Joe Biden, Democrats just gave America a pay cut

There isn't a dispute that inflation is gutting people's purchasing power. With wages rising at 6.9% and inflation rising 7.5% year-over-year, that's a pay cut. Seema Shah, the chief strategist at Principal Global Investors, is quoted as saying "U.S. annual CPI is the highest since 1982, and what’s worse is that this likely isn’t the peak. Higher-than-expected monthly gains in core CPI indicate continued underlying heat and will do nothing to relieve pressure on the Fed to tighten sharply and urgently."

Earlier this week, Larry Kudlow took Treasury Secretary Janet Yellen to the woodshed for predicting that inflation would drop to 2% by the end of this year. The Fed is still adding to its balance sheet. It's predicted that when the Fed starts raising interest rates, they'll raise rates by timid amounts. What's required right now is Volcker and Reagan. Unfortunately, we've got Powell and Biden.

Price increases were widespread: Although energy prices rose just 0.9% in January from the previous month, they're still up 27% from last year. Gasoline, on average, costs 40% than it did last year. Food prices have also climbed 7% higher over the year, while used car and truck prices – a major component of the inflation increase – are up 40.5%. Shelter costs jumped 0.3% for the month and 4% year-over-year.

In his Super Bowl interview with NBC's Lester Holt, Joe Biden insisted that the vehicle computer chip shortage caused one-third of this month's inflation:

That's difficult to believe, especially when you consider the fact that "price increases were widespread." Inflation isn't limited to one type of product. Prices are higher across the spectrum. Energy prices keep spiking higher. Contrary to Joe Biden's statements, the truth is that gas prices are heading higher, not lower. When energy (higher gas prices, more expensive home heating bills, etc.) expenses keep rising, overall inflation won't come down anytime soon.

Then there's this admission:

"On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge," Biden said in a statement responding to the report.

That's understatement. It's nice that this administration finally admitted that its policies have created stress at the kitchen table. What's worse is that this administration hasn't admitted that their policies need to change. This administration's belief apppears to be that things will just improve with time.

The Biden administration's policies have given the nation a major pay cut. If things don't improve dramatically, which they won't, Democrats will take it at the polls this November. Period. Full stop.