The Biden administration has taken government overspending to a new level, sending the country into an inflationary spiral. Through trillions of dollars in COVID-19 relief packages, infrastructure spending, vote-buying student loan forgiveness programs, and the political “Build Back Better Agenda,” the White House has swamped the economy and eroded consumer purchasing power. From energy to food, we are paying more and more and receiving less and less.
According to the House Budget Committee, the average family of four pays about $1,143 more per month than at the beginning of 2021 for the same goods and services; this includes increased gas costs. President Joe Biden has not changed course, telling voters the private sector is to blame and that he has the answers. He doubled down on his efforts to “solve” the problem by proposing more stifling, job-killing regulations—regulations that would inevitably drive inflation to new heights.
Energy prices are a central component of inflation. If it costs more to transport goods, prices will rise. Yet the president began pursuing an anti-energy agenda within hours of being sworn in. That’s not surprising after a halt to pipeline construction, along with new regulatory burdens on energy exploration.
When supply is restricted, prices rise. But that hasn’t stopped Biden from blaming energy companies — the very companies reduce During the Trump administration, relatively free-market prices hit record lows. He is now threatening them with tax increases that will further increase costs for consumers.
It’s no secret that the government’s fiscal irresponsibility has led to inflation and the Federal Reserve raising interest rates, which in turn has jeopardized the American dream of homeownership. The average 30-year fixed mortgage rate, which was less than 3% at the end of 2020, has surged to nearly 8%. That means the average homebuyer now needs to earn an extra $47,000 per year to purchase a home compared to four years ago. Some economists rightly believe that “higher money costs” (not measured by an inflation index) explain why people remain so uneasy about inflation despite its statistical decline.
The president has again shifted the blame to his predecessor, falsely claiming that inflation was near double digits when he took office.
Don’t forget about renters, who, like homebuyers, are no better off now than they were before Biden’s aggressive regulatory spree. Between March 2020 and July 2023, the national median monthly rent increased from $1,614 to $2,038, an increase of 26.26%. In the past four years, rental prices have soared by approximately 29.4%, with an average annual increase of approximately 7%.
Yet again, the Biden administration has found a convenient scapegoat in the private sector. It frees up the Justice Department’s authority over RealPage, a U.S. software provider that helps landlords determine market pricing for their rental properties.
The existence of companies like this should not be controversial. Today, nearly every industry, from grocery stores to airlines, uses similar tools to make better decisions about inventory pricing based on supply and demand. But the government needs someone to blame, and there aren’t many other viable targets for it to attack.
Politicians blaming others for their mistakes is nothing new. Gone are the days of President Harry S. Truman when “the buck stops here.” Our current president will be more successful if he turns things around, ends the spending binge that’s hurting American families, and restores fiscal responsibility to the nation’s budget.
We are witnessing success in this regard in Argentina, a country that has long struggled with inflation, excessive government spending, and the erosion of economic stability and the prosperity of its people. Newly elected President Javier Milley imposed financial restrictions on the government, closing institutions and programs once considered sacrosanct. As a result, inflation is down, incomes are up, and the country is quickly becoming a shining light of economic prosperity after decades of darkness and decadence. Its economy is growing for the first time in decades.
Some of Milley’s platform – focused on shrinking government, cutting unnecessary spending and implementing free-market policies – offered a promising path to economic recovery. Maybe it’s time for America to follow suit.
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