(FiveNation.com)- Americans rang in 2022 with the highest rate of inflation in forty years. By the end of 2021, inflation rose by 6.8 percent, far exceeding the 1.4 percent increase in 2020 and the 2.3 percent increase in 2019.
According to a recent report by the Budget Model project at the University of Pennsylvania’s Wharton School, the average American now spends 7 percent more on household goods while wealthy Americans are spending 6 percent more.
In short, the Biden economy is only exacerbating the very “economic inequality” the Biden administration wants to “fix.”
Researchers at the Wharton School believe this disproportionate increase in household spending is due to the differing manner in which average Americans and wealthy Americans balance their budgets.
By December, gas prices were 59 percent higher than they were just one year ago. Those whose budget requires more gas purchases will therefore spend more than those who don’t rely so heavily on gas purchases.
Really? It takes the Wharton School to figure that out?
Doesn’t it stand to reason if you buy more of an expensive product you will spend more?
The Wharton School concluded that the average US household will have spent about $3,500 more in 2021 for the same level of consumption of goods and services than they did in 2020. They also estimate that lower-income Americans will have spent more of their budget on goods and services and therefore will be impacted more by inflation than rich people.
Again, is this not self-evident?
Inflation is a regressive tax on the poor and those on fixed incomes. You don’t need the Wharton School to explain that the people who will suffer the most under Biden’s failed economy are the very people Biden claims he’s fighting for.
This is precisely why Biden’s enormous, unsustainable welfare spending bill, the inappropriately named “Build Back Better,” will end up making life for the poor even harder.
You don’t need a report from the Wharton School to tell you high inflation and skyrocket prices are bad.