Without any plan or action to reduce inflation, consumer prices – led by rising costs in food, energy and housing – rose by 8.5% in March. This is higher than expected and the highest since 1981.
What’ more, the producer price index, which measures prices paid by wholesalers, rose 1.4% in March and 11.2% from a year ago, both records for data going back to 2010.
Unfortunately for American workers and families, Democrats and Republicans are both focused on doing nothing in the near term to change the direction of the economy.
The Republicans hope that doing nothing will keep the economy in terrible shape and help propel their candidates to election victory in November of 2022. The Democrats, on the other hand, are using the crisis to demand more extreme spending measures that do not have bipartisan support to imply that their efforts to stop inflation are being thwarted by the Republicans.
What you need to know about how rising prices are hurting workers and families
Real worker earnings fell by another 0.8% during the month of March as the cost of living outpaced gains in income.
The rising prices are the highest since the 1970s stagflation and the inflation of the late 1970s and early 1980s. Core inflation is the highest since August 1982 when the Reagan administration was forced to induce a recession to get inflation under control.
Housing costs increased another 0.5% in March and are 5% higher for the year, which is the highest since 1991. The cost of housing is expected to rise as rates are increasing – now at 5% in many cases.
Food costs are up 8.8% for the year.
Energy cost are up 32% for the year.
Used car and truck prices are up 35.3% for the year.
Interest rate hikes are in motion and set to increase the cost of borrowing for housing and businesses. Small business owners, which are struggling to find labor, will face increased costs, while entrepreneurs and start-up businesses will likely face difficulty borrowing money (as well as face steeper costs for loans).
Without a plan to help working families, small businesses and entrepreneurs, the Democrats and Republican are putting the economic well-being of tens of millions of Americans at risk.
The Reform Party of Virginia recommends that instead of spending more money and increasing inflation, that entrepreneurs and small businesses (including those engaged in the Great Resignation) receive tax breaks to off-set increased costs in healthcare, business technology, energy and other vital essentials for building wealth and profitable businesses. Large corporations have what they need to be competitive and provide better benefits to their employees. But entrepreneurs and small business owners are the life-blood of the American economy and need to be supported.