By: Ted Dabrowski
Inflation has risen by 6.8% in the last 12 months to the highest level in 39 years, the result of trillions of dollars from the Fed’s printing press, trillions more in spending by the Biden administration, as well as supply chain issues.
Prices of food for the home are up 6.4% over the last year, while food away from home is up 5.8%. Gasoline is up 58% in the last 12 months. Used car and truck prices, 31%. Apparel, 5%. And electricity is up 6.5% while utility gas service prices are up 25%. For many, those costs increases will far outpace any wage increases they get.
Politicians initially said inflation would be short-term, but the increases have been higher and they’ve lasted longer than originally expected, meaning officials can no longer maintain the charade.
Here in Illinois, the inflation “tax” is piling on to the already heavy burden Illinoisans face: the country’s second-highest property taxes; the second-highest gas taxes; and overall taxes so high that Kiplinger calls Illinois the nation’s least tax-friendly state for middle-class families.
Local lawmakers could provide relief by bringing down taxes, but they’ve done nothing. In fact, lawmakers have been doing the opposite by boosting spending and costs.
Worse, Illinois politicians were some of the primary cheerleaders of the federal bailouts and spending that got the country into this inflation mess in the first place.
Thanks to them, Illinoisans will be forced to make harder choices than most when they prepare for the holidays. Will it be pasta or a roast for dinner? Is there enough gas money to visit family? Turn up the heat or grab an extra blanket?
Read more about Illinois’ crises:
- Gov. Pritzker can’t take credit for Illinois’ improved budget projections when it’s the feds that bailed the state out
- Jump in inflation bails out Illinois politicians, punishes ordinary residents
- Gov. Pritzker: The man with two budget faces
- New Kiplinger report crowns Illinois as nation’s “Least Tax-Friendly State” for middle-class families
Old enough to have been impacted by the Jimmy Carter years.
Smart enough to remember it took Ronald Reagan to get us out of the
1970’s malaise
Jimmy Carter still got 40% of the vote in 1980. Democrats looked at that guy, and the disaster that was his administration, and said “Sure, give me more of that”. I have zero faith.
I was just in college and what Reagan and Volcker had to do (and it was the right thing) altered the trajectory of my life – seriously. I fear though that the current regime of Yellen and Powell do not take the inflation seriously, that accommodating blowout Federal spending is much more important. Little people be damned.
I just remember him babbling on the Blago tapes, Can I be Senator? Or Attorney General? He was just a rich guy with nothing to do. I don’t think he is the financial whiz of the Pritzker family. He inherited tons of money and it wasn’t that hard to add to it. But, you have to give him credit for dumb luck and Teflon. He lucked (and bought) into Blago’s job and no scandals seem to stick to him.
Throw in the toilets and he should have been un-electable. But he wasn’t … the power of unions and the single-mindedness of lifelong Democrats gave us this great gift, JB.
I expect Jabba will soon introduce new policies to give public pension employees the option of taking the greater of inflation or their current 3% bump. It won’t require new legislation as this will be implemented through executive order due to Covid and the common cold.
I hope you’re correct. The purchasing power of these pensions have been diminished because of inflation. Time to increase the compounding percentage.
Slowly but surely noted economists are fessing up that Powell blew it on inflation, and the Inflation Beast is out. Look for COMPOUNDING inflation!!!
Dark, cold, cruel days ahead for America. People, please hunker down – it’s coming!
Im grateful that my wife and I earn enough that this inflation and high taxes isnt hurting us to badly,however,for the dolts that voted for Biden and continually elect the likes of Lightfoot,Putzker and Foxx,heres a big BOOHOO,hope you enjoy your ramen noodles for dinner cuz you deserve it,thanx again for voting for tax and spend Democrats
6.8%. So this means everyone can expect a 6.8% raise (sarcasm).
COLA rides again
The over/under for end-of-year inflation rate is 7.1%. Bet accordingly.