Skip to Content

Blog

Inflation, inflation, inflation!

Washington, D.C., November 10, 2021
The news is not good this Wednesday morning. Inflation has now surged to a 30 year high, according to data just released by the Labor Department.

For the year ending on October 31st, wholesale prices are up 8.6%, while consumer prices are up 6.2%. (For simplicity, think of “consumer prices” as what you pay the store, and “wholesale prices” as what that store has paid the manufacturer for the goods it turns around and sells you.) A few points on all this:

** First, weren’t we told this would be “transitory”?
Remember how the Biden Administration and highbrow academics assured us that this inflation was temporary? Anyone still standing by those predictions should be taken with a grain of salt. Even CNN conceded earlier this morning that “There’s no end in sight for higher prices.”

** Second, this inflation is hurting the lower- and middle-income Americans the most!!
Inflation is a regressive tax, of sorts. When the cost of living goes up due to inflation, it is significantly harder for those who earn less to absorb the increases. (Much more so than higher income earners.) This cannot be solved by mandating higher wages, as many liberals argue, since it could lead to a spiraling cycle of inflation.

** And third, you don’t battle a forest fire with lighter fluid.
The historic levels of government spending that Democrats are trying to ram through Congress will absolutely make this problem worse, not better. You cannot recklessly plonk trillions upon trillions of additional federal dollars into our economy – given our current situation – without it creating even more inflationary pressure and hurting people!