Trump missed chance to call out Harris on inflation

The US Bureau of Labor Statistics reported September 11 that “core” inflation (excluding energy and food prices) rose 3% year-on-year.

However, nobody believes the readout. Most middle-class families say that the same basket of essentials—house, car, food, utilities—costs 10% more than it did a year ago.

Inflation tops the worry list of American voters, with 62% saying it’s a “very big problem,” according to a recent Pew Survey. Too much money chasing too few goods causes inflation, compounded by the Biden administration’s budgetary largesse.

US federal spending would have been about US$5.5 trillion if Biden had kept to the long-term trend. Instead, Biden offered an additional $3 trillion handout in 2021 after the economy was already recovering from the Covid recession and kept total spending 20% higher than the trend line.

That’s where the money came from to chase the goods.

When Vice President Kamala Harris proposed a $6,000 child tax credit, a $25,000 home-buying credit and a $50,000 small business credit at the September 10 debate with Donald Trump, the former president might have accused her of playing Santa Claus with an empty sled.

The more handouts for favored constituencies, the faster prices will rise. Americans are worse off now than they were in 2021, and their situation will decline further if the spending binge continues.

Potato chips might not count for much in a middle-class family’s budget, but they now cost $6.25 for a one-pound bag, compared to just $4.94 when Joe Biden took office in 2021, an increase of 27%.

A loaf of bread costs $1.95, compared to $1.50 in 2021. Medium fries at McDonald’s now cost $4.19, up 134% since 2019, and a McChicken sandwich costs $3.89, a 202% increase over the same period.