{"id":1416605,"date":"2022-04-03T08:14:44","date_gmt":"2022-04-03T12:14:44","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1416605"},"modified":"2022-04-03T08:14:47","modified_gmt":"2022-04-03T12:14:47","slug":"bidenflation-is-costing-the-average-family-433-a-month","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenflation-is-costing-the-average-family-433-a-month\/","title":{"rendered":"Bidenflation Is Costing the Average Family $433 a Month"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidenflation-is-costing-the-average-family-433-a-month%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1416605&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><span>Another day, another alarming inflation metric. We just got the numbers for the Personal Consumption Expenditures index (PCE), the Federal Reserve\u2019s favored inflation metric, and they\u2019re jaw-dropping. The PCE <\/span><a href=\"https:\/\/www.nationalreview.com\/news\/key-inflation-gauge-reaches-40-year-high-as-fuel-food-prices-skyrocket\/\"><span>hit a 40-year high in February<\/span><\/a><span>, with the measured prices rising 6.4% year-over-year.\u00a0<\/span><\/p>\n<p><span>What does this mean in real life?<\/span><\/p>\n<p><span>A new <\/span><em><span>Bloomberg<\/span><\/em> <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-03-29\/u-s-households-face-5-200-inflation-tax-this-year-chart\"><span>analysis<\/span><\/a><span> sheds some light on this key question. It finds that this year, inflation will cost the typical US household an additional $5,200 just to afford the same goods as last year. That\u2019s $433 a month taken out of the average family\u2019s budget.<\/span><\/p>\n<p><span>Why is this happening?<\/span><\/p>\n<h2>Inflation is a Policy Choice<\/h2>\n<p><span>In the mainstream media and among progressive economists, price <a href=\"https:\/\/fee.org\/articles\/how-inflation-drinks-your-milkshake\/\">inflation<\/a> is often portrayed as an abstract force beyond our control, like the weather. But in reality, it is directly caused by reckless government policies.<\/span><\/p>\n<p><span>The Federal Reserve decided to \u201cstimulate\u201d the economy amid the pandemic by (digitally) printing trillions of new dollars out of thin air. But scarcity and trade-offs are the defining reality of economic life, so their actions had consequences. By putting trillions of new dollars out into the economy, they made the dollars Americans currently held less valuable\u2014inflating away our savings and wealth.\u00a0<\/span><\/p>\n<p><span>Just consider the below <\/span><a href=\"https:\/\/fred.stlouisfed.org\/series\/M2SL\"><span>graph<\/span><\/a><span>, which shows the number of US dollars in circulation over the last 5 years:<\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/fee.org\/media\/41502\/screen-shot-2022-03-31-at-22758-pm.png?width=600&#038;height=224.56140350877192\" alt=\"\" data-udi=\"umb:\/\/media\/feb7fdf3a17e43b5b82cddabb2adaf14\" \/><\/p>\n<p><span>What\u2019s more, the federal government flooded the economy with \u201cstimulus\u201d money.\u00a0<\/span><\/p>\n<p><span>It ran up massive, multi-trillion-dollar budget deficits\u2014at the very time various levels of government were restricting economic life and constraining supply. Through trillions in debt, Congress signed us up for grave economic costs in the future in order to artificially inflate consumer demand in the short term, which doesn\u2019t work as \u201cstimulus\u201d to begin with.\u00a0<\/span><\/p>\n<p><span>Yet when you do this at the very same time you are constraining the economy and hindering the supply chain, it\u2019s inevitable that price levels overall will surge as demand so far outpaces supply.\u00a0<\/span><\/p>\n<p><span>So, no, inflation isn\u2019t an abstract phenomenon. But it is, essentially, an indirect tax on everyday Americans.<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\">Inflation will cost the average US family an extra $5200 this year just to maintain their same life.<\/p>\n<p>That&#8217;s a tax on Americans, thanks to the Federal Reserve&#8217;s money-printing &#038; the federal government&#8217;s fiscal recklessness. <\/p>\n<p>Inflation is a policy choice.<\/p>\n<p>Hold them accountable.<\/p>\n<p>\u2014 Brad Polumbo \ud83c\uddfa\ud83c\uddf8\u26bd\ufe0f \ud83c\udff3\ufe0f\u200d\ud83c\udf08 (@brad_polumbo) <a href=\"https:\/\/twitter.com\/brad_polumbo\/status\/1509665450669617155?ref_src=twsrc%5Etfw\">March 31, 2022<\/a><\/p><\/blockquote>\n<h2>Inflation is a \u2018Stealth Tax\u2019<\/h2>\n<p><span>What is a tax, after all, other than a cost forcibly imposed on the citizenry to finance\/enable government expenditures? And that also perfectly describes the inflation currently hitting Americans in the wallet.\u00a0<\/span><\/p>\n<p><span>The government wanted to engage in reckless money-printing and spending without bearing the political brunt of directly raising peoples\u2019 taxes. As a result, our savings were inflated away.<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\">When the money printer goes &#8220;brr,&#8221; your wallet goes &#8220;ouch!&#8221;<\/p>\n<p>\u2014 Brad Polumbo \ud83c\uddfa\ud83c\uddf8\u26bd\ufe0f \ud83c\udff3\ufe0f\u200d\ud83c\udf08 (@brad_polumbo) <a href=\"https:\/\/twitter.com\/brad_polumbo\/status\/1509666002128326667?ref_src=twsrc%5Etfw\">March 31, 2022<\/a><\/p><\/blockquote>\n<p><span>That\u2019s the textbook definition of a \u201cstealth tax.\u201d<\/span><\/p>\n<p><span>Even John Maynard Keynes, hardly a free-market economist, famously acknowledged this reality.<\/span><\/p>\n<p><span>\u201c<\/span><span>By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens,\u201d Keynes once said.\u00a0<\/span><\/p>\n<p><span>Keynes found agreement on this point from across the spectrum. Nobel-Prize-winning free-market economist Milton Friedman similarly quipped that \u201c<\/span><span>inflation is taxation without legislation.<\/span><span>\u201d<\/span><\/p>\n<p><span>Ultimately, Americans shouldn\u2019t fall for this financial sleight-of-hand.\u00a0<\/span><\/p>\n<p><span>\u201cInflation\u201d isn\u2019t really what will cost families $5,200 extra this year. The government is what\u2019s truly imposing that burden upon us all.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another day, another alarming inflation metric. We just got the numbers for the Personal Consumption Expenditures index (PCE), the Federal Reserve\u2019s favored inflation metric, and they\u2019re jaw-dropping. The PCE hit<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1416605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1416605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1416605"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1416605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1416605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1416605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1416605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}