With prices rising by 5.4% in July compared to a year ago, a spike not reported by the Bureau of Labor Statistics since the Great Recession started in summer 2008, now is not the time to pass $3.5 trillion in more government spending that inflates prices—hitting poor and minority families hardest.
In the early hours of Wednesday morning, Senate Democrats passed a budget measure clearing the way for them to advance a hyper-partisan, $3.5 trillion spending plan in coming weeks. This spending blueprint was released less than 24 hours prior, with lawmakers showing a shocking lack of transparency around such a massive undertaking.
The more government spending, the more the inflation keeps creeping up and devaluing the U.S. dollar. Americans realize this. May 2021 polling by Harvard University with HarrisX found “massive government spending” was what Americans believe is the top cause for inflation. That was followed by “significant” injections of money by the federal reserve and thirdly, “uncontrollable government deficits.”
Soaring food prices under Biden hurt minority families most, Bloomberg News reported. A recent Bloomberg News/Morning Consult survey shows about one in three Americans are spending more on groceries. A majority of U.S. adults said they are paying higher prices for red meat, chicken, fruit, toilet paper, and milk. Shoppers buying red meat were the most likely to report higher prices.
More than 40% of black respondents reported higher costs at grocery stores in 2021. Morning Consult economist John Leer said minority communities are being hit harder because of the disproportionate impact of the pandemic. With job cuts and less income, more meals are being made at home causing higher grocery store bills.
For the U.S. government to keep spending on “human infrastructure” intended to help the vulnerable is shooting us in the foot in terms of actually helping the poor. It perpetuates a cycle of dependency rather than helping Americans stabilize and create generational wealth.