Economic indicators releasedย Wednesdayย show that U.S.ย annualย inflation hit aย more thanย three-decade high in October. The economy continues to suffer from the Biden administration's reckless spending and federal regulationsย thatย stifleย any opportunity for growth.ย
SEE ALSO: Surprised Biden Unsure of How to Deal With Skyrocketing Inflation
Joel Griffith,ย researchย fellow atย Heritage'sย Roe Instituteโฏfor Economic Policy Studies,ย madeย the followingโฏstatementโฏin response toย theย dismal economic indicators:
โThe cost of living increased at the steepest rate in more than three decades this past year.ย Consumer prices jumped another 0.9% in Octoberโan astounding 11.3% rate compoundedย annually. That'sย aย 6.2% increase compared to last October.
โThe causes are rooted in supply chain bottlenecks caused by continued COVIDย vaccineย mandates, union resistance to expediting port operations, and tightening environmental regulations onย theย trucking industry. Labor market problemsโdriven largely by government policies such as generous COVID relief benefits, sporadic school closures, and now vaccine mandatesโalso contribute to rising costs. Adding to the pressure, the gusher of federal spending is spurring demand while other government policies continue to suppress supplyโincluding the supply of affordable energy.
โGiven the prolific government spending underway and the trillions of additional spending proposed, Americans have good reason to worry about inflation from โtoo many dollars chasing too few goods.'
โInflationย isย a hidden taxย thatย robs Americansย of productivity gains,ย makesย real wages lower than they otherwise would have been, andย distortsย price signals vital toย ensuring workers,ย investments, technology, and natural resources areย used in a mannerย most responsive to the real needs of the market.
โAmerica's central bank contributes to the steep rise in prices by using trillions of dollars of newly created fiat currency to finance federal spending by purchasing government bonds in addition to injecting enormous sums into the financial markets by purchasing other assets.
โThe enormous expansions of government spending proposed by theย left will come at a cost.ย Americansย will pay either through direct taxation, higher borrowing costs (as the government competes with businesses for available capital), or the hidden tax of inflation as the central bank purchases government debt.ย This inflation tax can be the most destructive and painful of all.โ
SEE ALSO: Biden Administration Admits Inflation Will Only Get Worse, Blames Americans for Spending
The opinions expressed in this article are those of the author and do not necessarily reflect the positions ofย American Liberty News.