13% inflation in America during the Biden era
According to IRNA, the New York Post added on Tuesday night that, according to the calculations of Peter C. Earl, an economist at the American Economic Research Institute, American inflation has increased by more than 13% since Biden’s inauguration in January 2021. Meanwhile, core inflation, which excludes volatile food and energy prices, has increased by almost 10 percent compared to the same period last year.
According to the report, wages have only increased by 8%, which has effectively reduced the wages of the middle class of Americans, and this group is struggling to meet daily necessities such as food, gas and rent.
Earl stated that the income of the American people is far behind the wave of inflation, and said that inflation has a devastating impact on their standard of living.
The data shows that the prices increased by 8.3 percent in August compared to the same period of the previous year and peaked. While the main inflation rate increased by 6.3% compared to last year. Both figures were higher than economists had expected.
In his speeches, Biden played down the worse-than-expected data and pointed to the improvement in gasoline prices, which he says is a sign that inflation is moderating.
Biden said in a statement: “Today’s data shows further progress in deflating the US economy.” In general, the prices in the country have been stable in the last two months. This is good news for American families, and more needs to be done.”
Still, spending on staples is much higher than it was when Biden took office promising to restore prosperity to the middle class.
According to Thomas Phillipson, an economist at the University of Chicago and acting chairman of the White House Council of Economic Advisers during the Trump administration, Biden’s policies have contributed to a “triple threat” and hit household budgets.
“He has increased demand dramatically with fiscal policy,” Phillipson says. Increased demand drives up prices. And then he has constrained supply, particularly in energy, but also in other sectors, by his regulatory administration, which is far-reaching compared to Trump’s. “Even compared to the Obama era, the figures are very large.”
Besides, the Fed basically made money off of this by printing money. “When you have more money to buy more goods, prices go up.”
Phillipson added that overall inflation has increased by 14 percent in the past two years until August.
He clarified that the increase in wages shows that American workers faced a “reduction in the standard of living” in the last two years.
He added: “For the past two years, incomes have not been consistent with the increase in prices, and this is the real and everyday problem of the American people.”