Inflation Is a Tax On Us All

Pinned on my office wall is a Zimbabwe $10,000,000,000,000 note. (That’s 10 trillion for those of you tired of counting zeroes). The currency is real, although Zimbabwe’s default currency is now the U.S. dollar. The central bank of Zimbabwe issued these $10T notes during the last days of hyperinflation in 2009, and they barely paid for a loaf of bread.

Ironically, you can now purchase one of these bills for about $27 U.S. dollars because they serve as collectors’ items or, more importantly, as a physical representation of the evils of inflation. Every economics professor in America should own one to show to their students on the first day of Econ 101.

Milton Friedman explained that inflation is always “a monetary phenomenon in the sense that it is and can be produced only by more rapid increase in the quantity of money than in output.”

Inflation hits everyone, but especially the middle class and those on fixed incomes. Inflation is a threat to the middle class because price increases reduce purchasing power so that the things that the middle class could previously afford are now out of reach. This pushes the lower rungs of the middle class out of the picture.

The disproportionate impact of inflation on the middle class relative to the wealthy may seem counterintuitive because the inflation rate — projected now at over 6% — is the same for everyone. But while all suffer the same rate of inflation, those with lower incomes tend to have lesser means of adapting to the increases in consumer prices. The suggestion from Biden’s White House chief of staff Ron Klain that inflation is a “high-class” problem is insulting.

Click here to read the full article at the Whittier Daily News

Kamala Harris Struggles Through Question On Inflation During CBS Interview

Vice President Kamala Harris struggled to give a coherent answer when asked about the economy and inflation during a Sunday interview on CBS.

Harris appeared on “Face the Nation” when host Margaret Brennan asked her on the issues of inflation going into the “third year” of a pandemic.

The question referred to a previous statement pushed by White House press secretary Jen Psaki that insisted inflation was only “transitory” and should go down within the next year.

Since then economists have admitted inflation has only gotten worse as the year ends with many predicting the increased spending proposals from President Biden could make the problem worse. 

Harris did not provide a clear answer to the question of combating inflation. She appeared to stumble on describing the process before pivoting to support for Biden’s Build Back Better plan, which has been delayed because Sen. Joe Manchin, D-W.Va., announced his opposition to the legislation. 

“We have to address the fact that we have got to deal with the fact that folks are paying for gas, paying for groceries, and are — need solutions to it. So let’s talk about that,” Harris said. “Short-term solution includes what we need to do around the supply chain, right? So, we went to the ports of Los Angeles, Long Beach, Savannah, Georgia, and said, ‘hey, guys, no more five days a week, eight hours a day; 24/7, let’s move the products because people need their product – they need what they need.’ We’re dealing with it in terms of the long term. And that’s about what we need to do to pass Build Back Better. It strengthens our economy.”

Click here to read the full article at FoxNews

President Biden’s Job Approval Sinking On Inflation, Crime and COVID: POLL

President Joe Biden is facing significant skepticism from the American public, with his job approval rating lagging across a range of major issues, including new lows for his handling of crime, gun violence and the economic recovery, a new ABC/Ipsos poll finds.

As the White House confronts rising and widespread concern about inflation, Americans are especially negative on how the Biden administration is managing this issue.

More than two-thirds of Americans (69%) disapprove of how Biden is handling inflation (only 28% approve) while more than half (57%) disapprove of his handling of the economic recovery. Partisan splits for inflation show expected negativity in Republican views (94% disapproving), but the survey also reveals weaknesses from Biden’s own party with only a slim majority of Democrats (54%) approving. Biden’s orbit is also hemorrhaging independent voters, with 71% disapproving of his handling of inflation.

MORE: Social spending plan will help ease pain from record-breaking inflation: White House

he ABC/Ipsos poll, which was conducted by Ipsos in partnership with ABC News using Ipsos’ KnowledgePanel, reveals these rocky ratings for Biden at a time when the bulk of Americans name inflation and paying everyday bills as a top concern. Concern about inflation has eclipsed worry about the coronavirus pandemic, according to recent polls from Monmouth and AP-NORC, as Republicans continuously spotlight rising prices at the gas pump and the grocery store as a key issue for the upcoming midterm elections — likely to be a referendum on Biden’s performance.

These low job assessments in areas of high public concern have led to a new low in Biden’s overall approval rating, measured by FiveThirtyEight at 43%.

Click here to read the full article at Yahoo! News