Proponents of big government spending have desperately argued that mounting price inflation is just temporary. But multiple alarming inflation metrics came out for April and May, and examples of rising prices are clear to see from big-box retail stores to the real estate market.
Now, yet another metric has come in making the ongoing inflation even more difficult to deny. CNBC reports that the personal consumption expenditures price index, which the Federal Reserve uses to make policy, came in at an annualized 3.4 percent on Friday. This is the largest increase in the metric in nearly 30 years. When factoring in food and energy, the metric reports that consumer prices rose 3.9 percent from May 2020 to May 2021.
In certain sectors, price inflation is especially acute. The report says that the energy sector alone has experienced a 27.4 percent increase in prices over the last year.
Why does this matter? Well, price inflation is a form of “stealth taxation” that erodes the real purchasing power and living standards of Americans.
“After a year of lockdowns leading to job losses and pay cuts, many Americans aren’t in a position to pay… higher prices,” FEE economist Peter Jacobsen wrote. “It’s easy for someone with a comfortable job or nest egg to scoff at these price increases, but working-class and poor Americans feel the difference.”
For people living paycheck-to-paycheck, a 27 percent increase in their energy bill is a serious problem. And it’s also important to understand that, at least in part, the current price inflation can be traced back to federal monetary policy. Simply put, the Federal Reserve printed trillions of new dollars to fund “stimulus” efforts, and prices naturally rose as a result.
“The quantity of money has increased more than 32.9% since January 2020,” Jacobsen explained. “That means nearly one-quarter of the money in circulation has been created since then. If more dollars chase the exact same goods, prices will rise.”
The laws of economics don’t care about the politics of who is in charge of the federal government at the moment. As politically inconvenient as it may be for some, we just got even more confirmation that profligate federal policy is contributing to rising prices for American consumers.
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Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Policy Correspondent at the Foundation for Economic Education.
This article was originally published on FEE.org. Read the original article.
New Conservative Network Seeks Crowdfunding Help
They say we have to go big or go home. We’re trying to go big and bring the patriotic truth the the nation, but we need help.
Readers may or may not realize that over the past year, we’ve been bringing more conservative news and opinion outlets under our wing. Don’t take our expansion as a sign of riches; all of the “acquisitions” have been through sweat and promises of greater things to come for all involved. As a result, we’ve been able to bring together several independent media sites under a unified vision of preventing America from succumbing to the progressive, “woke,” Neo-Marxist ideologies that are spreading like wildfire across America.
The slow and steady reopening of America is revealing there was a lot more economic hardship brought about from the Covd-19 lockdowns than most realize. While we continue to hope advertising dollars on the sites go up, it’s simply not enough to do things the right way. We are currently experiencing a gap between revenue and expenses that cannot be overcome by click-ads and MyPillow promos alone (promo code “NOQ” by the way).
To overcome our revenue gap and keep these sites running, our needs fluctuate between $3000-$7000 per month. In other words, we’re in the red and hemorrhaging.
The best way you can help us grow and continue to bring the truth to the people is by donating. We appreciate everything, whether a dollar or $10,000. Anything brings us closer to a point of stability when we can hire writers, editors, and support staff to make the America First message louder. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well.
As the world spirals towards radical progressivism, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report and the other sites in the network going.
Thank you and God Bless,
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