Oh, yes, the poor are in hog heaven now that inflation is only around double of what it

The Biden campaign workers, posing as journalists, are out in full force: They are telling the poor what great benefit they are getting now that inflation is now down to less than 4%

Here they go:

The poorest Americans are getting the biggest benefit from falling inflation

Inflation’s rapid decline is benefiting America’s lowest earners the most.

In research released on Tuesday, Oxford Economics reported that as of December, year-over-year real wage growth, which is adjusted for inflation, was the strongest for the lowest-income earners at about 3%, compared to just over 1% growth for the highest-income earners.

In particular, big declines in food and energy inflation have helped lower-income Americans.

“The inflation rates experienced by lower-income households have fallen more sharply than for higher earners because low-income households spend a disproportionate share of their incomes on food and energy, which saw sharp disinflation in 2023, and spend a smaller share on discretionary services, which have seen stickier price gains in recent months,”

I wonder what the poor are doing with all their extra money?

The analysts are making month-to-month and year-to-year comparisons, ignoring the rises that have already happened and not been compensated for with higher salaries. 

What voters are comparing, though is what prices were like before Joe Biden took office and what prices are like after Joe Biden took office. That makes the TIPP CPI Index, which makes that comparison, much more useful.

What’s their reading this month? 16.6% higher overall than it was when Joe Biden took office “with no signs of easing.”

According to Yahoo! Finance / GoBankingRates:

Food prices rose 20% in the first two years of Biden and are still rising, not falling, but at a slower rate.

In fact, the average price of all goods rose 13% in the two years starting from April 2021, according to the Bureau of Labor Statistics. The average food price in that same period jumped an incredible 20%.

Crude oil is up, too, following Biden’s pronouncement that he is going to destroy the oil industry. It is up around 80% since he was elected. Crude oil is used in over 6,000 products so it affects almost of everything we use. 

I do get a kick out of the article saying that the poor are having a great benefit from slower inflation because they spend more on necessities and less on discretionary stuff. For the idiot writing the article, that is because they have no money for discretionary stuff. 

The poor have no little to no savings so they don’t benefit from rising CD rates. They are running up their credit card debt. They can’t afford houses or rent but they should appreciate the great achievement that inflation increases are slowing down. 

Here are a few examples of my cost increases for 2024 on non-discretionary costs, when we are told inflation is so great.

Medicare part B: Up around 6%

My prescription plan up 100% from $4.90 per month to $9.90 per month even though Aetna paid less than $1 for 2023 in total for their share of my drug costs

My supplemental health insurance plan up 9%

My last car insurance bill went up 14% because I have a clean record and an excellent credit score. Thank goodness I don’t drive an electric car or have a claim or ticket.

My cable, internet, and home phone bill-up 9%.

And this doesn’t include utilities, food, real estate taxes, or gasoline among other things.

Remember, the government said we only deserved a 3.2% cost of living increase for Social Security for 2024 while highly paid federal workers somehow needed 5.2%. Government bureaucrats are obviously much more important than the old and disabled. 

And yet the public is bragged to that inflation is down to 3.4% in this instant which is still more than double what it was when Biden took office.

So remember people, just appreciate the great work of Biden and Harris. Of course, you will never actually see any policies that have actually slowed inflation down. It was going to slow cyclically and naturally because people hit a brick wall on what they have to spend.

Image: Inflation by Nick Youngson CC BY-SA 3.0 Pix4free