New inflation numbers for October 2021 are here and show an increase in prices not seen since 1990. Making matters worse, wages are decreasing.
"The erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings for all employees decreased 0.5 percent from September to October, seasonally adjusted. Real average weekly earnings decreased 0.9 percent over the month and hours worked in the average workweek decreased by 0.3 percent. In the past year, since October 2020, real average hourly earnings decreased 1.2 percent, seasonally adjusted," Americans for Tax Reform states. "People are working less and earning less while inflation surges, meaning that purchasing power is being eroded."
President Joe Biden responded to the numbers Wednesday morning by insisting the federal government should spend an additional $1.7 trillion dollars on his Build Back Better Agenda.
"On inflation, today’s report shows an increase over last month. Inflation hurts Americans pocketbooks, and reversing this trend is a top priority for me," Biden said in a statement. "I want to reemphasize my commitment to the independence of the federal reserve to monitor inflation, and take steps necessary to combat it."
"Price increases reflect the ongoing struggle to restore smooth operations in the economy in the restart: I am travelling to Baltimore today to highlight how my Infrastructure Bill will bring down these costs, reduce these bottlenecks, and make goods more available and less costly," he continued. "Going forward, it is important that Congress pass my Build Back Better plan."
West Virginia Senator Joe Manchin, who has opposed Biden's spending spree, is pouring cold water over that idea.