I’d like to say that I had good news to report today regarding the inflation we were assured would be temporary by the powers that be. Unfortunately, it’s only accelerating, with middle-class families seeing the entirety of the past several years’ wage growth wiped out over the course of a few months.
Today, the record for the year-over-year increase in producer cost inflation was set at 7.8% and there’s no end in sight. That breaks the previous record which was set in June of this year.
*U.S. PRODUCER PRICE INFLATION JUMPS 7.8% IN JULY, LARGEST Y/Y INCREASE ON RECORD pic.twitter.com/E6rhvSy9az
— Investing.com (@Investingcom) August 12, 2021
Producer cost inflation is derived from the producer price index which is essentially a measurement of the selling costs of different products to retailers (wholesale costs) as compared to the previous year. In other words, these are costs that are being directly passed onto the consumer. Things are so out of control that PCI rose 1% between June and July alone. That’s a number that is just short of what it would normally take us a year to reach (around 2% annually).
Here’s a sampling of some of the most notable increases.
STOP COMPLAINING YOU SAVED $0.16 ON BBQ MEAT pic.twitter.com/IxOoqHxJ7l
— matt’s idea shop (@MattsIdeaShop) August 12, 2021
What was Joe Biden’s response to this? Well, he took to the teleprompter to let it be known that his “build back better” policies were actually lowering costs. It’s like he’s on another planet.
More jobs. Tax cuts. Lower costs.
That’s my Build Back Better Agenda. pic.twitter.com/fYp0GwKF1U
— President Biden (@POTUS) August 12, 2021
Did you get a tax cut? Because I don’t remember getting a tax cut? Perhaps he’s talking about trying to reinstate the SALT tax deduction, but that’s simply a giveaway to the very rich in blue states with high-income taxes. Regardless, he’s certainly not doing anything to lower costs. Rather, we are seeing the exact opposite of that.
People’s savings are melting away (which is why you’d be wise to move some money into mutual funds, real estate, or anything that produces a return) right now without them spending a dime of it. And what’s Biden doing? Lying to people and eating chocolate, chocolate chip ice cream for the cameras. The optics and the reality of it all are just insane.
Democrats have no answer to this because it’s their spending policies that are causing it, and they are too entrenched to reverse course. Instead, we’ll get silly qualifiers and more false assertions that this is all transitionary. Meanwhile, Republican senators are simultaneously passing a $1.2 trillion infrastructure package, handing Democrats a major win, that will only make the inflationary woes worse. Isn’t Washington just great?
And as if that weren’t bad enough, we have a senile old man leading us who simply reads 40-font words that his far-left handlers type up for him. Is he even aware of how ludicrous he sounds when he insists he’s lowering costs as inflation keeps setting records? Honestly, I’m not sure he does.