Source: United States Senator for South Dakota John Thune
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U.S. Sen. John Thune (R-S.D.) today discussed how the Democrats’ self-inflicted inflation crisis is hurting South Dakota families, and he noted that South Dakotans have received a de facto pay cut due to rising costs of goods and services.
Excerpts of Thune’s remarks below:
“Mr. President, the AP headline from last Thursday said it all: ‘U.S. inflation highest in 40 years, with no letup in sight.’
“‘With no letup in sight.’
“That’s life in Democrats’ America.
“In January U.S. inflation hit 7.5 percent – the highest inflation since February 1982.
“Inflation has now been above 5 percent for the past eight months.
“There are people raising families today who have never experienced this kind of inflation in their entire lifetimes.
“American families are hurting, Mr. President.
“Hurting badly.
“The average American household spent an estimated $3,500 more last year as a result of inflation.
“$3,500.
“That’s a lot of money for an ordinary family. A lot.
“Everywhere they turn, families are facing higher prices.
“Whether it’s ground beef for the chili, bunk beds for the kids’ room, or a new car to accommodate a new addition to the family, higher prices are the order of the day.
“The price of chicken is up 10 percent.
“Pork is up 14 percent.
“Beef roasts are up 19 percent.
“Eggs are up 13 percent.
“Citrus fruits are up 10 percent.
“Whole milk is up 8 percent.
“And the list goes on.
“Furniture and bedding are up 17 percent.
“Major appliances are up almost 10 percent.
“Tires are up 14 percent.
“Used cars and trucks are up 40 percent.
“Then there’s energy prices.
“Fuel oil is up 46 percent.
“Gas prices are up 40 percent.
“Natural gas is up nearly 24 percent.
“And on and on and on.
“And, predictably, Mr. President, inflation is having its biggest impact on those least able to afford it.
“A recent Penn-Wharton Budget Model study found that lower-income households, on average, faced an even greater spending increase in 2021 when compared to higher-income households as a result of inflation.
“It’s no wonder 69 percent of Americans disapprove of the president’s handling of inflation.
“Mr. President, Democrats have talked about wage growth.
“Well, here’s the story on wages.
“Despite wage growth, Americans received a de facto pay cut in 2021 thanks to inflation.
“Between January 2021 and January 2022, real average hourly earnings declined by 1.7 percent.
“So how did we get here, Mr. President?
“Well, obviously the reopening of economies and supply chain issues have created inflationary pressures for the United States and countries around the world.
“But a big part of the reason things are so bad in the United States today is because Democrats decided to pass a massive so-called COVID relief bill last March that far exceeded anything the economy needed.
“That’s right.
“When Democrats took office last January, inflation was at 1.4 percent – well within the Fed’s target inflation rate of 2 percent.
“And it might have stayed there, had Democrats not decided that they needed to pass a massive, partisan, $1.9-trillion spending spree under the guise of COVID relief – mere weeks after Congress had already passed a major COVID bill.
“Mr. President, the definition of inflation is too many dollars chasing too few goods and services.
“And that’s exactly the situation Democrats helped create with their so-called American Rescue Plan.
“They sent too many federal dollars into the economy – and the economy overheated as a result.
“And you don’t have to take my word for it.
“Let me just quote a recent New York Times article:
“‘The United States has had much more inflation than almost any other advanced economy in the world,’ said Jason Furman, an economist at Harvard University and former Obama administration economic adviser, who used comparable methodologies to look across areas and concluded that U.S. price increases have been consistently faster. The difference, he said, comes because ‘the United States’ stimulus is in a category of its own.’
“And yet despite all this, Mr. President – despite the fact that it was Democrats’ massive March spending spree that helped plunge our economy into this inflation crisis – there are still Democrats out there who want to double down on the strategy that helped get us into this mess in the first place and pass another massive spending spree that would undoubtedly make this inflation disaster even worse.
“‘U.S. inflation highest in 40 years, with no letup in sight.’
“‘With no letup in sight.’
“That’s where Democrat policies have gotten us, Mr. President.
“And that’s the grim outlook for American families in Democrats’ America.”