Arizona Rep. David Schweikert shared the shocking July Consumer Price Index (CPI) report of the U.S. Bureau of Labor Statistics that utterly shatters any narrative suggesting that the economy has recovered and inflation is abating. Citing the Bureau, Schweikert’s office noted that consumer prices are up 0.2% month-over-month and 2.9% compared to 2023. This requires the average family to spend $13,138 more per year to maintain the same lifestyle they enjoyed in 2021, while real average weekly earnings dropped 3.9%.
Most damningly, per the report, Cumulative CPI inflation (not seasonally adjusted) is up a devastating 20.2% with the American people effectively losing one-fifth of their buying power since President Joe Biden and Vice President Kamala Harris took power in 2021.
It's no wonder that consumers have declining confidence in President Biden and Vice President Harris to improve their financial standing after 3.5 years of economic calamity.
— Joint Economic Committee Republicans (@JECRepublicans) August 14, 2024
In several states, the cumulative inflation is significantly higher still. In the states of Arizona, Utah, Colorado, and Nevada, all key states in the 2024 Presidential election, cumulative inflation stands at 21.8%, and cumulative additional costs are the highest in the nation with Colorado’s the worst at $36,703 per average household. Colorado is exceeded only by Washington, D.C. where the cost increase is a staggering $41,313 per household. Arizonans have spent $32,625 more due to cumulative inflation.
Schweikert said in the statement:
“Though hardworking Americans received positive news this morning that inflation continued to slow in July, overall prices are still up more than 20% and real average weekly earnings are down 3.9% since the beginning of the Biden-Harris administration.
From Day One, this administration’s radical agenda has been a rubber stamp for growth-slowing tax hikes and runaway inflationary spending that have dramatically reduced Americans’ purchasing power and standard of living. It’s no wonder that consumers have declining confidence in President Biden and Vice President Harris to improve their financial standing after three-and-a-half years of economic calamity.”
The congressman’s office summarized the lengthy report, finding that food prices have increased 22% since January and energy costs have skyrocketed over 40%.
According to the JEC State Inflation Tracker, the average U.S. household was forced to spend $1,095 more in July, or $13,138 more per year, to maintain the same consumption basket they had in January 2021.
Headline CPI-U inflation increased 0.2% m/m and 2.9% y/y.
Core CPI-U inflation increased 0.2% m/m and 3.2% y/y.
Since January 2021:
Headline CPI-U inflation has increased 20.2%.
Core CPI-U inflation has increased 18.3%.
The food price index has increased 22%.
The energy price index has increased 40.2%.
Real average weekly earnings for all employees have decreased by 3.9%.
On the national inflation tracker, measuring the additional monthly cost for the average U.S. household since January 2021, Arizona placed 11th, well above the national average. The five states that enjoyed the smallest cost increases due to inflation were Arkansas, Oklahoma, Maine, West Virginia, and Louisiana.
On August 2, the Joint Economic Committee Republicans also reported that per the July jobs report, only 114,000 new jobs were added to the economy, well short of the 175,000 projected, and unemployment has increased to 4.3%, further indicating a weakening economy. A week prior, in a fiery speech to a largely empty House, Schweikert sarcastically congratulated Congress for the gross national debt passing $35 trillion.
Our gross national debt passed $35 trillion on Monday.
The math isn’t partisan.
It’s not Republican, nor is it Democrat.
Doing the math is MORAL. We need to be willing to have hard conversations to save future generations. And it starts by putting batteries in the calculator. pic.twitter.com/ORAryaBqKr
A report released by the American Farm Bureau Federation has revealed that for the third year in a row, the national average consumer cost for putting on a typical Fourth of July cookout has increased. This year the average given for a conservative celebration feeding 10 is approximately $71.22. The increase of about 5% from 2023 would seem minor if it were not merely the latest increment of the 30% jump from 2019 prices enjoyed during the Trump administration.
The report contradicts a White House release from June 20 that claimed, “grocery inflation is, in fact, way down.” In a survey conducted by the Farm Bureau, volunteers across the country registered a record high result since the survey began in 2013. The volunteers priced out the constituent components of cheeseburgers, chicken breasts, pork chops, homemade potato salad, strawberries, and ice cream, with other common accompaniments.
AFBF Chief Economist Roger Cryan laid it out in a statement,
“Higher prices at the grocery store reflect a number of challenges facing America’s families. Lower availability of some cookout staples and inflation are hitting people in their wallets. Farmers are also feeling the effects of high prices. They’re price takers, not price makers. Their share of the retail food dollar is just 15%, but they still pay elevated fuel, fertilizer and other supply prices.”
The Bureau reported the price increases broken down by individual purchases:
2 pounds of ground beef, $12.77 (+11%)
2 pounds of chicken breasts, $7.83 (-4%)
3 pounds of pork chops, $15.49 (+8%)
1 pound of cheese, $3.57 (+1%)
1 package of hamburger buns, $2.41 (+7%)
2 ½ pounds of homemade potato salad, $3.32 (-4%)
32 ounces of pork and beans, $2.49 (+2%)
16 ounces of potato chips, $4.90 (+8%)
13-ounce package of chocolate chip cookies, $3.99 (+2%)
½ gallon of ice cream, $5.65 (+7%)
2 pints of strawberries, $4.61 (+1%)
2 ½ quarts of lemonade, $4.19 (+12%)
While a record high, the report detailed that costs have not exceeded the all-time high in 2022 crediting the adaptability of the American farmer. AFBF wrote, “Our volunteer shoppers had their most expensive Fourth of July grocery bill in the history of the survey this year. However, when adjusted for the high inflation rates plaguing the United States in recent years, the real value of their Independence Day party has not surpassed the previous record set in 2022. Though faced with disease outbreaks, inventory shortages and operating challenges, farmers and ranchers have adapted to increased demand across the world for U.S. products, providing safe, affordable food for your Independence Day celebration and every other day, showcasing the resilience of the American food system.”
In an interview with Yahoo Finance’s Jennifer Schonberger, U.S. Treasury Secretary Janet Yellen made the Biden administration’s case as to why food prices have not noticeably declined despite alleged improvements in the economy. She essentially blamed increased labor costs and grocery store profit margins claiming, “I think largely reflects cost increases including labor cost increases that um firms, um grocery firms have experienced, although there may be some increases in margins.”
On June 20, the Biden White House put out a report based on the most recent Consumer Price Index data alleging that not only “some grocery prices have fallen,” but that “wage growth has been strong, grocery purchasing power is up.”
A survey from Intuit Credit Karma reported by CNBC on June 17 seemed to align with the Farm Bureau’s assessment with 80% of Americans polled stating a noticeable increase in the cost of groceries with many having to skip necessities like rent or mortgage bills to afford food. They wrote, “That includes 28% who sacrificed other needs like rent or bills to pay for groceries, and 27% who occasionally skipped meals. Additionally, 18% have either applied for or considered applying for food stamps, while 15% rely on or have considered turning to food banks.”
Startlingly though, 53% of those asked told pollsters that they “earn too much to qualify” for food stamps or any other government assistance and despite their earnings are still struggling to make ends meet.
In a statement, AFBF President Zippy Duvall said, “As we celebrate this nation’s independence, we also celebrate America’s food independence. And while all families in America are paying more for food than before, we still have one of the most affordable food supplies in the world. In the United States, we are blessed with the tools to grow the food, fiber and renewable fuel to meet the needs of every family across the country.”
Duvall stressed the importance of Congress passing legislation to better support agriculture to ensure the nation remains dominant in the field. “The success of America’s farmers is due in part to partnerships in research, conservation and farm safety net programs that are made possible through a strong farm bill. It’s crucial that as we celebrate the holiday we also urge members of Congress to return to Washington and pass a new, modernized five-year farm bill. We cannot afford more delays and short-term extensions. Farmers, and every family in America, are relying on them to get the job done to ensure America continues to lead the world in agriculture.”
Congress’s Joint Economic Committee (JEC) warned that the Biden administration’s economic policies have caused an unsustainable debt crisis and historic inflation.
This assessment was announced formally earlier this week by JEC Vice Chairman and Congressman for Arizona’s first district, David Schweikert, through the 160-page Republican Response to the Council of Economic Advisers’ 2024 Economic Report of the President.
Schweikert stated in a press release that 2024 serves as a “critical juncture” for the nation’s fiscal health, one that transcends political parties.
“The challenge before us is neither Republican nor Democrat — it is our moral obligation to ensure American families aren’t left behind. Congress holds the keys to determine which path we choose,” said Schweikert. “We can either behave like adults and choose the path of fiscal responsibility or continue our partisan gamesmanship that will put the American dream further out of reach for future generations.”
Schweikert said that the problems and proposed solutions put forth by the JEC report were inherently bipartisan, focusing on common-ground economy boosters like a healthier population and secure social safety net programs.
“Those of us on the Republican side, we built a report that offered actual moral, great economic solutions instead of the election year rhetoric.”
— Joint Economic Committee Republicans (@JECRepublicans) June 21, 2024
The JEC assessed that the Biden administration’s demand-side policies financed by increased borrowing have placed unsustainable pressure on constrained supply. As a result, JEC predicted that debt-to-GDP would grow from 99 percent to 116 percent by 2034, with interest costs rising. JEC noted that the labor force participation rates haven’t recovered to prepandemic levels; historic mortgage payments for new homebuyers, the highest in 30 years; constraints on budding American industries due to new restrictions on trade; and the cost of clean energy subsidies amounting to $1.2 trillion over 10 years, despite emissions from electricity production declining.
Further exacerbation of the economy comes from an aging population, declining fertility rates, and decreased prime-age labor force participation among men, per the JEC. The aging population is anticipated to drive Social Security spending to 6 percent of GDP by 2035, an increase from the present 5.2 percent and the 1970s at 3.1 percent, though no major expansions have occurred in over 20 years. The JEC reported that one in nine prime-age men remain out of the labor force; if just 25 percent of those entered, the economy would grow by $215 billion.
JEC disputed the Biden administration’s belief that increased taxes of wealthier individuals would amount to their desired revenue, a dwarfed amount of around 1.1 to 2 percent of GDP compared to future deficits. JEC stressed that only reduction in spending would improve fiscal consolidation.
Another demographic with an outsized impact on the economy, according to the JEC, is the rapid increase in obesity. Excess medical expenditures are anticipated to amount to over $9 trillion, as well as federal government spending of over $4 trillion within the next decade. Labor productivity and supply reductions impacted by obesity are projected to cost nearly $3 trillion and $12 trillion, respectively.
As for a positive solution to the nation’s current and looming fiscal woes, JEC indicated that artificial intelligence could grow the economy and improve government efficiency.
JEC also issued a lengthy assessment of the Congressional Budget Office’s revised budget and economic projections for the next decade. This included a $400 billion increase in projected FY2024 deficit, with about 80 percent of the increase coming from President Joe Biden’s student loan forgiveness, the Federal Deposit Insurance Corporation failing to recover payments from 2023 bank failures quickly, new legislation, and higher than expected Medicaid outlays.
CBO recently released its updated budget and economic projections for 2024-2034 from the original forecast in February 2024. Below are some key takeaways from the revised estimates 🧵
— Joint Economic Committee Republicans (@JECRepublicans) June 19, 2024
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One Arizona Republican lawmaker is speaking out against Democrats’ economic policies.
Senate President Pro Tempore T.J. Shope recently addressed the economic pains being felt by his constituents – as well as many Arizonans around the state. He singled out President Joe Biden and attributed the support of Democrat state legislators for aiding in the economic ailments of everyday Americans.
Shope wrote, “Reckless policies implemented by Joe Biden and supported by Democrat lawmakers have caused the inflation nightmare currently costing you more of your hard earned dollars. Americans are now paying nearly $1,100 more each month compared with just three years ago. If you were hoping to buy a house soon, don’t expect relief in the near future, as 30- year mortgage rates are sitting above 7%, the highest level in 20 years, and the feds indicated this week they may not cut rates in 2024 while inflation remains high.”
The state senator added, “Gas prices are surpassing $4 per gallon in Arizona, when they were just $2.50 at this time four years ago. Our citizens are spending 11% of their disposable income on food, which is the highest level in more than three decades. More and more working class citizens are relying on credit cards to cope with rising costs, as one in three consumers are currently maxing them out. Senate Republicans remain focused on easing these financial burdens, despite the out of touch priorities Biden, Hobbs, and Democrat lawmakers are pushing.”
A recent Gallup Economy and Personal Finance Poll showed that only 38% of respondents had “a great deal” or “a fair amount” of President Biden “to do or recommend the right thing for the economy.” This approval rating (or lack thereof) for Biden has plummeted since the start of his presidency in 2021, when he began his term at 57% for this specific question. Just 34% of independents have confidence in the 46th President’s ability to turn the economy around, according to the poll.
During a recent campaign appearance, former President Donald J. Trump again reiterated that he would reignite the American economy if voters entrusted him with the keys to 1600 Pennsylvania Avenue. He said, “Upon taking office, I will impose an immediate moratorium on all new spending, grants, and giveaways under Joe Biden’s mammoth socialist bills like the so-called Inflation Reduction Act. We are going to stop the Biden spending spree. We are going to halt his inflation death spiral. We are going to terminate his Green New Scam. We are going to end his war on American energy. And we are going to drill, baby, drill.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Americans consistently voice their disapproval on the state of the economy in recent polls, largely because of the stratosphericcost of living. But apologists for the Biden administration point to the low unemployment rate of 3.9% in April as proof of the economy’s strength.
Yet this is a hollow talking point since the real unemployment rate is likely between 6.5 and 7.7%.
The unemployment rate is the percentage of people in the labor force who don’t have a job. That means the unemployment rate can change if either the number of people unemployed or the total size of the labor force changes.
The shocking reality is that somewhere between 4.7 million and 7 million people who aren’t working today are not included when calculating the unemployment rate. That artificially reduces the figure.
The reason these millions of Americans are uncounted began with the events of 2020.
When the government instituted draconian lockdowns across most of the economy in response to the COVID-19 outbreak, over 17 million people became unemployed, and another 8 million people immediately left the labor force.
As the economy slowly reopened across the country, millions of people began returning to work. That, of course, drove down the unemployment rate by reducing the number of unemployed people. Some of those who left the labor force also returned and eventually found jobs, further reducing the unemployment rate.
But there were also millions who left the labor market entirely and never returned. As such, they were no longer counted among the unemployed nor in the labor force. This pushed the unemployment rate down even more.
If those millions of people were to suddenly look for work again, it would greatly increase the labor force, but it would also increase the unemployment rate, at least until those job-seekers found work.
Official government data point to just how many workers are missing from the labor market today. Several metrics show a large gap between their current reading and their pre-pandemic trends. These include the employment level, the number of non-farm payrolls, the employment-to-population ratio and those not in the labor force.
The gap is between 4.7 million and 7 million people, all of whom are not working but are excluded from the unemployment rolls. If they were still counted as jobless members of the labor force, the unemployment rate would jump to between 6.5% and 7.7%.
The latter figure is almost twice the official unemployment rate. Even 6.5% would represent a significant spike.
Looking only at the unemployment rate can give a distorted view of the labor market. If unemployed people are looking for work and then get jobs, that causes the unemployment rate to fall. But, if those same people give up looking for work and leave the labor force, it has precisely the same effect on this metric.
Using additional data provides a better gauge of the labor market’s health and workers’ jobs satisfaction. Real, or inflation-adjusted, earnings are a good example—and they have plummeted.
While the average American worker’s weekly paycheck has increased $147 from January 2021 through April 2024, those earnings buy $47 less because prices have risen so much faster than incomes.
This has caused many Americans to work extra hours or pick up a second job. Among renters, more than one-fifth of them have taken on another job in order to pay their rent on time in the last few months.
That’s noteworthy because whenever someone is hired, whether it’s that person’s first or fourth job, it’s still counted as an additional payroll in the government’s monthly job statistics. With millions of Americans picking up additional work to try and make ends meet for their families, the number of jobs has risen much faster than the number of people employed.
Simply touting a low unemployment rate provides a view of the labor market that is at best incomplete and at worst deceptive. A comprehensive view of economic conditions for the working class shows why they are so unhappy: inflation has made it impossible for them to get ahead, no matter how many jobs they work.
E.J. Antoni is a contributor to the Daily Caller News Foundation, public finance economist and the Richard F. Aster Fellow at The Heritage Foundation, and a senior fellow at the Committee to Unleash Prosperity.
