Long into next year, Americans will undoubtedly see rising prices in about everything from gas to food. This is now turning a smoldering economic problem into a significant political issue.
The country’s economic speedy resuscitation this summer resulted in enormous price increases for transportation services, secondhand vehicles, and other items, which were previously dismissed as a passing fad.
However, as clogged supply chains, availability of labor, and persistent consumer demand force costs even higher, the inflation rise now seems to be on course to last well into next year, when the midterms will determine who controls Congress.
According to Jason Furman (a prominent economic adviser to former President Obama, who is connected to the Biden government), “more inflation is probably anticipated through at least next year. Once you have two years of rising inflation in a row, it may gain pace on its own.”
— New York Post (@nypost) October 14, 2021
This scenario increased Democrats’ concerns about the political impact; the government has hurried to address some of the core issues, despite officials’ assertions there’s nothing they can do on their own to resolve them.
As citizens feel the pinch of rising costs on common products and services, the longer difficulties persist, the more politically dangerous they become for congressional Democrats. This is especially true for Democrats seeking re-election and expecting to keep their narrow House and Senate majorities.
The evidence that greater prices will continue longer than planned is mounting. Consumption prices jumped 5.4 percent last month from a year ago, according to data published Wednesday.
This is the highest increase in 13 years. According to the report, prices rose 0.4 percent from August to September, a higher-than-expected increase that was greater than the previous month.
Consumer Prices are at Their Peak
The Reserve Bank of York reported on Monday that consumers’ short-and-intermediate inflationary pressures have reached their top levels since the survey began in 2013.
In its economic outlook during the week, the International Monetary Fund underlined “considerable uncertainty” about where prices are headed, warning the risk is it will be worse than expected.
Pete Buttigieg is completely unqualified to handle the supply chain crisis.
The only reason he's the Secretary of Transportation is because he endorsed Joe Biden.
Even Pete knows it.https://t.co/uQro8z9SyZ
— Tom Cotton (@TomCottonAR) October 13, 2021
At an International Institute Finance event on Wednesday, former Treasury Secretary Larry Summers (who was warned of an inflation crisis for months) said, “I’m pretty frightened. I believe we are facing a really difficult position in terms of inflation.”
President Biden and Democrat legislators have been hammered by Republicans on the topic and the point looks to be getting through. According to a Politico-Morning Consult poll released this week, nearly three-quarters of Americans have seen or read something about oil and gas prices reaching their highest point since 2014.
As per a Pew Research Center study of more than 10,000 adults conducted in late September, 63 percent of people are very concerned about the rise in food and consumer products costs.
Another 30% stated they were worried in some way. Republican Sen. Marco Rubio tweeted on Thursday, “This will be a season of high gas prices, scarcity, and hyperinflation because far-left loons run our country.”