What happens when a government allows millions of foreign nationals to enter their country without work lined up, who shuts down pipelines and add more regulations driving up energy costs by up to 50%, who pays workers more COVID unemployment benefits than they were making when working thus causing a shortage of workers bottlenecking the transportation systems, ETC.?
You end up in Joe Biden’s declining, inflation climbing, Unites States Of America.
According to the University of Pennsylvania’s Wharton School’s budget model, Americans on average will have to spend $3,500 more in 2021 to sustain their consumption of years past in 2019 and 2020.
The study also suggests low-income families will be disproportionally impacted. The Impact of Inflation by Household Income study estimated lower-income families will have to spend seven percent more money to maintain their previous consumption patterns, while higher-income families will only have to spend six percent more.
However, because of variation in the composition of consumption bundles, we find that higher-income households had smaller percentage increases in their total expenditure. Higher-income households spent relatively more on services, which experienced the smallest price increases. On the other hand, lower-income households spent relatively more on energy whose prices had large increases. Under the fixed 2019 bundle assumption, the bottom 90 percent saw their consumption expenditure go up by between 6.7 percent to 6.9 percent in 2021.
Another month of rising prices under Biden:
Gas: +58.1% since last year
Propane & Firewood: +34.3%
Used Cars & Trucks: +31.4%
Hotels & Motels: +25.5%
Car & Truck Rentals: +37.2%
— Jacki Kotkiewicz (@jackikotkiewicz) December 10, 2021
Across the consumption basket of income groups, the bottom 20 percent of families saw the price of their consumption increase 6.8 percent, or $2,120.
The top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.
Meanwhile, the top five percent of income-earning families will only experience a 6.1 percent ($7,636) increase in consumption.
“Since higher-income groups had a bigger increase in expenditures in all categories, they also saw a bigger increase in total expenditure,” the study read. “However, because of variation in the composition of consumption bundles, we find that higher-income households had smaller percentage increases in their total expenditure.”
A new Fox Business Poll confirms that Americans are feeling the extra money slipping through their fingers, just to maintain the same standard of living.
The good news is Bidens’ BBB spending bill is tabled until at least 2022. It might not help a lot but at this point, We The People will take any break in costs we can get.