The government published new inflation data on Tuesday. The results, unfortunately, are more bad news.
The Wall Street Journal reports that US inflation hit a four-decade high of 8.5 percent in March compared to one year earlier, driven largely by surging food and energy prices, supply chain problems, and increased consumer demand for goods.
“The Labor Department on Tuesday said the consumer-price index—which measures what consumers pay for goods and services—in March rose at its fastest annual pace since December 1981, when it was on a recession-induced downswing after the Federal Reserve aggressively tightened monetary policy,” writes Journal reporter Gwynn Guilford.
Americans hardly need to be told prices are rising sharply. They feel the pain at the pump ($4.32 a gallon for gasoline) and at the grocery store when they pay $4 for a dozen eggs, $3 for a carton of milk, and $18 for a ribeye steak that was $14 a year ago. They feel it when they go out to the local Mexican restaurant and their bill is $20 higher than it was the last time. They feel it when they get a shocking quote for home repairs from a contractor, who apologetically explains those high lumber prices are back.
This is how inflation destroys good people:
Our local Mexican restaurant is owned/run by a wonderful Mexican family. Their son is the same age as ours, and we order from there at least once a week. For the past 5 years a total check for 5 entrees + rice/beans has been $90.
1/7
— Erich Hartmann (@erichhartmann) April 8, 2022
Everyone is feeling the inflation pinch. A recent Wharton School of Business analysis found that the average US household spent $3,500 more in 2021 on goods and services because of inflation.
Inflation is a serious problem with real consequences, which is why it’s so important to understand why it’s happening. Some politicians, such as Sen. Elizabeth Warren, would like you to believe that inflation is caused by corporate greed. But even left-leaning economists from the Obama administration have pointed out Warren’s economics are wildly off base.
You don't need them to tell you what inflation is. You know how bad it is as you try to feed,clothe and shelter your family, pay for gas and other expenses. And you know it is more than they are saying.
This was entirely avoidable and we cannot let reckless policy continue.
— Carol Roth (@caroljsroth) April 12, 2022
The real reason we’re seeing the highest inflation in generations is because of the steps taken by the federal government during the pandemic. In an effort to keep the US economy afloat as politicians shut down the economy, the Federal Reserve began aggressively printing trillions of dollars, swelling the Fed’s balance sheet to nearly $9 trillion in 2021.
“You flooded the system with money,” 60 Minutes journalist Scott Pelley said in a 2021 interview with Federal Reserve Chairman Jerome Powell.
“Yes, we did,” Powell replied. “That’s another way to think about it. We did.”
The mystery of Inflation.
"You flooded the system with money."
"Yes, we did." pic.twitter.com/2ClRf97fg7
— Jon Miltimore (@miltimore79) January 17, 2022
There was never any question the Fed’s action would cause inflation. The only question was how much. Now we know.
You see, you can’t just print vast quantities of money without consequences. There’s a great episode of Common Sense Soapbox that explains why. In the episode, Bob’s father “Ron” explains that money “doesn’t grow on trees.”
“Why not just pwint mo money?” Bob’s baby brother says. “Den Bob can have some mo.”
With food shortages coming, it’s a smart move to order organic, cooked, freeze-dried chicken for long-term storage from Prepper Organics.
Bob’s baby brother is then told why the government can’t just print money to solve its problems.
“Printing more money can be a very bad idea. It results in the money we already have losing its value,” says Seamus. “In the short term, it may not seem like it costs you. But in the long run, it results in all of your money being worth less than it was before. So it’s basically just a hidden tax.”
The federal government took its monetary experiment to new heights during the pandemic, and Americans are now experiencing the results. But in order to solve the problem, Americans need to understand how this inflation arrived.
It’s one thing when Bob’s baby brother doesn’t understand the problem with printing money. Politicians should know better.
Calories = Survival. Buy 364,720 Calories of delicious food today. Heck, buy two.
This article was adapted from an issue of the FEE Daily email newsletter. Click here to sign up and get free-market news and analysis like this in your inbox every weekday.
Jon Miltimore
Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.
Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.
This article was originally published on FEE.org. Read the original article.
Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
JD Rucker
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