Inflation Is Only Part of the Problem
The economic pain of everyday Americans is much worse than the inflation number. Inflation is a measure of the overall increase in the prices of goods or services across our economy. This means that the dollar is losing value. The bottom line is the same money buys less and less. The government estimates the rate of inflation using the Consumer Price Index (CPI). The calculated inflation rate does not typically reflect what Americans are experiencing because the calculation excludes the energy and food, sectors. This is done because food and energy costs are the least stable. As a result, the government’s inflation calculation is a best-case scenario. In reality, Americans are suffering significantly more than the government is stating.
Significant Increase in Cost of Living
Gasoline, food, and rental prices are the most significant costs that affect everyday Americans. In the year from April 2021 to April 2022 the price of gasoline has risen from about $2 and more than doubled to $4.21. In urban areas with subway usage down due to Covid-19, gas pricing affects a larger segment of society and significantly impacts the working class.
Rent Increases Nationwide
Basic rent in my home state of Virginia is up 20 percent. Nationwide rent prices have continued their precipitous year-over-year climb. Rents are up by double digits year-over-year. The increase is up 26.5 percent for one-bedrooms and up 25.7 percent for two bedrooms. More than 93 percent of all rental markets nationwide have seen significant increases in rent prices.
Food Costs Skyrocketing
Finally, let’s look at food costs. The overall rise in food costs are up 9 percent, but when we look at basic food products that number is an understatement. Wholesale milk prices increased by 38 percent, Egg prices are up 160.3 percent over last year. Meats have had a huge price increase with pork and beef up 14 percent to 20 percent compared with a year ago.
What does all this mean for Americans? The Biden Administration’s failures are far worse for everyday Americans. The 8.5 percent inflation rate reported by the government in April is not close to the actual pain most Americans are experiencing. Democrat Covid policies ignored food production issues and have left the country in dire straits. There is no sign that the Biden Administration and Democrat policies are doing anything to improve the situation besides blaming Russia and the pandemic. America is in for a rough ride in the years to come.
It is clear that the only way to improve the finances of everyday Americans is to elect a Congress this year that will care more about helping average Americans than over-focusing on identity politics and imagined racial strife. It is time that voters make a change.