Rising inflation is hitting our wallets hard. Americans are finding it more difficult to make ends meet as the cost of everything skyrockets.
It’s true that average hourly earnings are up. The problem is the cost of goods and services are higher. Recent numbers out of the Bureau of Labor Statistics show hourly compensation (adjusted for inflation) fell 2.7 percent in the second quarter. One of the worst collapses in years. It’s lead to critics of the current White House using the term “Bidenflation”. The administration claims inflation is temporary as the economy emerges from the pandemic. However, the Heritage Foundation's Joel Griffith disagrees.
“There’s no guarantee that the incomes are going to catch up to that. We’ve had this burst that has exceeded income growth,” Griffith said. “If income growth never catches up, that means you are going to see a reduction in your real take-home pay.”
He says the administration needs to lift student loan and eviction moratoriums, as well as cut unemployment bonuses.
“The problem has been the cost of our goods and services are rising as well. That results in your dollar being worth less as the price of goods and services rise, and that in large part is due to governmental action,” Griffith explained.
In addition, he believes the Federal Reserve needs to stop printing more money.