Larry Kudlow: This inflation scourge has given average working folks a 3.4% wage cut over the past year

It’s bad enough that President Joe Biden held a concert celebrating James Taylor yesterday after a terrible consumer inflation report With prices rising for food and groceries, electricity, natural gas, cars, medical care — pretty much everything but gasoline — a drop in gasoline — a nearly 1,300-point stock market selloff and 30-year mortgage rates of about 7%. up, which reduced the housing sector.

If all that wasn’t embarrassing enough, her new word salad in Detroit today sounded like this. Check it out for yourselves:

Biden: “We started with the American rescue plan. It’s taken us from economic crisis to economic revival.”

Wait a second, Mr President. Objective observers using actual factoids may put it a little differently.

Wholesale inflation eases in August, but prices remain at decade high

President Joe Biden holds his face mask and waves as he exits Air Force One at Capital Region International Airport on Tuesday, October 5, 2021 in Lansing, Mich. (AP Photo/Evan Vucci) (AP Photo/Ivan Vucci/AP Newsroom)

Namely, you inherited a low-inflation boom with economic growth of 6.5% and in a little over a year, you turned it into a high-inflation bust with two consecutive negative growth quarters, the potential for a deep recession. And your “American rescue plan” with all its extra spending has triggered a relentless inflation that is forcing the Federal Reserve to aggressively tighten the monetary screws on the economy.

You generated $5 trillion in new deficits, according to a responsible federal budget committee. You’ve ended up permitting and leasing fossil-fuels and you’ve implemented at least $200 billion worth of new regulations, which is nearly 40 times the amount of actions Donald Trump put in place — a bunch of actions that have literally taken the business out of business. The enterprise is strangled.

Meanwhile, your inflation woes, in addition to your tax and regulatory prosperity killers, have given average working people a 3.4% pay cut in the past year. Around the kitchen table, families are talking about a 16% hike in electricity prices, a 33% jump in natural gas services and an 11.4% jump in groceries and families still on store shelves with baby formula. Looking for.

Even with the recent decline petrol prices Partially driven by your election year oil sales from our Strategic Petroleum Reserves, which certainly put our energy and natural security at risk, gasoline is still up 26% from a year ago. National gas is about $3.70 today. It was $2.40 in January 2021.

By the way, don’t take it from me alone about the inflation slowdown. Listen to top Democratic economists like Jason Furman and Larry Summers and those guys are expecting 6.5% unemployment over the next two years. Right now, it’s 3.5%. Therefore, the great middle class is heading for even greater suffering as a result of your policies.

The fact is, you were given an economic revival by your predecessor Donald Trump and in short, you turned it into a crisis, a real crisis.

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This stagflation epidemic that you imposed on us can be fixed with a return to free markets, free enterprise and supply-side policies to lower tax rates and slash rules. Reopen fossil fuel spigots. Instill confidence in what King Dollar can buy in terms of home goods and services.

We can stop expanding welfare aid that encourages non-working and replace it with fiscal policies that pay it, after tax, to work and produce. Yes, the horseman is coming. This is the last way, but even the most well-trained cavalry will probably need a few years to recover Biden jumbled up.

This article is adapted from Larry Kudlow’s opening remarks on the September 14, 2022 edition of “Kudlow.”

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