Prices vs. Inflation Statistics

Over the past year or so, more and more Americans have been complaining about inflation, yet, on the surface, the usual statistics don’t seem to support those claims. But that’s only on the surface.

In September 2023, prices had increased by 3.7 percent compared to September 2022, according to the 12-month percentage change in the consumer price index, down from a monthly high of 9.1% in June 2022.

The problem with the statistics is that they only show the rate of price increases, not the comparison of real prices. For example, in October of this year food prices were up “only” 3.7%, but what that doesn’t reflect is the real pocketbook impact. The average cost of a pound of bacon was $5.34 in March 2020; today it’s around $7.25. That’s a 36% increase in two and a half years.

Gasoline prices have bounced around over the past three years, but even with recent price decreases, gasoline prices per gallon are 42% higher than three years ago.

For people who were already having trouble making ends meet, dealing with price increases often results in more credit card purchases. In March of 2022, the interest rate on the average credit card was 14.6%; today it’s 21.2%. With a credit card balance of $8,000 (the national average), the additional monthly interest expense is almost $50, or $600 annually.

At the same time, Americans keep racking up bigger credit-card balances. In the third quarter, the country’s credit-card debt burden hit a new record high of $1.08 trillion, according to the Federal Reserve Bank of New York. That was up $154 billion from the same period in 2022, the biggest year-to-year jump since the Fed started collecting the data in 1999. So, it’s scarcely surprising that, according to a national survey by WalletHub, 56% of all Americans say they have more credit card debt than they did 12 months ago.

All that has created, as the polls reveal, both a growing concern by most people about price increases and, apparently, a lack of understanding, particularly by Democrat politicians, who are looking more at the wrong statistics.

Assorted Stupidity

Just who’s behind all the talk and poll figures about Joe Biden being too old or the cause of higher prices? While some Republicans have mentioned it, they’re too smart to mention it, because Trump’s certainly no spring chicken, only three years younger than Biden. Nor are the rock-solid Democrats saying much. According to various polls, the people behind the ageism and ignorance that’s torpedoing Biden are largely unaffiliated voters or sometime Democrats who don’t understand economics or history.

They complain about inflation and blame it on Biden, but he didn’t start it. And, as I discussed earlier, the largest single component behind inflation is the massive increase in corporate profits and high executive pay. But those who oppose Biden and vote for the Republicans are voting for the interests and actors who caused the inflation they hate, as well as for the politicians who don’t want to give women the rights to their own bodies.

Because he’s actually going against his own party, Biden hasn’t said much, but in fact he’s done more to reduce illegal immigration than Trump ever did, and he’s done more to start revitalizing basic industry than any president in years.

But people are angry about high prices, even though inflation has moderated, and they’re going to blame the President, despite the fact that he’s not the one who triggered it. Some Republicans, like Nikki Haley, actually admit that Republicans share the blame, but most of them blame it on Biden, because it’s easier.

And, as for energy, the only real energy Trump shows is to blame everyone else at high volume. He still doesn’t have a practical plan for anything.

But almost half the country swallows his high-volume non-stop blame game, just like they feast on mass-produced “music” that features high -volume percussion and endless repetition of unintelligible lyrics. A certain similarity, perhaps?

A Slight Comparison

This past week, Sam Bankman-Fried was convicted of various financial crimes that could carry a potential sentence of over a hundred years, because he essentially created false money through his crypto-currency schemes, causing millions if not billions of dollars in losses. No one got killed, and the vast majority of those losers were speculators trying to make a quick buck. But Bankman-Fried is a crook, should face time in jail, and almost no one thinks otherwise.

Many of our elected federal representatives are demanding that a senator who took lots of money from Egyptian sources and likely influenced defense contract funding be removed from office. They’re also not too pleased with a different congressman who apparently broke every campaign financing law in the book as well as illegally diverted funds for personal use.

But, in comparison, there’s this fellow who’s already been convicted of financial fraud and tax evasion, been found guilty of sexual assault (twice) in a civil lawsuit, who’s stiffed contractors who worked for him, used bankruptcy as a tool to bolster his person wealth, who tried to overthrow a fair and free election, and who now faces four criminal indictments with over a hundred separate charges – and he’s the leading candidate for president, and forty percent of the country thinks he’s wonderful.

Exactly what does that say about both the American people and politicians who back Donald Trump?

More Idealogic Stupidity

The new House Speaker, Mike Johnson, has unveiled his proposal for providing aid to Israel, and it definitely meets the far-right’s approval. The bill would provide $14.3 billion for Israel and obtain the funding by cutting $14.3 billion from funds already provided to modernize the IRS and to provide staff to go after wealthy tax evaders. It also doesn’t deal with aid to Ukraine.

The House passed this proposed legislation late on Thursday, despite opposition from the Senate and the President’s statement that he’d veto that bill if it ever reached him, because it will cost more than a clean bill and because aid to Ukraine is important.

In point of fact, aid to Ukraine is likely more critical to U.S. interests than is aid to Israel, given that Ukraine is the tipping point for stopping Russian efforts to recreate a larger Russian “empire” and one that will most certainly take over smaller nations on its periphery if not stopped in Ukraine. Failure to address Ukrainian aid in a timely and uncomplicated way will likely cost both the U.S. and Ukraine a great deal more in the future, but “Magic Mike” has already indicated he’ll tie other right-wing priorities to Ukraine aid.

Practically speaking, the proposal as Johnson has presented and as passed by the House may well be politically appealing to the far right, but it represents partisanship carried to an extreme that’s not only totally against U.S. interests, but counter to the professed goals of the far-right.

How can that be?

The far-right claims it’s against higher taxes and wants to balance the federal budget, but it’s hard to balance the budget when the people who have the most money are avoiding paying what they owe and the IRS doesn’t have the resources and the staff to pursue them.

But then, the far-right not only doesn’t understand international problems, it also can’t count, or won’t, despite Johnson’s rhetoric about fiscal soundness. Allowing tax cheating to continue and having taxpayers wait for hours or days to get answers from the IRS because of outdated equipment, inadequate funding, and overworked and insufficient staff is hardly a recipe for fiscal responsibility.

The Republican Lexicon

Below are a few terms consistently thrown out as Republican talking points or values. Beneath each term is the actual meaning.

Smaller Government

Up to a 30% cut in virtually all programs benefitting lower income Americans; less federal funding for infrastructure and the environment; maintaining subsidies and tax breaks for wealthy individuals and corporations; cuts in foreign aid and military aid to countries such as Ukraine and nations bordering Russia and China, except for Taiwan, because we need their computer chips.

Balanced Budget

A budget balanced on the backs of the poorest Americans, with more tax cuts for the affluent and corporations.

Reducing Federal Regulations

Only reducing those regulations that cost corporations money or require them to protect the environment.

Traditional/Family Values

Emphasis on traditional two-parent family; opposition to equal pay and equal rights for women; banning books and media that depict anything other than “traditional” values; opposition to educational courses that teach unpleasant but proven facts about American society and history; opposition to anything depicting other than heterosexual relationships or life styles; opposition to a woman’s right to choose in the matter of abortion, often even when a pregnancy could kill the mother.

Immigration/Secure Borders

No more immigrants are welcome, unless they’re multi-millionaires or billionaires.

Unconstitutional

Anything proposed by Democrats.