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'Bidenflation' Has Been a Hidden Tax on Americans.
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The BLS announced yesterday that inflation increased in July at 3.2 percent from the same month last year. Core inflation in services, which comprises most of the total consumption basket for households, remains elevated at 4.7 percent.
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While the rate of inflation growth has slowed from a peak of 9.2 percent last June, inflation is still above the Federal Reserve target rate of inflation of 2 percent and continues to inflict economic harm on American households.
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Since the Biden administration took office, prices have increased over 16.9 percent, and the annual cost of inflation has been estimated to harm American households upwards of $9,000.
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Often termed a “hidden tax” on income, inflation has eroded purchasing power for American households and amounted to an inflation-adjusted pay cut.
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Unless wages increased above the 16 percent rise in inflation, Americans have had an effective pay cut, reflected in part by the quarterly contraction in real hourly compensation since mid-2021.
- Overall, the fact remains that years of inflation under Biden’s deficit-spending policies has forced Americans to spend more on living expenses, leaving less money to cover rising interest rates and mounting financial risks and economic uncertainty.
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The Cost of Biden's Excessive Regulations Worsen Impact of Inflation.
- Exacerbating the inflationary concerns is an enormous increase in regulatory costs Biden continues to put on the economy.
- Biden has imposed $617 billion in regulatory costs on American producers in his first two years in office and exceeded the $535 billion costs of regulatory rulemaking during the first two years of the Obama administration. By contrast, in the first two years of the Trump administration, deregulation across federal agencies save Americans $324 billion.
- The Biden-imposed regulatory costs translate to $9,600 per American household, and if rulemaking under Biden accelerates at the same pace, the added regulations will cost $60,000 per American household.
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- Excessively high levels of regulations lower economic productivity, raising the cost of production which, when passed to consumers in higher prices, amounts to another hidden tax incurred on American households.
- Adding insult to injury, the high cost of excessive regulations under Biden seizes more power over the economy through executive actions and has accelerated rulemaking into the hands of an unelected federal bureaucracy.
- Overall, “Bidenomics,” the Biden’s economic agenda of inflationary deficit-spending policies, higher taxes, excessive regulations, and “green” energy corporate welfare, is not a win for Americans.
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