The runaway inflation of U.S. currency is still on pace to increase even as the Biden Administration tries to cool down concerns.
According to data released on Wednesday, consumer prices rose by an average of 5.4 percent in July, further exacerbating worries over the devaluation of the U.S. dollar. The same value was recorded in June, marking the highest level of inflation observed in the country since the Great Recession of 2008.
The Daily Mail reports that there are some good signs, however, noting that the rise of consumer prices is beginning to peak in some categories. The price of used cars, for example, is up 42 percent from over a year ago, but that increase is beginning to slow down. However, the price of new cars is up by 6.4 percent over the same time period — marking the highest annual spike since 1982.
Of course, every single American that drives a vehicle has noticed the surge at the pump. Gas prices are up by a whopping 42 percent from 2020. The price of food and shelter has shot up by 3.2 percent and 2.8 percent, respectively. This has a disproportionate impact on low-income Americans.
This wave of poor economic data creates an obvious political liability for the Biden Administration, which has continued to promise that the inflation is both necessary and temporary. Republican critics have linked the development to the administration’s spending policies, which have included seemingly endless enhanced unemployment benefits, which Republicans say encourages Americans to stay at home rather than return to the labor force.
Congress has also recently passed a massive infrastructure bill, which is set to add an even heavier burden on the U.S. Treasury.
“Inflation is already crushing working-class Americans. If the Democrats pass their $3.5 trillion reckless tax and spend plan, this will get much worse,” Republican Senator Tom Cotton tweeted ahead of the bill’s passage.
Throughout American history, inflation has come and gone in waves — typically following large-scale government spending. There’s simply no way around it — the trend will continue as long as the administration’s spending policies remain.
Finance talkers Seth Denson and Dan Geltrude recently appeared on Newsmax TV to explain the details. Here’s the full clip: