American Families Are Right to Fear Biden’s Inflation

June 1, 2021 — Blog    — Select Revenue Measures    — Talking Points   

While you were out honoring the sacrifices of our brave Armed Forces this weekend, you may have missed this Axios piece downplaying the real harm of inflation, arguing:

“Inflation isn’t always and necessarily a bad thing.”

Really? America’s working families who are seeing prices jump at the fastest pace in 13 years beg to differ.

The Axios piece went on to say:

“If inflation is driven by wage hikes for people earning less than $60,000 per year, it’s not even clear that it would be a net negative for the U.S.”

But inflation isn’t being driven by wage hikes. It’s being driven by Democrats’ runaway spending and war on work.

Even former Obama-Biden economic adviser Jason Furman has admitted as much, calling Democrats’ American Rescue Plan “too big for the moment” and conceding that expanded federal unemployment has created a labor shortage.

Price increases could negate any possible wage gains—harming the very Americans we’re supposed to be helping. In an op-ed for The Hill, Stephen Moore makes this point:

The inflation rate will outpace pay raises for workers and we will have declines in living standards for those at the bottom and in the middle of the income scale and for seniors living on fixed incomes.”

KEY TAKEAWAYS: