WASHINGTON, D.C. – With the most recent inflation report showing prices rising faster than paychecks, families are falling behind–and with Democrats’ spending, press reports and experts are noting there’s no end in sight.
The Wall Street Journal:
“The meaning of ‘transitory’ is getting longer all the time…. two months in a row, after a 5% annual increase in May. When does transitory, in the Federal Reserve’s inflation lingo, become persistent?
“…The smaller increase [in June] was mostly due to used car prices stabilizing somewhat after months of astronomical growth. Inflation rose anyway.
“… Labor costs are rising as businesses have to raise wages to attract workers who can make more unemployed. The result: Higher prices.”
“Rising prices on everything from groceries to gasoline have eaten away the wage gains workers have seen since the start of the year, leaving most Americans earning less than they were before the pandemic began and derailing the White House’s argument that paychecks have grown under President Joe Biden’s tenure.”
CNN:
“But at the same time, prices are soaring. Gas costs more. Food is more expensive. Car prices are at record levels.”
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“Americans are noticing, raising concerns about the higher prices for homes, cars and household goods, such as appliances, according to the University of Michigan Survey of Consumers released in late July.”
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“President Joe Biden and the Federal Reserve are arguing that it won’t be a long-term issue, while some experts worry that the price increases may be more entrenched.”
“About three-quarters of those with income under $50,000 say both grocery and gas prices are causing them financial hardship — and just over half of those at the $100,000 or more income level say the same is true for them.”
Former Obama-Biden Economic Adviser Jason Furman:
“[R]ight now, the price growth is winning the race.”
Former Obama-Biden Economic Adviser and Clinton Treasury Secretary Larry Summers:
“Inflation is here… epic levels of labor shortage as reported by employers…. We’re going to find ourselves with a new normal for inflation above 3 percent…”
“[Paychecks] have been lagging and the price increases have exceeded the wage increases, which is what always happens at the beginning of a wage-price spiral.”
Ways and Means Republicans have been sounding the alarm on rising inflation for months.
- In May, we noted Americans’ widespread concern about 1970s-style inflation.
- In June, we noted the country was bracing for a long, hot summer of rising costs.
- In July, prices shot up 3.5 percent — a year over year spike in a key inflation indicator not seen in three decades.
- In August, we warned that Democrats’ $3.5 trillion budget will only continue to raise costs on already cash-strapped middle-class families.