Biden Vows To Change ‘Nothing’ As His Inflationary Economic Policies Squeeze Family Budgets

Asked If He’ll Do Anything Differently As 75% Of Americans Say The Country Is On The Wrong Track, Biden Declared, ‘I’m Not Going To Change Anything In Any Fundamental Way’

THE ASSOCIATED PRESS’ ZEKE MILLER: “You mentioned that Americans are frustrated. And, in fact, 75 percent of voters say the country is heading in the wrong direction … What in the next two years do you intend to do differently to change people’s opinion of the direction of the country, particularly as you contemplate a run for President in 2024?”
PRESIDENT BIDEN: “Nothing, because they’re just finding out what we’re doing…. So, I’m not going to change the direction…. I’m not going to change anything in any fundamental way.” (Presidential Press Conference, Washington, DC, 11/09/2022)

BIDEN: “My economic plan is showing results …” (“Statement by President Joe Biden on the October Consumer Price Index Report,” The White House, 11/10/2022)

“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 on Wednesday 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)

Yet ‘Inflation Continues To Hammer Basic Necessities Like Housing, Food And Gas,’ As Prices Increased 7.7% Year-Over-Year In October

“Prices rose 7.7 percent in October compared with the year before, and 0.4 percent over September, the same rate as the previous month, according to data released Thursday morning by the Bureau of Labor Statistics. That’s far above normal levels …” (The Washington Post, 11/10/2022)

“Inflation continues to hammer basic necessities like housing, food and gas. The shelter index made up more than half of the monthly increase, showing how high rental costs remain despite a recent slowdown in the housing market. Rent was up 0.7 percent compared to the month before, and it’s up 7.5 percent over the year.” (The Washington Post, 11/10/2022)

• “Gasoline prices rose 4 percent over September … Gas is also up 17.5 percent over the past year …” (The Washington Post, 11/10/2022)

• “Costs for meats, poultry, fish and eggs rose, as did the cost of cereals and bakery products.” (The Washington Post, 11/10/2022)

“Price pressures have remained stubbornly high in large part because they have spread increasingly from goods to more labor-intensive services—such as shelter, medical care and car insurance—where inflationary momentum tends to be slow to reverse once it gets going.” (“October Inflation Report Shows Consumer Prices Rose 7.7% From Year Earlier,” The Wall Street Journal, 11/10/2022)

October marked the EIGHTEENTH consecutive month in which inflation rose at least 5 percent year-over-year. (Bureau of Labor Statistics, Accessed 11/10/2022)

• October also marked the ELEVENTH consecutive month in which inflation rose at least 7 percent year-over-year. (Bureau of Labor Statistics, Accessed 11/10/2022)

Since President Biden Took Office, Prices For Food, Energy, Transportation, And Housing Have Increased At Staggering Rates

• Grocery (food at home) prices have increased 18.4%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Food away from home prices have increased 13.4%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Energy prices have increased 46.3%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Prices for fuel oil have increased 123.3%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Gasoline (all types) prices have increased 63.5%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Natural gas prices have increased 45.7%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Electricity prices have increased 21.8%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Rental prices for a primary residence have increased 10.1%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Prices for used cars and trucks have increased 33.1%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Prices for new vehicles have increased 17.9%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Furniture prices have increased 20.6%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Apparel prices have increased 9.9%. (Bureau of Labor Statistics, Accessed 11/10/2022)

• Airline fares have increased 46.6%. (Bureau of Labor Statistics, Accessed 11/10/2022)

Meanwhile, Americans Continue Giving Up More Of Their Paychecks To Inflation, With Year-On-Year Real Average Weekly Earnings Decreasing 3.7%

“Real average hourly earnings decreased 2.8 percent, seasonally adjusted, from October 2021 to October 2022. The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.7-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, Accessed 11/10/2022)

Some Americans Are Turning To Credit Cards To Cover Expenses, Even As Interest Rates Climb

“With prices climbing faster than incomes on average, some people are digging into savings to help cover expenses. Others are relying on credit cards, even though it's getting more expensive to carry a balance. The average interest rate on credit cards now tops 19%, according to Bankrate — up from 16.3% at the beginning of the year…. The outstanding balance on credit cards and other forms of revolving debt rose nearly 13% in the summer and early fall, according to the Federal Reserve.” (“Rising Prices Are On The Menu For Thanksgiving, With Inflation Currently At 7.7%,” NPR, 11/10/2022)

‘The Big Driver Of Inflation Right Now Is High Rent’

THE WASHINGTON POST’S HEATHER LONG: “The big driver of inflation right now is high rent. Rent rose 7.5% from Oct '21 to Oct '22 -- the largest increase since 1982. The other popular rent gauge, the "Owners’ equivalent rent," rose 6.9% -- the largest increase ever. This really hurts. About 25% of Americans rent.” (The Washington Post’s Heather Long, @byHeatherLong, Twitter, 11/10/2022)

“Housing costs, nonetheless, are a strong source of inflationary pressure. They make up two-fifths of core-CPI inflation and tend to move slowly, since they are based on leases that are typically negotiated just once a year, and not on home sales prices. ‘Because market rent increased so dramatically, landlords have been more likely to push really hard for increases. They’re OK allowing one or two months of vacancies because it’s still more profitable,’ said Tiffany Wilding, North American economist with bond fund Pimco. That together with high mortgage rates making homes harder to buy ‘mean we’ve really seen rents take off, and it takes time to come back down.’ Ms. Wilding doesn’t expect annual housing-cost inflation, as measured in the CPI, to peak until next spring …” (“October Inflation Report Shows Consumer Prices Rose 7.7% From Year Earlier,” The Wall Street Journal, 11/10/2022)

‘Rising Prices Are On The Menu For Thanksgiving’

“As Americans prepare to gather for Thanksgiving, the high cost of both turkey and travel is grating on their sense of gratitude. At many family get-togethers this month, inflation will be on the menu. Wholesale turkey prices have jumped 23% from a year ago, gobbling up a big chunk of the holiday budget. Potatoes and cranberries are more expensive as well. ‘We haven't caught a break yet,’ says Michael Swanson, lead agricultural economist at Wells Fargo…. Grocery prices in October were 12.4% higher than a year ago, according to a report from the Labor Department released on Thursday. That outstrips the overall inflation rate of 7.7%.” (“Rising Prices Are On The Menu For Thanksgiving, With Inflation Currently At 7.7%,” NPR, 11/10/2022)

“[M]illions of people are paying a premium to see distant family members this year. Airfares declined slightly in October from the previous month, but are still nearly 43% higher than they were a year ago.” (“Rising Prices Are On The Menu For Thanksgiving, With Inflation Currently At 7.7%,” NPR, 11/10/2022)

Diesel Prices Have ‘Remained Stubbornly High,’ Acting As ‘An Inflation Accelerant, And The Consumer Ultimately Has To Pay For It’

“[T]he price of diesel, the fuel that moves trucks, trains, barges, tractors and construction equipment, has remained stubbornly high, helping to prop up the prices of many goods and services. On Wednesday, a gallon of diesel fuel in the United States cost $5.357 on average, according to AAA. That was … well above the $3.642 it cost a year ago.”  (“Price of Diesel, Which Powers the Economy, Is Still Climbing,” The New York Times, 11/10/2022)

“[D]iesel prices are a critical source of pain for the economy because they affect the cost of practically every product. ‘The economic impact is insidious because everything moves across the country powered by diesel,’ said Tom Kloza, the global head of energy analysis at the Oil Price Information Service. ‘It’s an inflation accelerant, and the consumer ultimately has to pay for it.’” (“Price of Diesel, Which Powers the Economy, Is Still Climbing,” The New York Times, 11/10/2022)

“Sherri Garner Brumbaugh, the president of Garner Trucking in Findlay, Ohio, said the weekly cost of fueling one of her heavy-duty trucks in September was $1,300, more than double the $600 she paid two years earlier. ‘A good portion gets passed onto my customers with a fuel surcharge,’ she said.” (“Price of Diesel, Which Powers the Economy, Is Still Climbing,” The New York Times, 11/10/2022)

Diesel Supplies Are At Their Lowest In Level In 40 Years And U.S. Doesn’t Have Enough Refinery Capacity

“Diesel inventories are always a bit low in the spring and fall, during agricultural planting and harvesting seasons, but this fall supplies are at their lowest level since 1982, when the government began reporting data on the fuel. The tightest market is in the Northeast, where oil refineries have closed in recent years and where the diesel crunch is complicated by winter demand for heating oil. The two fuels are virtually the same but are taxed differently. An especially cold winter could make the situation worse by increasing the demand for heating oil. In Massachusetts, for example, diesel is selling for more than $5.90 a gallon (about $2.33 more than it did a year earlier). In Texas, it costs $4.73 a gallon.” (“Price of Diesel, Which Powers the Economy, Is Still Climbing,” The New York Times, 11/10/2022)

“[R]efineries have been closing elsewhere. Over the last several years, 5 percent of U.S. refinery capacity, and 6 percent of European refinery capacity, has been shut down…. ‘Because we shut those refineries down, we don’t have enough capacity,’ said Sarah Emerson, the president of ESAI Energy, a consulting firm.” (“Price of Diesel, Which Powers the Economy, Is Still Climbing,” The New York Times, 11/10/2022)

‘The Economic Pain From The Highest Inflation In Four Decades Is Reaching Across All Income Groups,’ With Lower- And Middle-Income Households Feeling The Most Financial Strain

“The economic pain from the highest inflation in four decades is reaching across all income groups … the latest Wall Street Journal poll shows. Lower-income voters are feeling inflation’s impact the most, but the survey shows the burden of rising prices is also weighing more heavily than earlier this year even on wealthier households. Among those with annual household incomes of more than $150,000 up to $200,000, 26% say rising prices are creating major financial strains, nearly double from the level in March.” (“Inflation Strains Voters Across Income Levels Ahead of Midterm Elections,” The Wall Street Journal, 11/07/2022)

“Households earning more than $60,000 up to $100,000 a year—a segment that includes the nation’s 2021 median household income of about $70,800—have seen the biggest movement in the Journal’s 2022 polling for the proportion reporting major financial strains because of inflation. A quarter of those in that income group expressed that level of burden in March, before growing to 39% late last month.” (“Inflation Strains Voters Across Income Levels Ahead of Midterm Elections,” The Wall Street Journal, 11/07/2022)

“People with the lowest incomes are the most likely to report economic suffering related to inflation, with 54% of those having annual household incomes of $60,000 or less saying rising prices are creating major problems for them. That is up from 47% in the Journal’s March poll.” (“Inflation Strains Voters Across Income Levels Ahead of Midterm Elections,” The Wall Street Journal, 11/07/2022)