Tag Archive for: inflation

The Stock Market Officially Collapses Into Bear Market Territory

The stock market closed out a week of intense losses with the Dow Jones falling more than 750 points Friday, entering bear market territory amid a wave of investor fears.

At time of writing, the index had, at its lowest point, fallen more than 2.7% during the day to around 29,300 points, with the Nasdaq and S&P 500 down by 2.7% and 2.64% respectively at time of writing. With the Dow Jones officially falling more than 20% from its recent peak in June, stocks will have entered a slump known by investors as a “bear market” if the losses hold when trading ends Friday, according to CNBC.

The Nasdaq was down by 30.92% this year, with the S&P 500 down 22.98% this year, as of close of business yesterday, according to data from MarketWatch.

“Stocks were overvalued because their nominal price has been fueled by the inflation of the Federal Reserve,” Heritage Foundation economist E.J. Antoni told the Daily Caller News Foundation. “As soon as the Fed took away the punch bowl… what happened? Stocks immediately took a nosedive and are continuing to do so, because the only thing that has been fueling this economic recovery hasn’t been real growth, but again, money creation.”

After wavering early this week as investors awaited the Federal Reserve’s Wednesday announcement of a third interest rate hike in just four months, stocks tumbled, with Goldman Sachs warning clients that investors are preparing for recession and slashing its expectations for the S&P 500 stock index by 16%.

After wavering early this week as investors awaited the Federal Reserve’s Wednesday announcement of a third interest rate hike in just four months, stocks tumbled, with Goldman Sachs warning clients that investors are preparing for recession and slashing its expectations for the S&P 500 stock index by 16%.

“Now we’re faced with the reality of having to do it the hard way, of having to actually grow the economy and not just grow the money supply.” Antoni said.

AUTHOR

JOHN HUGH DEMASTRI

Contributor.

RELATED ARTICLE: Stocks Stay Volatile As Recession Fears Loom

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Fearing Fed, Stocks Tumble And Major Investor Slashes Expectations

All three major U.S. stock indices fell Friday morning as investors worried that the Federal Reserve’s ongoing campaign of aggressive interest rate hikes would weaken the economy.

With Friday poised to be the fourth day in a row of slumping stocks, the Dow Jones Industrial average fell by 1.36%, the S&P 500 by 1.7% and the Nasdaq Composite fell by 2%, according to CNBC. Investors’ fears followed a late Thursday announcement by Goldman Sachs analysts, who slashed their year-end expectations for the S&P 500 by 16%, according to Reuters.

“Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude and duration of a potential recession and investment strategies for that outlook,” David Kostin, an analyst at Goldman, wrote in the note, according to Reuters.

This follows a Goldman Sachs note released earlier this week, which warned that the Fed was unlikely to relent from its pace of interest rate hikes, even in the event of a so-called “soft landing” where inflation is managed without inducing a recession. Fed Chair Jerome Powell has been clear that the agency will continue rate hikes until inflation is brought under control, and is well on its way to the Fed’s target of 2% annually.

Goldman’s earlier note predicted that the Fed would continue raising rates at least through the end of the year, with a 0.75% interest rate hike in November and a 0.5% interest rate hike in December. Central banks around the world, even some that previously had negative interest rates, have been aggressively pursuing rate hikes as inflation hammers economies worldwide, according to The Wall Street Journal.

AUTHOR

JOHN HUGH DEMASTRI

Contributor.

RELATED VIDEO: Clay Travis: 1.4% to 8.3% inflation under President Biden

RELATED TWEET:

RELATED ARTICLE: ‘Until Something Goes Wrong’: Goldman Sachs Warns Investors High Rates Are Here To Stay

EDITORS  NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Key Inflation Indicator Remains Sky-High In Another Worrying Sign For Businesses

The prices faced by producers rose by 8.7% year-on-year in August as inflation continues to challenge businesses, according to the Bureau of Labor Statistics (BLS).

While down from the near-record highs of 11.3% in June, the current price increases were over 4 times the typical rates — between 1 and 3% annually — seen in 2019 and 2020according to data from the Bureau of Labor Statistics’ Producer Price Index (PPI), which measures the prices suppliers charge businesses and other customers. These elevated rates mirror Tuesday’s Consumer Price Index (CPI), which pegged inflation at 8.3%, according to the BLS.

A significant component of the decrease was accounted for by a 5.2% decline in energy costs, according to the BLS. Mirroring July’s results, the index for foods and all goods less food and energy rose by 0.1% and 0.2%, respectively.

The index for all products other than foods, energy and trade services rose by 5.6% year-over-year,  less than the 5.8% posted in July, according to the BLS. The price for unprocessed goods was still incredibly elevated, at 36.1%, more than July’s value of 30.4%, as a spike in the price of natural gas kept prices up.

The Biden administration has been taking a victory lap on economic conditions, with Treasury Secretary Janet Yellen claiming the economy had undergone one of the fastest recoveries in modern history. President Joe Biden claimed that the passage of the Inflation Reduction Act had helped to combat inflation “at the kitchen table,” in a Tuesday speech at the White House.

Simultaneously, the BLS’ monthly CPI report placed inflation at 8.3%, and found that food prices had increased 13.5% annually. Rent and electricity were also up, 6.7% and 15.8% respectively.

Increased rent prices have put pressure on families in particular, with the average cost of a single family rental home up about 13.4% this year, according to CNBC. At a median cost of $2,495 per month, families who might otherwise save to purchase a house are being priced out of home ownership, CNBC reported.

Gas prices also remained incredibly elevated, despite having fallen 12.2% month-on-month, and were still up 25.6% compared to the same time last year, the BLS reported.

AUTHOR

JOHN HUGH DEMASTRI

Contributor.

RELATED ARTICLE: Food Prices Hit 40-Year High, Keep Breaking Records Every Month

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

‘Unconscionable’: Biden Admin Renames Hundreds Of ‘Racist And Derogatory’ Landmarks

The first recorded version of squa was found in a book called Mourt’s Relation: A Journey of the Pilgrims at Plymouth written in 1622. The term was not used in a derogatory fashion but spoke of the “squa sachim or Massachusetts Queen” in the September 20, 1621 journal entry.

“Squaw comes from a language of the Algonquian family in which it meant ‘woman’.”The True History of the Word Squaw


President Joe Biden’s Interior Department (DOI) released replacement names for almost 650 “racist and derogatory” geographical features on federal lands, the agency said Thursday.

The word “squaw” was determined by DOI’s Board of Geographic Names to be an an “offensive ethnic, racial and sexist slur, particularly for Indigenous women,” according to a press release. The word is from 1622 and means “an Indigenous woman of North America,” according to Merriam-Webster, and it was in the names of canyons, lakes, springs and other geographical features until Thursday.

“I feel a deep obligation to use my platform to ensure that our public lands and waters are accessible and welcoming,” DOI Secretary Deb Haaland said Thursday. “Together, we are showing why representation matters and charting a path for an inclusive America.”

DOI created a Derogatory Geographic Names Task Force in 2021, saying in an order “squaw” will soon be moved out of the names in federal land features. The agency held a final vote on the land name replacements and the Derogatory Geographic Names Task Force received over 1,000 name recommendations during the public comment period, DOI said Thursday.

Karen Budd-Falen, deputy solicitor for DOI’s parks and wildlife division under former President Donald Trump, said the Biden administration is too focused on “political correctness” instead of more important policy issues.

“There are great issues in this country that really need time and attention,” Budd-Falen told the Daily Caller News Foundation. “I just worry that we’re so busy worrying about political correctness and we’re not focused on these other issues more pressing issues and issues that are really going to affect the future structure of energy and American rural communities.”

Geographical features in dozens of states, including California, Alaska, Alabama and Pennsylvania are impacted by DOI’s order. While the new land names are effective immediately, the public can still suggest other name changes.

“It’s unconscionable that at a time of record inflation, record high gas prices, and an unsecured border, this is what the Biden administration is focusing on,” Republican Texas Rep. Troy Nehls told the DCNF. “This is yet another attempt to rewrite history to fit the Democrats’ extremist narrative.”

“It’s a shame, and this is not what the American people want,” said Nehls.

DOI did not respond to a request for comment.

AUTHOR

GABE KAMINSKY

Investigative reporter.

RELATED TWEET:

RELATED ARTICLES:

The True History of the Word Squaw

Biden’s Interior Secretary Refers To The US Capital As The ‘Ancestral Homelands’ Of Native American Tribes

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Van Jones: Biden Wants Election to Be about Trump, Not Inflation

Monday on CNN’s Situation Room, CNN Political Commentator Van Jones stated that President Biden wants the election “to be a choice between Trump and himself” but that he needs to tell people, “I’m not just going to write you off” if you don’t vote Democrat.

Jones said, “I think he’s trying to do something that’s difficult. He wants this election, frankly, to be a choice between Trump and himself, and not just a referendum on inflation, etc. So, that’s a part of the political strategy here.”

To be clear, what Biden wants is to divert attention from his catastrophic presidency and demonize Trump and the Right as domestic terrorists, fascists, and threats to democracy. His “strategy” is fear-mongering and the politics of personal destruction.

Jones continued, giving the mentally decrepit and hateful Biden far more credit than he deserves: “What Joe Biden should be saying [to the GOP] is, ‘Guys, I’m not even asking you guys to become Democrats. I want you to become Republicans again. I want you to actually be true to your best values. You are the party of Lincoln. You are the party of Jack Kemp. I want to work with you, be your best self. I’ll fix my party. I’ve got nuts in my party, but you’ve got to be better in your own party.’ That kind of conversation from Joe Biden, I think would shock a lot of people. I think the idea that you only talk to people if you can convince them to vote for you, and if they won’t vote with you, you don’t care about them, that’s not us. That’s some new, weird stuff in America. It works on Twitter. It doesn’t work when you’re trying to run a country.”

Jones is right when he says that painting half the country as the enemy is no way to run a country. But that’s the Democrat way.


Van Jones

128 Known Connections

Jones says he became politically radicalized in the aftermath of the April 1992 Los Angeles riots which erupted shortly after four L.A. police officers who had beaten the now-infamous Rodney King were exonerated in court. “I was a rowdy nationalist on April 28th,” says Jones, “and then the verdicts came down on April 29th. By August, I was a communist.”

In early May 1992, after the L.A. riots had ended, Jones was dispatched by LCCR executive director Eva Patterson to serve as a legal monitor at a nonviolent protest (against the Rodney King verdicts) in San Francisco. Local police, fearful that the event would devolve into violence, stopped the proceedings and arrested many of the participants, including all the legal monitors. Jones spent a short time in jail, and all charges against him were subsequently dropped. Recalling his brief incarceration, Jones says: “I met all these young radical people of color. I mean really radical: communists and anarchists. And it was, like, ‘This is what I need to be a part of.’ I spent the next ten years of my life working with a lot of those people I met in jail, trying to be a revolutionary.”

To learn more about Van Jones, click here.

RELATED ARTICLES:

Jean-Pierre Struggles When Confronted with Her Record of Election Denial

Vet to Milley: Your Job is to Win Wars, Not Fight Climate Change

BLM Exec Accused of ‘Siphoning’ Over $10 Million from Donors

EDITORS NOTE: This Discover the Networks column is republished with permission. ©All rights reserved.

The Biden Administration Says U.S. Not in a Recession, but Federal Statutes Say Otherwise. Who is Right?

Is the U.S. economy in recession? The answer is, paradoxically, both easier and more complicated than you might think.


As expected the United States posted negative growth for the second consecutive quarter, according to government data released on Thursday.

“Real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022, following a decrease of 1.6 percent in the first quarter,” the US Bureau of Economic Analysis announced.

The news prompted many outlets, including The Wall Street Journal, to use the R word—recession, which historically has been commonly defined as “economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

The White House does not agree, however, and following the release of the data, President Biden said the US economy is “on the right path.”

The comments come as little surprise. Treasury Secretary Janet Yellen had recently hinted that the White House would contend the economy wasn’t actually in a recession even if Q2 data indicated the economy had contracted for a second consecutive quarter.

“There is an organization called the National Bureau of Economic Research that looks at a broad range of data in deciding whether or not there is a recession,” Yellen said. “And most of the data that they look at right now continues to be strong. I would be amazed if they would declare this period to be a recession, even if it happens to have two quarters of negative growth.”

“We have a very strong labor market,” she continued. “When you are creating almost 400,000 jobs a month, that is not a recession.”

Yellen is not wrong that NBER, a private nonprofit economic research organization, looks at a much broader swath of data to determine if the economy is in a recession, or that many view NBER’s Business Cycle Dating Committee as the “official recession scorekeeper.”

So White House officials have a point when they say “two negative quarters of GDP growth is not the technical definition of recession,” even though it is a commonly used definition.

On the other hand, it’s worth noting that federal statutes, the Congressional Budget Office, and other governing bodies use the two consecutive quarters of negative growth as an official indication of economic recession.

Phil Magness, an author and economic historian, points out that several “trigger” provisions exist in US laws (and Canadian law) that are designed to go into effect when the economy posts negative growth in consecutive quarters.

“For reference, here is the definition used in the Gramm-Rudman-Hollings Act of 1985,” Magness wrote on Twitter, referencing a clause in the Act. “This particular clause has been subsequently retained and replicated in several trigger clauses for recessionary measures in US federal statutes.”

It’s worth noting that Magness doesn’t contend the two consecutive quarters definition is the best method of determining whether an economy is in a recession, but simply points out that claims that it’s an “informal” definition of recession are untrue.

“It may not be a perfect metric, but it has a very long history of being used to determine policy during recessions,” Magness writes.

Some readers may find it strange that so much heat, ink, and energy is being spent on something as intangible as a word, which is a mere abstraction that has no value. And some policy experts agree.

“Whether [we’re] in a technical recession is less interesting to me than the following 3 questions,” Brian Riedl, an economist at the Manhattan Institute, recently said. “1) Are jobs plentiful? (Yes – good) 2) Are real wages rising? (Falling fast – bad) 3) Is inflation hitting fixed income fams? (Yes – bad.)”

Others contend that definitions matter, and that by ignoring the legal definition of recession, the Biden White House can continue to argue that the US economy is “historically strong” even as economic growth is negative, inflation is surging, and real wages are crashing.

As Charles Lane recently pointed out in the Washington Post, words have power. He shares a colorful anecdote involving Alfred E. “Fred” Kahn, an economist who served in the Carter Administration who was instructed to never use the words “recession” or “depression” again.

In 1978, Kahn — a Cornell University economist in charge of President Jimmy Carter’s inflation-fighting efforts — said that failure to get soaring prices under control could lead to a “deep, deep depression.” Carter’s aides, perturbed at the possible political fallout, instructed him never to say that word, or “recession,” again.

We don’t know whether this instruction stirred the wrath of Kahn, a verbal stickler notoriously disdainful of cant and euphemism; in a previous government job, he had sent around a memo telling staff not to use words like “herein.”

It did trigger his wit, though: In his next meeting with reporters, Kahn puckishly said the nation was in “danger of having the worst banana in 45 years.”

Lane’s anecdote about Kahn is instructive because it reveals something important about these debates. While they may have a certain amount of importance as far as political spin goes, they are meaningless as far as economic reality is concerned. Substituting the word “banana” for recession did not change economic conditions or the economic outlook one bit, which no doubt was precisely Lane’s point.

My colleague Peter Jacobsen made this point effectively earlier this week.

“[You] don’t need a thermometer to feel if it’s hot outside,” he wrote. “Economic issues, especially inflation, top the list of concerns for voters going into the 2022 midterms, and it isn’t particularly close. So officially defined recession or not, it doesn’t really matter.”

Moreover, Jacobsen explains, macroeconomic data like GDP have historically been the tool of politicians and bureaucrats, who use them to justify economic interventions.

“When GDP numbers fall below a certain level, politicians can use that data to try to push income back up. Or perhaps when the economy is ‘running too hot’ politicians can use fiscal and monetary policy to slow down the economy.

All of these metaphors about economies running hot or stalling are based on a central planning view of the economy. In this view, the economy is like a machine which we can adjust to bring about the proper results. Without macroeconomic statistics, central planners have fewer means by which to justify particular interventions. We can’t claim we need stimulus if we can’t point to some data indicating it’s necessary.”

The takeaway here is an important one. We don’t need “bureaucratic weathermen” telling us when the economy is good or bad anymore than we need them “managing” the economy with the money supply, which is precisely how we got here in the first place.

So while the debates over the R word are likely to continue, it’s important to remember it doesn’t really matter if you call this economy a recession or a banana. The fundamentals speak for themselves.

AUTHOR

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.

RELATED VIDEO: GDP Report Shows Economic Plunge

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Inflation Hits Yet Another Record High As Americans Feel The Squeeze

Inflation climbed 9.1% over the past 12 months, the highest year-over-year percentage increase since December 1981, the Department of Labor (DOL) announced Wednesday.

The Consumer Price Index (CPI) increased 1.3% between May and June, according to the DOL report released Wednesday. Economists had predicted that CPI would increase by 1.1% last month and 8.8% over the 12-month period ending in June.

“The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising,” the DOL said in their report. “The food index rose 1.0 percent in June, as did the food at home index.”

The White House preemptively downplayed the inflation data, saying the metric was already outdated as prices have begun to supposedly decrease.

“June CPI data is already out of date because energy prices have come down substantially this month and are expected to fall further,” White House Press Secretary Karine Jean-Pierre said on Tuesday.

“I don’t think that number peaks until September and I think at that point it will be in double digits,” E.J. Antoni, research fellow for Regional Economics at The Heritage Foundation told the Daily Caller News Foundation.

Wednesday’s report follows a steady stream of negative polling for President Joe Biden, including one New York Times survey that found a majority of Democrats would prefer the 79-year-old not run in 2024. Voters have cited the economy and inflation as major issues ahead of the midterms.

The gasoline index rose 11.2%, while the food at home index increased 10.4%,  year over year, BLS reported. Almost all aspects of American purchases increased in June, including shelter, airline fares, new and used cars and trucks, medical care, household furnishings and operations, recreation and clothing, according to BLS.

CPI surpassed the Federal Reserve’s 2% target in May 2021 and has continuously climbed higher and higher since, according to federal data.

AUTHOR

MAX KEATING

Contributor.

RELATED TWEET:

RELATED ARTICLE: The DeSantis Boom: Florida Economy Soars As State Records Highest Budget Surplus Ever

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

POLL: Inflation, Economy And Crime Still More Important Than Abortion To Voters Post-Dobbs

Voters still rank economic concerns and rising crime higher in importance than abortion even after the Supreme Court overturned Roe v. Wade, a Cygnal study released Wednesday found.

The most important issues to voters polled were the high cost of living/inflation, the economy in general and crime/violence. A full 62% of voters ranked these issues as the most important to them.

Only eight percent said abortion was the most important issue to them.

The study had a margin of error of 2.19%. Cygnal interviewed registered voters via online panel, and the poll was conducted through June 25 and 26 and surveyed over 2,000 voters. Cygnal has a B+ rating according to FiveThirtyEight and has predicted 95% of races correctly.

Among independents, high cost of living/inflation, economy in general and jobs were top concerns, with 60% of independent voters ranking them as the most important issues to them. Comparatively, 20% of independent voters ranked abortion as the most important issue to them.

According to the poll, voters seem to have a slight preference for Republicans candidates over Democrat candidates heading into the midterms. Of those surveyed, 48% said they would prefer a Republican candidate and 44% said they would prefer a Democratic candidate.

The polling also showed Republicans leading as the party most trusted to handle economic issues. Republicans are trusted to handle the high cost of living and inflation, for instance, at a rate of 51%, compared to 49% who trusted them in a January poll. The percentage of voters who trusted Democrats to handle those issues remained steady from January, at 39%.

“Friday’s decision did nothing to change the headwinds state Democrats will face this year as a result of a dismal national political environment,” the Republican State Leadership Committee said of the polling numbers.

AUTHOR

SARAH WEAVER

Staff writer.

RELATED ARTICLES:

HART: Dems’ Dearth Of Ideas Spawns Weaponization Of Government Against Opponents

The Internet Drags Biden For Claim About The ‘Ultra-MAGA’ Agenda

AMERICAN PRIDE ON THE SLIDE: Record-Low 38% ‘Extremely Proud’ to Be American

Poll Shows How Much The Trimester Affects Support For Abortion

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.

There Ain’t No Such Thing as a Cost-Plus Lunch! Who’s really to blame for rising prices?

Why are restaurants adding “inflation fees” to their checks?


A group of friends had just finished a meal at Romano’s Macaroni Grill in Honolulu when one of them noticed something odd about the check. As a local television news station reported in April, a “Temporary Inflation Fee” of $2.00  was nestled inconspicuously between the $4.50 Flavored Tea and the $14.00 Spinach & Artichoke Dip.

The restaurant chain’s website explained that the charge was added to “partially offset… operational cost increases” due to unusual economic conditions including “global supply chain shortages and ever-growing pressure from inflation.” The statement said, “we believe these burdens will eventually pass,” which is why they resorted to a temporary surcharge instead of simply raising the listed prices. An alternative explanation is that surcharges that show up on the check but not the menu are a sneaky way to try to raise prices without losing customers.

The Wall Street Journal recently cited this incident as part of a general trend:

“Lightspeed, a global developer of point-of-sale software, said fee revenue nearly doubled from April 2021 to April 2022, based on a sample of 6,000 U.S. restaurants that use its platform. The number of restaurants adding service fees increased by 36.4% over the same period.”

The Journal cited industry analysts who basically agreed with Romano’s, explaining that:

“…this wave of surcharges is mostly being driven by restaurants trying to cope with the impact of rising inflation and a tight labor market on their bottom lines.” (…)

“​​Inflation and the pandemic posed particular challenges for the restaurant industry. The average price of supplies for a restaurant operator increased by 17.5% since last year, according to NPD Group. By comparison, consumer spending at restaurants rose 5% during that time.

The increase in surcharges is a way for businesses to recoup at least some of those costs, said David Portalatin, a food-industry adviser with the group.”

In media coverage of today’s rising prices in general, this has become a prevailing narrative: “businesses are passing their rising costs onto consumers.”

While superficially plausible, this gets the economics of prices the wrong way round.

The explanation refers to “cost-plus pricing,” which is the business practice of setting prices by starting with your costs and then adding a markup.

Of course, nothing in economics says that a business owner cannot use this method to decide on a price to quote. Surely, some do exactly that. But it is only a heuristic and it is not what fundamentally drives price changes.

Just as “there ain’t no such thing as a free lunch” (TANSTAAFL), there ain’t no such thing as a cost-plus lunch.

To explain price increases as resulting from “passing costs on to the customer” is to implicitly embrace a “cost of production” theory of value and prices, which, in a nutshell, maintains that costs determine prices.

Of course, costs are prices, too. A business’s “costs” are the prices it pays for factors of production (land, labor, and capital goods). So, in a bigger nutshell, this theory posits that “factor prices determine product prices.”

But this is the exact opposite of how an economy actually works. As Murray Rothbard wrote in his economics treatise Power and Market, “Prices, however, are never determined by costs of production, but rather the reverse is true.” In other words, it is anticipated product prices that determine factor prices: prices that determine costs, not the other way around.

This insight was one of the great discoveries that resulted from the “Marginal Revolution” of economics in the 1860s and 70s. This was a literal “revolution” in the sense that it showed the old economic paradigm to be upside-down and then turned it right-side-up.

Before the Marginal Revolution, the “classical economists” largely subscribed to Adam Smith’s cost-of-production theory of value or David Ricardo’s labor theory of value. The latter, like the former, derived the value of products from the value of factors: specifically the factor of labor. (Incidentally, Karl Marx largely based his exploitation and class war theories on Ricardo’s labor theory of value.)

For example, classical economists might have traced the high value of a bottle of fine wine to the high real estate value of the vineyard and/or the amount of labor that went into producing the wine.

But the Marginal Revolutionaries—William Stanley Jevons, Leon Walras, and Carl Menger—upended that paradigm. They and their followers (especially the Austrian school of economics, founded by Menger) explained that the value of a good is based on its “marginal utility,” which is the usefulness for want-satisfaction of an additional unit of a good. And what’s useful about a factor of production is that it can help produce useful products.

For example, the utility of a wine vineyard is that it can yield wine grapes. The same goes for the utility of a vineyard worker’s labor. And the utility of wine grapes is their contribution toward producing enjoyable wine.

So Austrian economists do the opposite of what the classical economists did. Austrians trace the real estate price of the vineyard and the wages of the vineyard worker to the anticipated value of the wine at the end of the production line.

The insights of the Marginal Revolution made it clear that prices determine costs (product prices determine factor prices), not the other way around, and that ultimately consumer preferences determine all prices.

(Note: Alfred Marshall tried to reconcile the classical cost-of-production theory with marginal utility theory in a “neoclassical synthesis” that has influenced mainstream economics to this day. See here for Murray Rothbard’s Austrian critique of that attempt.)

So the “cost passing” explanation of rising prices is a retrogression to a long-overthrown economic paradigm: the economic equivalent of forgetting the heliocentric Copernican Revolution of astronomy and explaining planetary movements using the archaic geocentric model of Ptolemy. Just as the sun does not revolve around the earth, consumer prices do not revolve around producer costs: quite the opposite.

Many on the political left blame corporations for “price gouging” in order to fatten their profits. But blaming rising prices on profit-seeking is like blaming a plane crash on gravity.

Gravity is always pulling down on planes. To explain a plane crash, you have to explain what happened to the factors that had previously counteracted that downward pull. Why did gravity yank the plane down to earth when it did and not before?

Similarly, businesses are always seeking profit and are always ready to raise prices if that is what will maximize profits. To explain precipitous price hikes, you have to explain what happened to the factors that had previously put a lid on that upward price pressure. Why did profit-seeking propel prices skyward recently and not in 2019?

This question is also tricky for those (including some on the political right) who blame rising prices on rising costs. If businesses can preserve profits by raising prices now that their costs are higher, why wouldn’t they have increased profits by raising prices before when their costs were lower?

A business’s customers don’t care about that business’s costs. They care about value. Based on the value they expect from a product, there is a limited price range they’d be willing to pay for any given amount of it. That translates into the market demand for the product: the quantity of a good that would be bought at any given price point. The value of, and demand for, a product does not fluctuate with its production costs.

Even businesses don’t (or at least shouldn’t) really care about past costs when it comes to pricing. Past costs are sunk. Whatever was spent to produce it, at any given moment a business has a given inventory. Its best interest is to price that inventory so as to maximize revenue given current demand. Based on that definite demand, raising prices past a certain point will result in less revenue, regardless of past costs. If the most revenue they can hope for is less than their past expenditure, that’s just the way things turned out. They can learn from that error and from those losses by spending less and/or differently in the future. But they cannot change the past or defy the economic reality of the present.

As economist Jonathan Newman told FEE in an interview:

“There is no change in costs that directly affects the revenue-maximizing price. If the prevailing market price is one that maximizes revenue for the firm, then it is impossible for the firm to ‘pass on’ costs to the consumer by increasing prices, because this would result in less revenue.”

Newman reminds us that, “factors of production are valued because they help us make consumer goods, not the other way around. What consumers are willing to pay for consumption goods determines what entrepreneurs are willing to pay for land, labor, and capital goods.” He offers an extreme example to make this point:

“Suppose that tomorrow the government decides to tax the sale of ink for ballpoint pens at $1 billion per mL. Would pen makers be able to carry on as usual and pass this increased cost on to consumers? Would consumers be willing to pay $1,000,000,000.25 for a pen? Of course not. Anticipated consumer demand is a limit on what producers will pay for inputs. More expensive inputs does not mean consumers are ready to pay a higher price for outputs.”

So if “cost passing” isn’t what’s driving up prices, what is? Newman points to monetary expansion by central banks, especially the Federal Reserve:

“I suspect that many firms will be able to get away with increased prices because of this. Even if their stated intention is to ‘pass on’ or share costs with their customers, the increased demand from the trillions of dollars that have been injected into the economy over the past couple years is what really makes their price increases both necessary and feasible.”

It is important to note that monetary price inflation is also not “passed on” from suppliers to customers, as “inflation surcharges” might lead you to believe. Again, the reality is the reverse of that. Extra money enables customers to bid up the prices charged by their suppliers, who in turn use the extra money to bid up the prices charged by their suppliers, and so on. That is how new money raises prices across the board (although, unevenly) as it circulates through the economy.

Another contributing factor to rising prices, at least in many specific industries, is today’s supply chain crisis. To an extent, Romano’s and industry analysts are right to blame rising restaurant prices on supply constraints. But they are wrong to characterize it as a matter of “passing on” or “recouping” costs. Rather, it is a matter of greater scarcity translating into a higher marginal utility of certain goods and thus higher prices.

For example, a major factor in today’s high food prices is undoubtedly the war in Ukraine. Both Ukraine and Russia were major exporters of grain. But, owing to Russia’s blockade of Ukraine and the West’s sanctions on Russia, grain exports from both countries have been throttled.

As a result, food processors have less grain to produce foodstuffs like, for example, macaroni. And as a result of that, restaurants have less macaroni to produce macaroni dishes. And when there’s less of something, its price tends to go up. That is probably one of the reasons why the Honolulu diners at Romano’s Macaroni Grill discussed above paid $11.00 for “Signature Mac & Cheese Bites.”

This phenomenon is not “passing on costs.” It is the rippling repercussions of economic destruction and impoverishment. The word “passing” implies that consumers are impoverished while producers are not. But that is not the case. Diminished production and greater scarcity impoverish everyone involved.

It is also confusing to call that “inflation,” although both academia and the media tend to lump all price increases together under that term. For any given increase in prices, part of it may be caused by monetary expansion, and another might be due to supply constraints. Personally, I think it would be clearer to call only the former, and not the latter, “inflation.” Price increases due to an increasing abundance of money should be distinguished from price increases due to a declining abundance of goods and services, although the former very frequently causes the latter (especially by creating economic bubbles and crashes).

Especially since the advent of the Covid crisis in 2020, we have suffered plenty of both. Central banks have been driving up prices with money printing sprees undertaken to finance government spending sprees. Governments have also been driving up prices by sabotaging supply chains through lockdowns, business shutdowns, wars, trade restrictions, and other policies of mass economic destruction.

As prices continue to rise and living standards continue to drop, it is important to understand how it is happening, why it is happening, and who is truly to blame.

AUTHOR
Dan Sanchez

Dan Sanchez is the Director of Content at the Foundation for Economic Education (FEE) and the editor-in chief of FEE.org.

EDITORS NOTE: This FEE column is republished with permission. All rights reserved.

How Biden Raised Gas Prices Without Anyone Noticing

  • U.S. pump prices have surged throughout President Joe Biden’s tenure in office, even as Democrats continue to blame the spike on Russia’s invasion of Ukraine and Big Oil companies.
  • The average price of gasoline nationwide increased a whopping 48.4% between Biden’s January 2021 inauguration and Feb. 21, three days before Russian President Vladimir Putin invaded Ukraine.
  • “We haven’t had a federal lease sale in North Dakota in over a year,” Republican North Dakota Rep. Kelly Armstrong, a member of the House Energy and Commerce Energy Subcommittee, told the Daily Caller News Foundation in an interview. “These are real things — that you are sending signals, not just to energy companies, but also to Wall Street.”

President Joe Biden and Democrats have blamed the continued gasoline price surge on Big Oil and Russia’s invasion, but pump prices have climbed throughout his tenure.

While Russia’s invasion of Ukraine has destabilized global energy markets, causing an historic supply crunch, high gasoline prices have been the norm throughout Biden’s first 14 months, federal data showed. Experts have blamed the high prices on the administration’s energy and climate policies disincentivizing domestic fossil fuel production.

Since Russia’s invasion, gasoline prices have increased more than 20%, from $3.53 per gallon to $4.24 per gallon, according to the Energy Information Administration. However, pump prices increased a whopping 48.4% between Biden’s January 2021 inauguration and Feb. 21, three days before Russian President Vladimir Putin ordered troops into Ukraine.

Democrats and the White House initially blamed Russia for the entirety of the price increases, calling it “Putin’s gas price hike,” before also accusing oil companies of profiteering off the crisis.

“While there is no denying that Putin’s war has led to instability on global energy markets, I remain concerned that the oil industry is not doing enough to protect American consumers from rising gas prices,” House Natural Resources Committee Chairman Raúl Grijalva wrote to Big Oil executives on March 18.

However, fossil fuel industry groups and Republicans have slammed the Biden administration for its long string of policies dating back to the president’s first day in office. They accused Biden of waging a war on fossil fuels, causing decreased capital flows to domestic projects.

“The United States has shown its global energy dominance over the past decade,” Independent Petroleum Association of America COO Jeff Eshelman told the Daily Caller News Foundation in February. “Unfortunately, this has been threatened by the current Administration’s policies against domestic natural gas and oil production.”

“Make no mistake, natural gas and oil production here at home benefits not only our nation, but also our worldwide allies,” he added. “For America, it means less reliance on oil imports from unfriendly countries.”

Among Biden’s first actions as president was to revoke the Keystone XL pipeline’s federal permit, which would have transported more crude oil into the U.S. from Canada. The administration also abandoned the Willow Project, a significant oil and gas project in Alaska approved by the Trump administration that would have produced 100,000 barrels of oil per day.

After a federal judge ordered the Biden administration to halt its attempted ban on new federal land drilling leases, the Department of the Interior has dragged its feet and defied multiple court-ordered deadlines to restart the program. The Interior Department also chose not to appeal a recent ruling that prohibited an offshore drilling lease in the Gulf of Mexico the agency facilitated in the fall.

Further, the administration hasn’t developed a new five-year federal leasing program — which is needed to plan future lease sales — to replace the current one which expires in late June 2022according to a Congressional Research Service report from December. The most recent offshore lease sale occurred in 2020 during the Trump administration.

Overall, there are just 601 oil and gas drilling rigs active in the U.S., the latest government data showed. The number of rigs peaked under the Trump administration in 2018 when there were 1,032 active.

The U.S. is also on track to again become a net importer of oil in 2022 after briefly reaching net exporter status in 2020. The U.S. became a net exporter of total energy in 2019, factoring in oil, coal and natural gas trade, for the first time in 75 years.

“We haven’t had a federal lease sale in North Dakota in over a year,” Republican North Dakota Rep. Kelly Armstrong, a member of the House Energy and Commerce Energy Subcommittee, told the DCNF in an interview. “These are real things — that you are sending signals, not just to energy companies, but also to Wall Street.”

“(Drilling projects) take several years to do and a ton of capital the raise,” he continued. “How are you going to do that when you have an administration basically signaling that they want nothing to do with oil and gas?”

North Dakota produced 1.1 million barrels of oil per day in 2021, the third-largest statewide output, according to federal data.

AUTHOR

THOMAS CATENACCI

Energy and environment reporter.

RELATED TWEET:

RELATED ARTICLES:

‘Slap In The Face’: Dems’ Solution To High Gas Prices Is More Stimulus Checks

Biden Administration Backtracks On Media Reports Signaling Oil, Gas Leasing Resumption

Biden Administration’s Offshore Oil Leasing Policy Will Crush American Energy Security, Experts Say

Police Advise People In Texas Town To Lock Gas Caps

‘Shortfall’: Trump Energy Secretary Casts Doubt On Biden Gas Deal With EU

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Americans Can’t Afford Gas, Congress Just Gave Itself a 21% Raise

The $1.5 trillion omnibus bill has plenty of inflationary spending, and the honorable members of the legislature didn’t leave themselves out.

As part of the $1.5 trillion omnibus spending bill released Wednesday, the $5.9 billion fiscal 2022 Legislative Branch funding portion would substantially boost the office budgets of House members to pay staff more…

This legislation would provide $774.4 million for the Members Representational Allowance, known as the MRA, which funds the House office budgets for lawmakers, including staffer salaries. This $134.4 million, or 21 percent, boost over the previous fiscal year marks the largest increase in the MRA appropriation since it was authorized in 1996, according to a bill summary by the House Appropriations Committee. For paid interns in member and leadership offices, the House would get $18.2 million.

It’s not technically a pay hike for congressmembers, but, in particular House members, are notorious for putting family members on the payroll. And for using staffers to run their errands and handle assorted personal projects for them.

In August, Speaker Nancy Pelosi announced staffers’ salaries could exceed those of lawmakers. Members in both the House and Senate, with the exception of leadership, make an annual salary of $174,000. Staffers can make up to $199,300.

That’s convenient since it can act as a pay hike without the negative press.

MRAs tend to be between $1.2 and $1.4 million. A massive MRA increase has all sorts of political and potentially personal benefits. It’s also completely indefensible during an economic crisis.

House Dem leaders are cheering the disgusting pork sandwich as a victory for diversity.

House Majority Leader Steny H. Hoyer (MD-05) and House Democratic Caucus Chair Hakeem Jeffries (NY-08), released the following statement this morning on the inclusion of a 21% increase in Member Representational Allowance (MRA) funding in the Fiscal Year 2022 Omnibus legislation.

Leader Hoyer and Chair Jeffries have long advocated for this increase to the MRA in order to ensure that Members, leaders, and committees can attract and retain the best and brightest to help them serve the American people while promoting a more diverse workforce.

Is there any obscenity that can’t be justified in the name of diversity?

“We join in thanking Chairwoman DeLauro and Ranking Member Granger as well as the Members on the Appropriation Committee for producing a bipartisan omnibus package that includes this increase in office budgets so that Congressional staff pay can be a priority and enhance this institution’s ability to deliver For the People.”

For the People.

Ask not what Congress can do for you, ask what you can do for Congress.

COLUMN BY

RELATED VIDEO: Nancy Pelosi Comforts Zelensky With an Offer of Help From … Billie Jean King

RELATED ARTICLES:

Biden: ‘Putin just decides he’s gonna invade Russia’

Capitol Police Funding Went From $375,000,000 to $602,000,000

Canada: Trudeau rejects Zelensky’s request for no-fly zone over fears of Russian escalation, says he’s heartbroken

Saudis, Emiratis Alarmed by U.S. Capitulation to Iran

EDITORS NOTE: This Jihad Watch column is republished with permission. ©All rights reserved.

Inflation Soars To Another Four-Decade High

The Consumer Price Index (CPI) increased 0.8% in February, bringing the key inflation indicator’s year-over-year increase to 7.9%, the U.S. Bureau of Labor Statistics (BLS) reported.

The CPI reached another four-decade high throughout February, with prices increasing nearly 8% on a year-over-year basis, the BLS reported Thursday. Economists surveyed by The Wall Street Journal projected the index to have grown just 7.8%.

The core price index, which measures inflation of goods less food and energy, increased 0.5% in February, the BLS reported. Food prices reportedly grew 7.9% on a year-over-year basis as of February, the BLS reported, and energy prices soared 25.6%.

Economists projected inflation would ease in the spring, when the Federal Reserve begins its interest rate hikes, but Russia’s invasion of Ukraine has threatened higher prices, especially in energy, wheat and precious metals, the WSJ reported.

“We thought that inflation would come down, especially due to the untangling of the global supply chain, but we don’t know how what’s happening in Ukraine will re-tangle that,” Joel Naroff, chief economist at Naroff Economics LLC, told the WSJ.

Federal Reserve Chairman Jerome Powell expects the central bank to raise rates by one-quarter of a percentage point after its March 15-16 meeting, according to the WSJ.

“I do think it’s going to be appropriate for us to proceed along the lines we had in mind before the Ukraine invasion happened,” Powell said, the WSJ reported. “In this very sensitive time at the moment, it’s important for us to be careful in the way we conduct policy simply because things are so uncertain and we don’t want to add to that uncertainty.”

COLUMN BY

HARRY WILMERDING

Contributor.

RELATED ARTICLE: Toilet Paper Prices Soar As Companies Shrink The Item Itself

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Inflation Is Costing Households $250/Month, Moody’s Analysis Finds

As economist Ludwig von Mises colorfully put it, inflation is when ‘money, like chocolate on a hot oven, [is] melting in the pockets of the people.’


Inflation is making headlines again this week. The federal government’s latest data show that consumer price rose 7.5 percent from January 2021 to 2022. That’s the highest rate of price inflation we’ve seen in nearly 40 years!

What does this mean for everyday American families?

new analysis from Moody’s Analytics reports that the average US household is paying an additional $250 a month thanks to this inflation.

“A lot of people are hurting because of high inflation,” Moody’s senior economist Ryan Sweet told the Wall Street Journal. “$250 a month—that’s a big burden. It really hammers home the point of ‘what is the cost of inflation?’”

This disturbing revelation brings into focus something we already knew about inflation: it hurts the working class the most. While $250 a month is hardly a noticeable increase for millionaires, that could easily strain a working-class or even middle-class family’s budget past its breaking point.

Price inflation also erodes Americans’ hard-earned savings in a way that’s just as painful as the government directly hiking their taxes. As economist Ludwig von Mises colorfully put it, inflation is when “money, like chocolate on a hot oven, [is] melting in the pockets of the people.”

That’s exactly what we’re living through. But this leaves us with a more important question: Why are we seeing this surge in consumer prices? Is it some abstract economic phenomenon beyond our control? Is it due to “corporate greed?”

On the contrary, inflation directly traces back to decisions made by our elected (and unelected) government officials.

“The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague,” Mises famously explained. “Inflation is a policy.”

The primary cause of today’s inflation is the decision by the Federal Reserve, America’s central bank which controls the US dollar, to create trillions of new dollars out of thin air to ostensibly “stimulate” the economy during the pandemic.

Federal Reserve Chairman Jerome Powell openly admitted as much in an interview with CBS.

“[Is it] fair to say you simply flooded the system with money?” a reporter asked.

“Yes,” he responded. “We did. That’s another way to think about it. We did.”

“Where does it come from? Do you just print it?” the journalist followed up.

“We print it digitally,” Powell replied. “So as a central bank, we have the ability to create money digitally… that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.”

To understand what “flooding the system with money” looked like, just consider the following graph of the money supply—and how dramatically it soared at the start of 2020.

CLICK HERE TO VIEW MONEY SUPPLY GRAPH

How does increasing the amount of money out there lead to higher prices?

As FEE economist Peter Jacobsen has explained, “If more dollars chase the exact same goods, prices will rise.”

We’re watching this Econ 101 lesson play out before our eyes. And it’s a painful lesson indeed for the millions of American families that have hundreds more out of their monthly budgets just to tread water. Here’s hoping our policymakers learn from their mistakes before it even gets worse.

WATCHBrad Debunks the WORST Inflation TikToks

COLUMN BY

Brad Polumbo

Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Policy Correspondent at the Foundation for Economic Education.

RELATED ARTICLES:

Analyst Warns Warmer Weather will Send Gas Prices Soaring ‘A Lot Higher’

New Hampshire Is the Freest State in America. Here’s Why

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Biden Celebrates Thanksgiving At Billionaire’s Compound As Normal Americans Struggle Through Inflation

President Joe Biden will spend his Thanksgiving holiday at a private billionaire’s compound as inflated costs continue to surge for lower and middle class Americans.

The president landed in Nantucket, Massachusetts, on Tuesday where he is expected to celebrate Thanksgiving with Carlyle Group co-founder David Rubenstein, according to Fox News. The Biden family has spent the holiday on the island for several decades, but canceled their plans in 2020 due to the COVID-19 pandemic.

Meanwhile, the price of the average Thanksgiving dinner has risen more than 14% from the previous year, according to the American Farm Bureau Federation’s annual Thanksgiving dinner cost survey. The report further shows that the average Thanksgiving dinner for six people will cost an approximate $53.31, with the cost of turkey alone skyrocketing by 24% in comparison to the previous year.

A recent Trafalgar poll revealed that 52% of Americans say inflation forced them to change their holiday plans in accordance to the rise in food prices and shortages.

House Minority Leader Kevin McCarthy criticized the president’s Nantucket holiday Wednesday by pointing to the average American’s struggle with inflation during the Thanksgiving holiday.

“Dear President Biden, while you are in Nantucket, enjoying your meals at a billionaire’s compound, here are the prices that Americans are paying for their Thanksgiving dinner-the most expensive one in history,” he wrote.

The country has witnessed its highest inflation levels in the past three decades, with the Consumer Price Index reaching 6.2% on a year-over-year measure. Food companies’ quarterly profits have fallen significantly as a result of inflation, labor shortages and supply chain issues, forcing them to increase the price of their meat, grain and steel can products.

The U.S. has suffered a shortage of oil production that caused gas prices to stand at an average of $3.40 per gallon, hitting its highest Thanksgiving week level since 2012, according to new data from the Energy Information Administration (EIA).

To resolve the current rise of inflated gas prices, Biden ordered the Department of Energy Tuesday to release 50 millions barrels of oil from the U.S. Strategic Petroleum Reserve, which will reportedly provide 2-3 days worth of U.S. oil supply.

White House press secretary Jen Psaki told White House Fox News correspondent Peter Doocy that a “20 pound turkey” is not significantly pricier than in the past during Tuesday press conference.

“There are an abundance of turkeys available, they’re about $1 more for a 20 lb. bird, which is a huge bird if you’re feeding a very big family,” Paski said. “And that’s something that again, we’ve been working to make sure people have more money in their pockets to address it as the economy is turning back on.”

COLUMN BY

NICOLE SILVERIO

Contributor.

RELATED VIDEO: Rep. Crenshaw: This Administration Has Become a Joke and Inflation Isn’t Going Away Anytime Soon

RELATED ARTICLES:

Forgo The Turkey’: NBC Host Suggests Not Buying Thanksgiving Bird This Year As Prices Rise

Thanksgiving Gas Prices Hit Highest Level Since 2012

Over 75% Of Americans Say Inflation Is Affecting Them Personally, Poll Shows. Nearly 60% Blame Biden

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.

DeSantis blasts Biden, calls inflation a ‘huge problem,’ pledges gas tax relief

Nobody is fighting harder for the American people than Governor Ron DeSantis. DeSantis is taking on the Biden Administration at every turn, as he prepares for a possible run at the presidency in 2024. If President Trump can’t run for POTUS in 2024, than Governor DeSantis is unquestionably our candidate. And the Democrats should be very concerned about Joe Biden sharing a debate stage with the great governor. #DeSantis2024!

DeSantis calls inflation a ‘huge problem,’ pledges gas tax relief

By Local10.com, November 22, 2021

Gov. Ron DeSantis said Monday that the state legislature will pursue gas tax relief for Florida residents, calling inflation a “huge problem.”

At a news conference Monday morning in Daytona Beach, accompanied by the state’s Department of Transportation Secretary Kevin J. Thibault, DeSantis placed the blame on “inflationary policies out of Washington.”

“The price of a Thanksgiving dinner is up over 20% just over last year,” DeSantis said. “I think what’s most dramatic, because it affects most people in their daily lives, is gas prices going up.”

The average price for a gallon of regular unleaded gasoline in the state jumped 10 cents in the middle of last week to $3.36, according to the American Automobile Association, the highest price at any point since September 2014. It sat at $3.35 on Monday morning, six cents below the national average of $3.41.

https://twitter.com/GovRonDeSantis/status/1462810131624779776?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1462810131624779776%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fgellerreport.com%2F2021%2F11%2Fdesantis-blasts-biden-calls-inflation-a-huge-problem-pledges-gas-tax-relief.html%2F

RELATED TWEET:

EDITORS NOTE: This Geller Report column is republished with permission. ©All rights reserved.

Quick note: Tech giants are shutting us down. You know this. Twitter, LinkedIn, Google Adsense, Pinterest permanently banned us. Facebook, Google search et al have shadow-banned, suspended and deleted us from your news feeds. They are disappearing us. But we are here. We will not waver. We will not tire. We will not falter, and we will not fail. Freedom will prevail.

Subscribe to Geller Report newsletter here — it’s free and it’s critical NOW when informed decision making and opinion is essential to America’s survival. Share our posts on your social channels and with your email contacts. Fight the great fight.

Follow me on Gettr. I am there. It’s open and free.

Remember, YOU make the work possible. If you can, please contribute to Geller Report.