President Trump lowered the price on insulin and epi-pens. President Biden (either Joe or Jill) has signed an order raising the cost of these necessities. The cost of food, lumber and other basic have gone up—worst since 2008—and headed to the late 1970-‘s when Carter caused massive inflation. With the cost of lumber going up, the cost of new housing goes up. When the cost of food goes up, people can only afford either less food or buy lower quality food. Due to regulations like mandating all electric cars, only the wealthy will be able to afford the EV’s with the rest of us walking, on our bikes or hoping a bus will come to pick us up.
“What causes inflation? Economic experts are divided. One prominent theory is that inflation is caused by the federal government’s printing money to such an extent that prices begin to rise. For example, if each American were given $1 million and spent the entire sum on such purchases as houses, cars, and vacations, he might, initially, feel good. However, if all other Americans spent their $1 million, prices would start to rise, presumably leaving the typical American no better off.
If current inflation rates continue to rise, there will be consequences in the 2022 mid-term elections. The Republican Party, which does not control either the U.S. Senate or House of Representative, can expect to take control of both chambers”.
Just yesterday it was announced the produce price index went up 6.6%–the previous month it went up 6.2%. Just look at the cost of gas for your car. Biden polices are killing our economy and our future.
By Richard Colman, Exclusive to the California Political News and Views 6/16/21
When prices rise, all of the population is affected.
If an item that cost $100 last week costs $120 this week, everyone who buys the item is poorer.
The political consequences of continuing inflation are likely to be severe.
Inflation (higher prices) is the equivalent of a tax increase without any legislation to raise taxes.
In May 2021, according to the U.S. Labor Department, prices rose 5% over the previous 12 months.
Inflation has not been this high since August 2008, when prices rose 5.4% over a one-year period.
Inflation is not a new phenomenon. In the late 1960’s and through much of the 1970’s, inflation seemed to be unstoppable. In 1979, inflation, according to the U.S. Bureau of Labor Statistics, reached 15%.
For many years, the price of gold was linked to the American dollar. On August 15, 1971, President Richard Nixon broke the link.
For many years, $35 could be exchanged for an ounce of gold. After Nixon’s 1971 action, gold prices began to soar. As of June 15, 2021, $1,881 were needed to buy an ounce of gold. Thus, over a 50-year period, the price of gold went up by 5,400%.
Expressed another way, $10,000 in 1971, would be worth — in terms of gold — $540,000.
If an American worker in 1960 earned $10,000 a year and put the entire $10,000 into gold, the value of his gold would be $540,000 today.
In 1960, an American family could live — not well — on $10,000 a year. Generally, one spouse had to work, the family had one car, and could take a modest two-week vacation.
In 2020, the median family income in America was $78,500 a year.
Thus, family income in America has not kept up with rising gold prices.
What causes inflation? Economic experts are divided. One prominent theory is that inflation is caused by the federal government’s printing money to such an extent that prices begin to rise. For example, if each American were given $1 million and spent the entire sum on such purchases as houses, cars, and vacations, he might, initially, feel good. However, if all other Americans spent their $1 million, prices would start to rise, presumably leaving the typical American no better off.
If current inflation rates continue to rise, there will be consequences in the 2022 mid-term elections. The Republican Party, which does not control either the U.S. Senate or House of Representative, can expect to take control of both chambers.
There is no guarantee that Republican control of Congress will bring about an end to inflation. But in 1980, when inflation was running at 15%, presidential candidate Ronald Reagan, a Republican, won his election by a landslide, and Republicans took control of the Senate. The Democrats lost 12 Senate seats. After Reagan became president in 1981, interest rates soared. A sharp recession followed. Unemployment went above 10%.
Eventually, inflation slowed dramatically. Unemployment dropped. In 1984, Reagan was re-elected, winning 49 of 50 states.
The Democratic Party, besieged by inflation (as well as high crime rates and illegal immigration) needs to pay attention to rising prices. If the Democrats ignore the current warning signs, Democratic elected officials should begin searching for new jobs.
