07.12.23

Americans Continue Paying The High Price Of ‘Bidenomics’

‘Bidenomics In Action’ Is The High Prices American Families Confront At The Grocery Store, The Gas Station, Restaurants, The Barbershop, For School Supplies, And On Their Utility Bills

 

PRESIDENT JOE BIDEN: “That’s Bidenomics in action.” (Jesse Lee, @JesseLee46, Twitter, 7/12/2023)

 

The Cumulative Effect Of Inflation Since President Biden Took Office Has Americans Paying Significantly Higher Prices For Food, Energy, Transportation, Housing, And More

Since President Biden took office, inflation has increased 16.6%. (Bureau of Labor Statistics, Accessed 7/12/2023)

 

Core Consumer Prices Rose Again In June, With Housing And Basic Services Continuing To Cost More

“So-called core consumer prices, which excludes volatile food and energy categories, rose 4.8% in June from a year earlier …” (The Wall Street Journal, 7/12/2023)

‘The Cost Of Housing Again Was The Biggest Driver Of Inflation’

“The cost of housing again was the biggest driver of inflation … Rent picked up a solid 0.5% following several similar gains …” (USA Today, 7/12/2023)

Americans Are Paying More For Everyday Services Like Child Care, Dining Out, ‘Getting Haircuts, Getting Your Car Repaired, [And] Buying Car Insurance’

“Rising car prices, strong demand for labor-intensive services and an earlier surge in housing-rental prices have contributed to core inflation. ‘Where inflation is proving sticky is in services—getting haircuts, getting your car repaired, buying car insurance,’ said Leo Feler, chief economist at Numerator.” (The Wall Street Journal, 7/12/2023)

“Still, the cost of services, like restaurant meals, car insurance, child care and dental services, continue to rise rapidly. Auto insurance, on average, now costs 17% more than it did a year ago.” (The Associated Press, 7/12/2023)

 

Every Time Families Shop At The Grocery Store, They Get An Expensive Taste of ‘Bidenomics In Action’

“Food prices, meanwhile, continued to accelerate faster than overall inflation, rising 5.7% in June compared to a year ago. The price of flour rose about 12% in June compared to a year ago, roughly quadruple of the overall inflation rate; while the price of bakery products rose 9.5% over that period and the price of cookies rose nearly 9%.” (ABC News, 7/12/2023)

“Prices, though, are stubbornly rising for what retail and food executives refer to as ‘the center store.’ The middle of the store stocks items that can sit on shelves without going bad quickly, from cereal to cookies, paper towels to dish soap—all essentials that consumers can’t really put off buying.” (“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

“The persistent price increases for pantry staples are weighing on consumers and limiting their spending on other goods and services needed to power the American economy as people prioritize buying food and other necessities.” (“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

 

WSJ Illustration Of Grocery Item Inflation

(“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

KROGER CEO RODNEY McMULLEN: “The persistently high rates of inflation in these categories lasting for such a long period of time are weighing on some of the families we serve…” (“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

TARGET CHIEF FOOD AND BEVERAGE OFFICER RICK GOMEZ: “The number one thing that is on our guests’ minds is affordability…” (“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

 

‘Bidenomics In Action’ Has Parents Asking ‘What Is The Bare Minimum I Need’ For Back-To-School Supplies

“Overall back-to-school shopping is projected to shrink to $31.2 billion, compared with $34.4 billion in 2022, according to the new report, while consumers are personally expected to spend 10% less this year…. The reason for the decline falls squarely on the shoulder of inflation, causing Americans across all income levels to allocate their dollars towards utmost necessities and skip out on non-essential purchases, according to a report released Wednesday by the consulting firm Deloitte. ‘Although parents were willing to endure higher prices last year for replenishing (back-to-school) items after the pandemic, 18 months of inflation have changed their tune,’ Deloitte said, according to Reuters…. Deloitte's survey also found 69% of shoppers were reliant on sales, such as Amazon’s Prime Day, to help offset increased costs.” (“Back-To-School Shopping Decreases For First Time In 9 Years As Persistent Inflation Tightens Excess Spending,” Fox Business, 7/12/2023)

“‘This back-to-school season is all about economizing. Consumers are looking to save by shopping early, searching out deals, prioritizing spend to essential school supplies ... they're on the hunt for those bargains,’ said Stephen Rogers, the executive director at Deloitte's Consumer Industry Center…. Lupine Skelly, Deloitte's retail research leader said: ‘This year, people are like 'what is the bare minimum I need to do to get my kids out the door on those first couple weeks of school?' So (parents are) just purchasing the necessities to get that first couple weeks going.’” (“Back-To-School Shopping Decreases For First Time In 9 Years As Persistent Inflation Tightens Excess Spending,” Fox Business, 7/12/2023)

 

‘Bidenomics In Action’: ‘You Have No Choice But To Sacrifice’

“Lanise Abbott, a postal worker who lives near Chicago, said rising prices for items such as canned fruit and vegetables, bread and cereal have her scouring supermarkets for discounts and switching to cheaper food brands that she worried may be less healthy. ‘You have no choice but to sacrifice,’ Abbott said, adding that she recently paid $90 for a cart full of groceries that would last her family of three for three days. She said she would also visit food pantries if it becomes necessary.” (“The Supermarket Aisle Where Prices Are Still Soaring,” The Wall Street Journal, 7/08/2023)

“Ali Salim, 34 years old, said rising prices for rent and gasoline have squeezed his budget. His landlord raised the rent 24% last year on his one-bedroom apartment in a Seattle suburb, then another 10% this year, he said. Salim said he decided to move to a new, smaller apartment, which has fewer amenities and is 8 miles further away from the office where he works as a solutions architect at a tech company. ‘I’m going to have to drive further and spend a bit more on gas, which is another pain point,’ he said…. ‘My goal was to own a home within the next five years,’ he said. ‘With me saving so much less, I don’t know if I’ll be able to do that.’” (The Wall Street Journal, 7/12/2023)

And The Results Of ‘Bidenomics’ Continue To Squeeze Small Business Owners On Both Supply And Demand

“In Durham, N.C., Scott Pearce has had to raise prices across the board at his business, For Garden’s Sake, because costs for machinery, supplies and hourly pay for entry-level lawn mowers have climbed.” (The Washington Post, 7/12/2023)

“Richard Farino’s outlook is grimmer. The owner of District Angling, a fly-fishing shop in Arlington, Va., said he hasn’t seen this kind of drop in customer activity since the Great Recession. He pointed to waning consumer confidence in the economy that leads people to spend less on activities and hobbies. Farino is still contending with supply chain issues for the basics, like the hairs and feathers needed to make and sell flies. He feels pressure to raise prices as manufacturers increase their own costs, and worries about how much longer he can stay afloat.” (The Washington Post, 7/12/2023)

 

If Today’s Economy Reflects ‘Bidenomics In Action,’ Americans Don’t Like What They’re Experiencing

THE ASSOCIATED PRESS: ‘President Touts ‘Bidenomics’ Though New Poll Shows Just 34% Approve His Handling Of The Economy’ (“President Touts ‘Bidenomics’ Though New Poll Shows Just 34% Approve His Handling Of The Economy,” The Associated Press, 6/28/2023)

“President Joe Biden made his pitch Wednesday to a skeptical public that the U.S. economy is thriving under what he now touts as ‘Bidenomics’ -- even as a new poll showed that could be a hard sell as the foundation for his 2024 reelection campaign. In a major economic speech in Chicago, Biden said his administration’s efforts were sparking recovery after Republican policies had crushed America’s middle class. But the poll said only one in three U.S. adults approve of his economic leadership. That 34% figure is even lower than his overall approval rating of 41%, according to the survey from The Associated Press-NORC Center for Public Affairs Research.” (“President Touts ‘Bidenomics’ Though New Poll Shows Just 34% Approve His Handling Of The Economy,” The Associated Press, 6/28/2023)

“As Americans look ahead to another Independence Day and a likely contentious 2024 presidential election, many are feeling fiscal pain as the prices of food, shelter, healthcare and transportation climb higher than their paychecks. About 52% of Americans participating in a USA TODAY/Suffolk Poll said the United States is too expensive to live in. And about seven in 10 Americans said stifling inflation and the economy are the nation's top problems today, according to a new Pew Center survey. A majority across age, gender and race told Pew inflation is ‘a very big problem.’ ‘Their spending power has been minimized,’ said Gene Ludwig, former head Comptroller of the Currency, a  U.S. Treasury Department bureau.” (“Is The US Getting Too Expensive To Live In? Many Americans Worry About Economy, Inflation,” USA Today, 6/28/2023)

“Confidence in the economy remains low. A recent Pew Research Center survey ranked inflation as the public’s top concern, with Biden’s overall job approval mired at 35 percent.” (“Biden Puts All His Chips On The Table With A Push On ‘Bidenomics,’” Politico, 6/27/2023)

Fox News: ‘Fox News Poll: 9 In 10 Voters Worried About Inflation, America’s Future’ (“Fox News Poll: 9 In 10 Voters Worried About Inflation, America’s Future,” Fox News, 5/31/2023)

 

REMINDER: Big-Spending ‘Bidenomics’ ‘Intensified The Inflation Surge’

Economists And Analysts Have Repeatedly Explained That President Biden’s Economic Policies Made Inflation WORSE

“Economists largely agree that the pandemic stimulus and other spending bills Mr. Biden signed over the past two years have added to inflation … But the president made clear [in November] that he does not see a need to change course when it comes to the economy. While he may seek common ground with Republicans on some fiscal matters, such as relatively mild cuts to government spending, he is unlikely to turn sharply to a more centrist economic policy like his Democratic predecessors did.” (“An Inflation-Driven Midterm Will Not Change Biden’s Economic Focus,” The New York Times, 11/10/2022)

“Many economists have suggested that President Joe Biden’s stimulus package in March 2021 intensified the inflation surge.” (The Associated Press, 7/12/2023)

  • “[E]conomists are increasingly pointing to the scale and size of the $1.9 trillion American Rescue Plan — which Democrats passed less than two months after Biden came to office — as too big to fill the economy’s hole. This stimulus re-extended more generous unemployment benefits of $400 a week, gave many Americans another round of stimulus checks and expanded the Child Tax Credit, though it has since expired. It also strengthened nutritional assistance and school lunch programs. Many Democrats — except a rare few, such as Lawrence H. Summers, who served under Presidents Bill Clinton and Barack Obama — initially waved off concerns that the spending power of the package could overwhelm the economy and flame inflation. But over time, it became clear that the massive influx in cash that went straight to American households, plus billions more dollars pumped into the broader economy, overheated the recovery…. And as time goes on, an increasing number of economists concede that the American Rescue Plan was too big to fill the hole left by the coronavirus recession.” (“What To Know About Inflation: Rising Prices Hit In U.S., Around The World,” The Washington Post, 2/09/2022)
  • “Many economists supported protecting workers and businesses early in the pandemic, but some took issue with the size of the $1.9 trillion package last March under the Biden administration. They argued that sending households another round of stimulus, including $1,400 checks, further fueled demand when the economy was already healing. Consumer spending seemed to react: Retail sales, for instance, jumped after the checks went out. Adam Posen, president of the Peterson Institute for International Economics, said the U.S. government spent too much in too short a time in the first half of 2021.” (“Rapid Inflation Fuels Debate Over What’s to Blame: Pandemic or Policy,” The New York Times, 1/22/2022)

Democrat Economists: ‘The Original Sin Was The $1.9 Trillion American Rescue Plan,’ ‘I’m Not Sure That We Would Have The Inflation … Without The Overwhelming Stimulus That Was Applied Well Into Recovery — During 2021,’ ‘The United States Has Had Much More Inflation Than Almost Any Other Advanced Economy In The World’ Because ‘The United States’ Stimulus [Spending] Is In A Category Of Its Own’

STEVEN RATTNER, Former Obama Administration Counselor to the Treasury Secretary: “This is Biden’s inflation and he needs to own it.” (Steve Rattner, @SteveRattner, Twitter, 3/10/2022)

FORMER TREASURY SECRETARY LARRY SUMMERS: “I’m not sure that we would have the inflation if there had never been a pandemic and, even if there had been a pandemic, without the overwhelming stimulus that was applied well into recovery — during 2021.” (“Summers Says Pandemic Only Partly To Blame For Record Inflation,” The Harvard Gazette, 2/4/2022)

“‘The United States has had much more inflation than almost any other advanced economy in the world,’ said Jason Furman, an economist at Harvard University and former Obama administration economic adviser, who used comparable methodologies to look across areas and concluded that U.S. price increases have been consistently faster. The difference, he said, comes because ‘the United States’ stimulus is in a category of its own.’” (“Rapid Inflation Fuels Debate Over What’s to Blame: Pandemic or Policy,” The New York Times, 1/22/2022)

 

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Inflation, Economy