Former Chief of Staff to Joe Biden finally acknowledges: Inflation is severely affecting us

Former White House Chief of Staff Ron Klain deserves credit for his honesty when he acknowledged that inflation is a major issue affecting voters for the past three years.

In a recent interview on MSNBC, Klain admitted that while inflation has eased somewhat, prices, especially for gasoline, remain high, and people are feeling the financial pressure.

Referring to the situation as a “pinch” underplays the severity of the economic challenges facing Americans under the Biden administration.

The most significant concern in the Biden economy is the decrease in purchasing power for households, leading to a majority of Americans feeling worse off compared to four years ago.

Recent data from the Census Bureau shows that the median-income household has lost nearly $2,100 in annual purchasing power.

Further data from the Bureau of Labor Statistics indicates that weekly real earnings have declined by approximately $2,000 since Donald Trump’s presidency.

While wages are beginning to rise faster than inflation, there is still a negative gap that persists more than three years into Joe Biden’s term.

In contrast, during the Trump administration, middle-class family incomes saw an increase of over $5,800 annually.

Despite the economic challenges posed by COVID lockdowns, there was notable improvement in household incomes during the previous administration.

However, progress on addressing inflation has stagnated, with gas prices soaring once again, adding to the financial burden on the middle class.

For instance, the average gas price has risen from $2.49 to $3.58 per gallon, representing a significant increase in the cost of filling up the tank for motorists.

Commodity prices have also surged, impacting essential items such as copper, corn, and gold.

Moreover, mortgage payments have significantly risen, with average mortgage rates increasing from around 3% to 6.5%, resulting in nearly a 50% rise in monthly payments in just four years.

As a result, the dream of homeownership is becoming less attainable for many Americans.

Official Consumer Price Index numbers indicate an 18% increase in prices since the previous administration, but this doesn’t account for “shrinkflation” where consumers are paying more for less.

President Biden attributes inflation to corporate greed and proposes raising business taxes to reduce profits, failing to acknowledge the negative consequences this could have on prices and consumers.

The disconnect between the reality on Main Street and the optimism in Washington, DC, underscores the lack of benefits trickling down to the middle class from government spending.

As inflation persists and paychecks shrink, Americans are becoming increasingly worried and frustrated, reminiscent of the economic challenges faced during the Carter administration in the 1980s.

Ron Klain’s warning about the economic challenges facing the Biden administration is a clear indication that the current approach may not be working effectively for the American people.

History has shown that when Americans feel worse off economically, it can have significant political consequences, as seen in past elections.

Stephen Moore, a senior fellow at the Heritage Foundation and co-founder of the Committee to Unleash Prosperity, offers his insights on the current economic situation and its implications for the Biden administration.