Highest Inflation Since Early 1980s: Kill The Bill

Inflation In November Increased 6.8% Year-On-Year, ‘The Fastest Pace Since 1982 And The Sixth Straight Month In Which Inflation Topped 5%’

“The Labor Department said the consumer-price index—which measures what consumers pay for goods and services—rose 6.8% in November from the same month a year ago. That was the fastest pace since 1982 and the sixth straight month in which inflation topped 5%.” (”U.S. Inflation Hit a 39-Year High in November”, The Wall Street Journal, 12/10/2021)

“Prices rose 6.8 percent in November to a nearly 40-year high, compared with a year ago, as inflation continues to squeeze households and businesses nationwide... The increases were driven by broad-based price hikes in most of the categories tracked, similar to October. Indexes for gasoline, shelter, food, used cars and trucks and new vehicles were among the larger contributors. Airline fares also increased. Also, rents have been climbing, influenced by soaring home prices and supply chain issues limiting construction of new homes. Friday’s inflation report showed rent was up 0.4 percent in November compared with the month before.” (“Prices Climbed 6.8% In November Compared With Last Year, Largest Rise In Nearly Four Decades, As Inflation Spreads Through Economy”, The Washington Post, 12/10/2021)

Over The Past Year, Prices For Everyday Life Have Skyrocketed

The price of all items increased 6.8% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 12/10/2021)

• Prices for all items less food and energy increased 4.9% year-on-year, the largest increase since 1991. (Bureau of Labor Statistics, Accessed 12/10/2021)

• Prices for all items less food, shelter, energy, and used cars and trucks increased 4.1% year-on-year, the largest increase since 1992. (Bureau of Labor Statistics, Accessed 12/10/2021)

Food prices increased 6.1% year-on-year, the largest increase since 2008. (Bureau of Labor Statistics, Accessed 12/10/2021)

Food at home (grocery) prices increased 6.4% year-on-year, the largest increase since 2008. (Bureau of Labor Statistics, Accessed 12/10/2021)

Prices for food away from home increased 5.8% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 12/10/2021)

Energy prices increased 33.3% year-on-year, the largest increase since 2005. (Bureau of Labor Statistics, Accessed 12/10/2021)

Gasoline prices increased 58% year-on-year, the largest increase since 1980. (Bureau of Labor Statistics, Accessed 12/10/2021)

Prices for new cars and trucks increased 11.1% year-on-year, the largest increase ever. (Bureau of Labor Statistics, Accessed 12/10/2021)

Prices for housing increased 4.8% year-on-year, the largest increase since 2001. (Bureau of Labor Statistics, Accessed 12/10/2021)

Prices for rent of shelter increased 3.9% year-on-year, the largest increase since 2007. (Bureau of Labor Statistics, Accessed 12/10/2021)

As Inflation Rises, Americans’ Paychecks Are Getting Smaller, With Year-On-Year Real Average Weekly Earnings Decreasing 1.9 Percent

“Real average hourly earnings decreased 1.9 percent, seasonally adjusted, from November 2020 to November 2021. The change in real average hourly earnings combined with no change in the average workweek resulted in a 1.9-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, 12/10/2021)

Sen. Joe Manchin (D-WV): ‘[I Will Not] Support A Package That Risks Hurting American Families Suffering From Historic Inflation… I, For One, Also Won’t Support A Multitrillion-Dollar Bill Without Greater Clarity About Why Congress Chooses To Ignore The Serious Effects Inflation And Debt Have On Our Economy’

SEN. JOE MANCHIN (D-WV): “Nor will I support a package that risks hurting American families suffering from historic inflation. … I, for one, also won’t support a multitrillion-dollar bill without greater clarity about why Congress chooses to ignore the serious effects inflation and debt have on our economy and existing government programs. … Meanwhile, elected leaders continue to ignore exploding inflation, that our national debt continues to grow, and interest payments on the debt will start to rapidly increase when the FED has to start raising interest rates to try to slow down runaway inflation.” (Sen. Manchin, Press Conference, 11/01/2021)

Americans Don’t Believe Democrats’ Reckless Taxing-And-Spending Bill Will Ease Their Top Economic Concern, Inflation

“Americans … don't see Democrats' signature legislation as addressing their top economic concern — inflation…. In the late November NPR/Marist poll, respondents said their top economic concern was inflation, but in this survey, people were pessimistic that either the infrastructure or social safety net bills would help curb it…. By a 46% to 42% margin, respondents said they were pessimistic it would help people like them.” (“A New Poll Finds Major Warning Signs For Biden And Fellow Democrats,” NPR, 12/09/2021)

Sen. Manchin And Economists Agree: Inflation Is ‘Not Transitory’ And ‘The Unknown We’re Facing Today Is Much Greater Than The Need That People Believe In This Aspirational Bill’

SEN. MANCHIN: “We had people at that time saying inflation will be transitory. We had 17 Nobel Laureates saying it’s going to be ‘no problem.’ Well, 17 Nobel Laureates were wrong. And now the Fed is even saying it’s not transitory and they’re hoping it’ll reduce and we don’t know. We will have to wait and see. But the bottom line is; I was concerned then, and I said ‘let’s take a strategic pause.’ I put an op-ed in The Wall Street Journal for that reason and I thought long and hard about that. My reason for saying that, and I still feel strongly about that, is the unknown we’re facing today is much greater than the need that people believe in this aspirational bill that we’re looking at. And we’ve got to make sure we get this right. We just can’t continue to flood the market, as we’ve done.” (The Wall Street Journal CEO Council, 12/7/2021)

SEN. MANCHIN:  “You’re talking about West Virginia, I will say this about inflation, how hard it’s hitting us, our average worker drives 50 miles a day for a job. So we have one of the largest transits in the country. 25 one way. 25 home. With that and food and now with utilities going to be spiking, utility prices, this is real. This is hurting people. So they’re saying ‘well how come these bills aren’t more popular, it’s going to help your state?’ Well, they’re just seeing what’s really been affecting them now.” (The Wall Street Journal CEO Council, 12/7/2021)

SEN. MANCHIN: “Inflation is now more than transitory. We found out it’s not transitory. And on top of that, you have this new strain of Covid they’re very much concerned about. No one knows what effect it’s going to have. And you have inflation on top. So all these things give you cause to pause…. I’m really concerned about the high gas prices…. I heard an awful lot over the Thanksgiving break that prices were high and people are very much upset about that.” (“Manchin Holds Off On Committing To Moving Biden Agenda This Year,” Bloomberg News, 11/29/2021)

SEN. MANCHIN: “By all accounts, the threat posed by record inflation to the American people is not ‘transitory’ and is instead getting worse. From the grocery store to the gas pump, Americans know the inflation tax is real and DC can no longer ignore the economic pain Americans feel every day.” (Sen. Manchin, @Sen_JoeManchin, Twitter, 11/10/2021)

The Fed Chair: The Inflation Consumers Are Struggling With Is Not ‘Transitory’

FEDERAL RESERVE CHAIRMAN JEROME POWELL: “I do think that the threat of persistently higher inflation has grown. ... But clearly, the risk of more persistent inflation has risen.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 11/30/2021)

• POWELL: “So, I think the word transitory has different meanings to different people. To many, it carries a time -- a sense of short lived. We tend to use [the word transitory] to mean that it won’t leave a permanent mark in the form of higher inflation. I think it’s probably a good time to retire that word and try to explain more clearly what we mean.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 11/30/2021)

• POWELL: “I think that if you think about families that are living paycheck to paycheck, they’re feeling high gas prices, soon enough, heating, oil prices, food prices. They’re certainly feeling that. And, you know, this is our job. Our role is to make sure that this higher inflation does not become entrenched.” (U.S. Senate Banking, Housing, and Urban Affairs Committee Hearing, 11/30/2021)

REMINDER: Many Economists Project Democrats’ Reckless Taxing-And-Spending Spree Will Increase Inflation Next Year And Warn That ‘The Risk Of Fueling More Inflation When It Has Reached Record Highs Outweighs The Potential Benefits Of Passing A Big Spending Bill’

“[M]any researchers, including a forecasting firm that Mr. Biden often cites to support the economic benefits of his proposals, say the bill is structured in a way that could add to inflation next year, before prices have had time to cool off. Some economists and lawmakers worry about the timing, arguing that the risk of fueling more inflation when it has reached record highs outweighs the potential benefits of passing a big spending bill that could help to keep prices in check while addressing other social goals. Prices have picked up by 6.2 percent over the past year, the fastest pace in 31 years and far above the Federal Reserve’s inflation target.” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

• “Many economists say it could create a short-term stimulus because the plan is structured to raise money gradually by taxing wealthier Americans, who are less likely to spend each additional dollar they have, and redistribute it quickly to people who earn less and are more likely to spend newfound cash. Because of the difference in timing between when the government spends money and when it starts to bring in more revenue, the bill is expected to pump money into the economy in its early years.” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

• “The roughly $2 trillion tax and spending bill being championed by President Joe Biden will act to push up inflation next year if passed by Congress. That’s according to three senior economists -- Mark Zandi at Moody’s Analytics, Douglas Holtz-Eakin of the American Action Forum and Harvard University professor Doug Elmendorf -- who appeared on a virtual panel sponsored by the National Association for Business Economics on Wednesday.” (“Top Economists See Biden’s Spending Plan Adding to Inflation,” Bloomberg, 11/17/2021)

STEVEN RATTNER, Former Obama Administration Counselor to the Treasury Secretary: “[I]nflation worries are top of voters’ minds. So the [Biden] administration should come clean with voters about the impact of its spending plans on inflation. Build Back Better can be deemed “paid for” only if one embraces budget gimmicks, like assuming that some of the most important initiatives will be allowed to expire in just a few years. The result: a package that front-loads spending while tax revenues arrive only over a decade. The Committee for a Responsible Federal Budget estimates that the plan would likely add $800 billion or more to the deficit over the next five years, exacerbating inflationary pressures.” (Steven Rattner, Op-Ed, “I Warned the Democrats About Inflation,” The New York Times, 11/16/2021)

Even an analysis by Mark Zandi, chief economist of Moody’s Analytics, and Democrats’ favorite economist, found the implementation of Democrats’ multitrillion dollar taxing and spending bill would increase inflation annual growth from 3.8 to 4.0 in 2022. (“Macroeconomic Consequences of the Infrastructure Investment and Jobs Act & Build Back Better Framework,” Moody’s Analytics, 11/04/2021)

• “Moody’s Analytics — the firm that the White House typically cites when arguing in favor of its legislation — estimates that the government will spend $163 billion more on the package than it takes in next year. And the redistribution could make the money more potent as economic stimulus.” (“The White House Says Its Plans Will Slow Inflation. The Big Question Is: When?,” The New York Times, 11/11/2021)

With Democrats’ Reckless Taxing-And-Spending Plan Projected To Add $800 Billion To The Deficit Over The Next Five Years, Sen. Manchin States The Obvious, ‘I Don’t Know How You Control Inflation When There’s The First Year Of Spending Is Going To Be Quite Large’

SEN. MANCHIN: “I don’t know how you control inflation when there’s the first year of spending is going to be quite large. And that’s an awful lot more of federal dollars going into a time when we have uncertainty and inflation now.” (Punchbowl PM, 12/06/2021)

The Congressional Budget Office Confirms That Democrats’ Reckless Taxing-And-Spending Bill Is NOT Paid For, And Will Add $800 Billion To The Deficit Over The Next Five Years

“CBO estimates that enacting this legislation would result in a net increase in the deficit totaling $367 billion over the 2022-2031 period, not counting any additional revenue that may be generated by additional funding for tax enforcement.” (“Summary of Cost Estimate for H.R. 5376, the Build Back Better Act,” Congressional Budget Office, 11/18/2021)

The Congressional Budget Office estimates the Democrats’ reckless taxing and spending bill would add nearly $800 billion to the deficit over the next five years. (“Summary of Cost Estimate for H.R. 5376, the Build Back Better Act,” Congressional Budget Office, 11/18/2021)

This is all in addition to the $528 billion the Democrats’ spring stimulus bill will already add to the deficit in fiscal year 2022. (Congressional Budget Office, Accessed 11/19/2021)