Inflation climbed 5.4% in July. $ 3.5 trillion in new spending would push it higher
With prices rising 5.4% in July from a year ago, an unreported peak by the Bureau of Labor Statistics since the onset of the Great Recession in the summer of 2008, it is not the time to exceed $ 3.5 trillion in additional government spending that inflates prices. hit poor and minority families harder.
In the early hours of Wednesday morning, Senate Democrats passed a budget measure allowing them to push forward a hyper-partisan $ 3.5 trillion spending plan in the weeks to come. This spending plan was released less than 24 hours earlier, with lawmakers showing a shocking lack of transparency around such a massive undertaking.
The higher the government spending, the more inflation continues to rise and devalue the US dollar. Americans are realizing it. A May 2021 Harvard University poll with HarrisX found “massive government spending” to be what Americans believe is the main cause of inflation. This was followed by “large” injections of money by the Federal Reserve and, third, by “runaway government deficits”.
The surge in food prices under Biden has hit minority families the hardest, Bloomberg News reported. A recent Bloomberg News / Morning Consult poll shows that about one in three Americans spends more on groceries. A majority of American adults said they pay higher prices for red meat, chicken, fruit, toilet paper and milk. Buyers of red meat were the most likely to report higher prices.
More than 40% of black respondents reported higher costs in grocery stores in 2021. Morning Consult economist John Leer said minority communities are hit harder because of the disproportionate impact of the pandemic. With job cuts and less income, more meals are prepared at home, resulting in higher grocery bills.
The fact that the US government continues to spend on “human infrastructure” to help the vulnerable is getting us in the foot in terms of actually helping the poor. It perpetuates a cycle of addiction rather than helping Americans stabilize and build generational wealth.