Some of us remember the last major battle with inflation in the last year of President Jimmy Carter. It was devastating on families by making everything more expensive, from gasoline to buying a home.
It looks like the current battle of inflation is just like the old one. This is from CNBC:
Housing, transportation and food are generally the three biggest expense categories for the average American household each year, according to the Consumer Expenditures Survey.
In 2020, housing costs (like rent and utilities) represented about 35% of the average person’s budget. Transportation costs (like vehicle purchases and gasoline) ate up 16% of the budget, and food expenses (groceries and restaurants) another 12%.
The three categories are seeing many cost components increase at their fastest pace in many years.
For example, the “food at home” index (i.e., groceries) rose 6.4% over the past year, the largest 12-month increase since December 2008. Some subcategories like meat, poultry, fish, eggs and beef grew by double digits.
Gasoline prices are also up 58.1%, their largest 12-month increase since April 1980. Household energy costs are up 12.2%. Motor vehicle insurance is up 5.7%.
All that matters is up. This is why the voters are so angry at President Biden.
What chance is there that inflation and food prices will drop by election day? Not good. Are the voters going to punish Democrats in the midterms? I think so.
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