Inflation Continues to Outpace Economists’ Expectations

Since Joe Biden entered the oval office in January of 2021, he has presided over a period of unparallel and unprecedented turmoil and disaster for the United States at every level and aspect of governance. Internationally, Bidens incompetent and weak leadership has emboldened enemies of America on the global stage. After Biden reduced sanctions on Russia that had been imposed by Donald Trump and allowed the eastern European nation to access oil in the North Atlantic (also prevented by Trump), it invaded Ukraine in early 2022, bringing conflict to Europe for the first time since the second world war. After Biden botched the U.S. withdrawal from Afghanistan in late 2021 which resulted in the deaths of 13 American servicemembers, tensions in the middle east have been on the rise, and they boiled over in early October when Hamas invaded Israel and killed over 1,000 innocent civilians.

Domestically, things are even worse. Since Biden implemented reckless spending policies at the start of his presidency that saw trillions of dollars in new spending promoted in massive packages of legislation, inflation has crushed the American working class. In 2022, it peaked, reaching levels not witnessed in 40 years. Interest rates have risen after being at historic lows under President Trump. Now, more than 60% of Americans are living paycheck to paycheck as wages continue to stagnate and the buying power of the dollar has declined. Make no mistake, the decline of the American middle class has been a reality for decades, but the last several years have only exacerbated the process.

While the White House routinely claims that inflation is now under control, many economists contradict that claim. In September 2023, the rate of inflation increased to 3.7%. Economists had projected a 3.6% increase, so the change is modest, but nonetheless the Federal Reserve is once again debating on raising interest rates by the end of the year to help mitigate this issue.