by Donna Martinez
Senior Writer and Editor, John Locke Foundation
Inflation is essentially a tax on daily life. The latest inflation data from the Labor Department is devastating.
Inflation across a broad swath of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday.
The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago. That compared to the 5.9% Dow Jones estimate.
On a monthly basis, the CPI increased 0.9% against the 0.6% estimate.
Don’t listen when the president and his administration try to convince you that he won’t raise taxes on anyone making $400,000 or less per year. That’s malarkey, as Locke’s Brian Balfour recently pointed out.
But as anyone buying gas, groceries, or virtually anything else could tell you, we are already paying a steep tax: the inflation tax.
Price inflation eats away at the purchasing power of your dollars, the same amount of money now buys you less. In the same way that an income tax reduces your purchasing power by reducing your take-home pay, inflation reduces your purchasing power by devaluing the dollars you have.
Elections have consequences. This is the reality of the Biden policies: rampant inflation that leaves you with less of what you earn.