Mitchell Oakley: Inflation still forcing many to make hard choices

Last week we heard another economic report. Guess what? Inflation surprised all the so-called experts. It rose again. The rate went to 3.5 percent, according to the Bureau of Labor Statistics. That same agency blames the increase on gasoline and housing.

Oil prices, of course, are being affected by the wars in Ukraine and Israel. Just think: That may get even worse after Iran seemingly entered a war with Israel as well. The high price of housing affects mortgage rates and rent.

Those of us going to the grocery store each week are hit in the wallet by rising prices and are seeing inflation’s impact on the shelves. When inflation dips, it doesn’t automatically mean prices go down. Once inflation affects an item, that item seldom falls in price — rather, the higher price becomes the new standard. In fact, I see many prices getting even higher every time I enter a grocery store.

Our president, however, believes the economy is just fine. There are some positive signs as it relates to businesses, but for all the positives enjoyed by businesses, there are many negatives affecting the pocketbooks of us Americans.

One report I heard on radio last week is that Americans are now paying about $12,000 more annually because of inflation. Just to keep up with the increase in the cost of living would require more than a $6 increase in hourly pay. E.J. Antoni, a Ph.D. and research fellow with the Heritage Foundation, tweeted on X, “The average weekly paycheck is over 14 percent bigger since January 2021, but it buys almost 4 percent less because of the massive loss of purchasing power.”

I guess that’s why I’m amused when President Joe Biden, said, “We have the best economy in the world,” in an April 1 story reported by MSN from Mediaite.

Al Roker, in what was called an “Easter Egg Chat,” asked the president about Americans believing their buck isn’t going as far as it once did.

“What do you say to those folks about the economy and what’s going on?” Roker asked.

Biden answered, “Well, I say we have the best economy in the world. We got to make it better but we really do have the best economy in the world.”

The question about how Americans are being affected by smaller buying power went unanswered.

Inflation has slowed, but it is not a thing of the past. It is still occurring and it erodes the buying power of a dollar. Those of us shopping for ourselves feel the pinch.

Just a few days ago I overheard a conversation that included a woman older than me who was concerned about making ends meet. She still works and was concerned about buying big-ticket items that she needs. I felt sad for her, and I feel sad for all of those on fixed incomes who are not seeing sufficient raises in their paychecks to offset inflationary prices.

Obviously, the political administration of the president in power most often gets blamed for inflation. Presidential policies, of course, can contribute but aren’t the sole reason.

In the case of recent years’ inflation, COVID impacted prices through shutdowns and an interruption of the supply chain. But, the biggest culprit, in my view, is the huge amounts of money Congress has expended, not only for COVID but for needless wars and foreign aid.

One thing is certain, folks: Federal spending is out of control, and we have not a soul willing to trim a bloated bureaucratic government that, in my view, enables Congress to keep spending.

But let’s set the record straight. Just because it is articulated doesn’t mean the economy is great for all Americans. Inflation is hurting Americans who are now having to make hard choices about where they put their dollars.