WASHINGTON, DC, Dec 17 — Gee, that’s funny. It doesn’t feel “transitory.” People are hurting, and President Biden says, hang in there, I’ll get this pesky, temporary inflation under control. Meanwhile, the statistics and the polls show that Americans are suffering from an inflationary spiral, the likes of which has not been seen in decades — with no end in sight.
Meanwhile, Biden’s own Treasury Secretary, Janet Yellen, and his Federal Reserve Chairman, Jerome H. Powell, warn that we’re not going to be out of the woods for quite some time to come. Contradicting her boss, Ms. Yellen states flatly that, “I am ready to retire the word transitory.” And Mr. Powell says, “The risk of higher inflation becoming entrenched has certainly increased. I don’t think it’s high at this moment, but I think it’s increased.”
Just last week, the Bureau of Labor Statistics [BLS] issued a report showing that the Consumer Price Index [CPI]] currently stands at 6.8%– a level that has not been seen for four decades. The CPI confirms the fact that everything from the gas you put in your car to family meals cost more, much more, in the Biden era.
And then, there is the Producer Price Index [PPI], which measures the selling prices received by domestic producers for their output. The Bureau of Labor Statistics reports that the PPI “rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010.”
Putting all of these statistics into context is a Gallup Poll conducted earlier this month. It shows that:
- 45% of Americans report financial hardship triggered by increased prices
- 10% describe the hardship as threatening their current standard of living
- Seven in 10 lower-income Americans experiencing hardship
Gallup concluded that the inflation we are experiencing is anything but “transitory,” as our president would have you believe. Its report made it clear that “Rising prices are expected to persist, meaning more Americans are likely to report hardship, and those most vulnerable are likely to see things get worse before they improve.”
So, who hurts the most in this new era of inflammatory inflation? The younger you are, the less likely you are to feel the pain, and so you say to yourself: this, too, shall pass. But the older you are, inflation takes its toll. It can have a disastrously measurable impact on your remaining years. It eats at the nest egg you’ve put away. It even has a potentially devastating impact on your Social Security income.
According to the Investopedia Website, “In terms of the actual amount of money that inflation can cost retirees, the numbers are startling. LIMRA Secure Retirement Institute constructed a model demonstrating the effect inflation could have on the average Social Security benefit over a period of 20 years. According to its research, a 1% inflation rate could swallow up $34,406 of retirees’ benefits. If the inflation rate were to increase to 3%, the shortfall would total more than $117,000.” Bear in mind that the CPI is currently reporting a 6.8% inflation rate.
Similarly, inflation increases the cost of living for low-wage earners. Dana M. Peterson, chief economist at The Conference Board, says it is not a passing impediment for them; it will have repercussions for many years to come. “To understand why, imagine a family earning less than the median wage of about $58,600 a year, pre-tax. Their after-tax income is even smaller, leaving less room for spending. Using data from the Bureau of Labor Statistics (BLS) 2019 Consumer Expenditure Survey, my own calculations reveal that families earning $50,000 or less annually, on average, spend anywhere from 110% to 340% of their after-tax income on rent, food and utilities each year. This means that many of these families are borrowing just to make ends meet.”
Here’s a suggestion for future articles on this subject: Rather than continue to run redundant articles that basically restate the same points over and over again, it might be beneficial for AMAC to run a series of articles outlining how seniors living on fixed low incomes can weather this period of much higher inflation that even the Federal Reserve is now acknowleging it will take years to bring back under semblance of control.
While many seniors here likely remember how they developed workarounds to cope with the high inflationary times of the 1970s, there are probably many others that could use a refresher of sorts on how to cope with the economic environment that socialist Democrat policies have returned us to once again. Just a thought.
We have always been able to pay for our out of pocket medical debt with our Social security and pension income but now we are having to use credit cards again and because my husband suffered a massive stroke and will never be able to work again, I have had to pick up whatever part time work I can to supplement our income.
Sometimes I put off getting medical care because I can no longer afford to pay co pays for Specialist.
Some of our doctors will bill us and/or accept payments but most won’t.
Doctors need to once again allow people to get treatment and make payments.
At least until this inflation period passes.
Try living on 1,800 a month. My standard of living was low before & now it is a daily chore to meet basic requirements. It is sad people on Social Security plus retirement have to endure such a low standard of living & it is worst every day. Illness depleted my savings & I do not qualify for Medicaid or other forms of assistance, as I am just over the limit to qualify. I was doing ok under Trump, not rolling in money, but doing ok. Now every item I buy cost more & all these cost add up to less.
However, Democrat and RINO politicians in government don’t feel this pain, they can joke about it like Psaki, Biden, AOC, and Buttigieg – “Let them eat cake!” They are like Obama now “independently” wealthy with our taxpayer money. Time for an Article V Convention of States to bring about some real “hope and change”, drain the swamp, close our borders, and “redistribute” the money these left wing politicians have stolen for so long, time for term limits, and mandatory security background checks for them and our bureaucracy, to see which of them are naughty, or nice.
I have nothing good to say about Biden and his administration. Our country as it stands is in trouble and only God Amighty can fix it.
Thank you for listening to a one of many concerned American citizen.
Lmao…even the lying mainstream media can’t convince people that there is no inflation. Joe and his party that are in the majority and are railroading their destructive agenda down our throats can’t weasel out of this and blame Trump…lol. FJB
We need to vote R in 22 and 24. The only thing politicians understand is the fear of losing their job. Once we do get control of this country again and the R’s get things fixed, let’s remember this time and not get fat and lazy and let the Dems take over again……
Biden can lie about but inflation but almost everyone sees it everyday. He’s a fool and so is everyone else that thinks inflation will go away soon. Who honestly thinks that prices will go back down? Are people going to give their pay raises back? Is fuel going to be cheaper? Is Biden going to spend less? NO< NO< NO , the damage is done and Biden must except that his policies are to blame.
Liberalism is a mental disorder and Democrats are insane and cognitively sterile.
These so-called leaders are sitting there raking in their riches while creating more poverty situations than their fake words claim they are helping. All I know is that history will not lie about the effect they have made in pulling the USA downwards just like all those socialist leaders did for their governments. The problem is that too many people actually believe the lies coming out of their mouths. I don’t.
Biden doesn’t care about inflation; it will NOT affect him and his wife. They live the life of the richest of the rich people on planet earth. All on the backs of the tax payers. Creepy!!!!!!!!!!
Borrowing?? Fixed income people DO NOT have that option. We go without. Little fruits and vegetables, because their cost is exorbitant. Almost no meat, ever. Waiting for lower prices….
Heating?? Lol. My thermostat is currently at a very cold 62°! It has to remain within the budget, no matter how the cost of useless “green” energy drives up our heating costs. We don’t “borrow” to cover that tax. We lower the thermostat…..
Leftists, Communists: may you all freeze to death!
These sorry “leaders” don’t have to “want” anything. So how can they identify with “the little people”? All the shortages should take place at their level FIRST. THEN we might see some immediate progress for the problems at hand. Only in a perfect world.
How many times have we heard that this skyrocketing inflation trend is “transitory”? Over and over again, “It’s transitory…..”
So, what’s on the other side of that mountain? If increasing inflation is transitory, then when it comes down, as Jokin’ Joe claims it will, isn’t that deflation? And isn’t that bad for our economy? Does that signal a recession coming in the near future? Fasten you seat belts.
Meathead Biden and Psaki the liar said that we have inflation because of the greedy meat companies. Give me a break. It’s because of Biden’s awful policies that hurt everyone.
If the election was legal, I hope the people who voted for Biden recognise their mistake, however the rich and the elitist are not burdened with this, in fact they may even be prospering. May God have mercy on their soul for the lifes they are taking and those they will take.
I laughed when we were told our Cola increased by 5.9% for 2022 because “prices have gone up.” Bull. Cola went up to buy votes, period.
OK folks, it’s simple economics. THEY borrow more, WE pay more. One way or the other. Any questions?