October Inflation Spikes 6.2% Driven by Energy and Food Price Increases

Inflation continues to rise as Americans have to pay more for gas and groceries. Leftist economists excuse it as a side effect of fighting for social and climate justice.

Summary

Inflation jumped to a 30-year high in October, with consumer prices rising 6.2% compared to last October.

• The increasing inflation comes despite months of reassurances from experts that inflation was “transitory” and would quickly subside.
• The October spike was driven largely by increases in energy and food prices.
• Housing prices are feared to be the next target of increased prices due to inflation as the Biden administration “has vowed to address the home affordability crisis.”
• The Atlanta metropolitan area was hit hardest by inflation, showing a 7.9% increase in consumer prices year-over-year.

• Vox interviewed an economist who admitted that while inflation is bad, she argued the stimulus bills were a net-positive because “it really made a big difference to people’s lives” at a time when prices were spiking.*
• CNN offered a warning to President Biden, saying inflation is his next political hurdle as the higher prices are affecting everyone’s pocketbook.
• According to Axios, West Virginia Sen. Joe Manchin, a thorn in Biden’s and progressive’s side, again urged Democrats to stop deliberation on Build Back Better (BBB), the $1.75 trillion social spending bill after the October inflation numbers were reported.**

• Newsmax also reported on Manchin’s intentions to delay BBB, quoting the Senator: “the threat posed by record inflation to the American people is not ‘transitory’.”
• Breitbart’s report on the October inflation numbers noted that price increases earlier in the year were focused on specific sectors and services as opposed to recently, in which costs are increasing across the board.
• Fox Business reported on the long-term effects of inflation: the IRS’ tax brackets have to be adjusted upwards for 2022 due to the price increases.

Author’s Take

*Vox’s interview was classic apologia for leftist thinking and modern monetary theory: That government spending (which they don’t even consider could have been a primary driver for inflation) via increased social programs and climate change agenda, is the way out of the current economic mess. The interviewee even admits that if inflation were to stay above 2%, it’s worth it as long BBB is passed. She offers a near verbatim threat of “so you’re against kids?” argument.

**Machin understands what an economist doesn’t: Massive and sudden increases in government spending contributed to inflation, and it won’t solve it.

The flaccid response from elites like this economist and institutions we’re supposed to trust shows how they have no real understanding or concern of the trials and tribulations of the folks in flyover country. Just days ago, journalists mocked a large foster family for buying more than a few gallons of milk per week. More and more, the elites in academia and journalism are disconnected from the reality of life for the vast majority of Americans.

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© Dallas Gerber, 2021