming, “Good jobs and lower costs: That’s Bidenomics in action.”
Biden added, “Today’s report brings new and encouraging evidence that inflation is falling while our economy remains strong. Our progress creating jobs while lowering costs for families is no accident, and I will continue to fight for lower costs for families every day.”
Predictably, the American people see through Biden’s tall tales when it comes to the state of the economy. Multiple polls show that Americans believe the U.S. economy is on the rocks.
Moreover, they almost universally blame Biden and congressional Democrats for the sorry state of affairs.
The American people understand that Biden’s $4.8 trillion in new deficit spending is the principal driver of the worst inflation the country has experienced in more than four decades.
However, there is more to the story.
Biden’s reckless regulations, especially his heavy-handed approach to the fossil-fuel sector, is adding inflationary injury to insult. So, too, are his anti-work programs.
The Biden administration constantly touts that the unemployment rate is near historic lows. Yet, what he fails to mention is that the labor participation rate remains well below recent levels.
As of today, there are more than 10.1 million unfilled jobs in the U.S. economy. As most Americans can likely relate to, this is a pervasive problem that is causing all sorts of economic and social consequences.
In my experience, almost everywhere I go, from the grocery store to local restaurants, “Help Wanted” signs litter the landscape. But because Biden’s policies have made it easier for Americans to live off the dole, businesses are having to entice potential workers with higher wages. This is what economists typically refer to as demand-pull inflation, which adds to inflationary pressures.
Ordinarily, rising wages are a good thing. However, as previously stated, wages are still not keeping up with rapidly rising prices, leaving workers worse off.
The good news is that the rapid decline in Americans’ standard of living due to a stagnant economy, high inflation, and a lousy employment market can be fixed with commonsense measures including a reduced tax burden, less government spending, and a rollback of the onerous regulations that are inhibiting productivity.
Chris Talgo (ctalgo@heartland.org) is editorial director at The Heartland Institute.
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