“Infrastructure” Spending and Inflation

“… core inflation on an annual basis was 9.2% in May and 5.2% over the first five months of 2021. Most ominously for the political class, rising inflation for the last two months has outstripped wage gains, meaning that real average earnings have fallen.” – Excerpt from the Wall Street Journal, A Made-in-Washington Inflation Spike

Apparently, socialism causes inflation …

The U.S. Bureau of Labor Statistics just released the latest update on the Consumer Price Index and it shows the economy is running very hot:

• The all items index rose 5 percent over the last 12-months —the largest 12-month increase since August 2008.

• The index for all items except food and energy rose 3.8 percent—the largest 12-month increase since June 1992.

• The energy index rose 28.5 percent over the last 12-months. Gasoline is up 56 percent—the largest 12-month increase since April 1980.

 The National Federation of Independent Business’ (NFIB) May survey of small businesses found that 40 percent of owners (seasonally adjusted) are raising average selling prices, the highest reading since April 1981. And still, there’s a record high 48 percent of business owners with job openings but no workers to fill them because the Democrats continue to pay people more to stay home than to go to work.

The last thing our economy needs right now is President Biden’s plan to spend another $4 trillion and impose huge, job-killing tax increases on families, workers, and businesses.

Resources:

GOP Ways and Means: Explainer: President Biden’s Global Tax Hike is Not a Victory for America, but a Surrender

Committee to Unleash Prosperity: Bonus Unemployment Benefits Are Causing Major Labor Shortage in America

Wall Street Journal: The American Jobs (Reduction) Plan

Axios: Half of the Pandemic’s Unemployment Money May Have Been Stolen