BIDENFLATION:
Not only did wholesale inflation for Nov come in red hot, but the last 3 months were also revised higher; headline exploded 0.4% M/M, pushing Y/Y to 3.0% while core (pictured here) jumped to 3.4% Y/Y and continues rising much faster than the pre-Jan '21 average: pic.twitter.com/whyLnc7aXI
— E.J. Antoni, Ph.D. (@RealEJAntoni) December 12, 2024
I’ve been arguing for a while now that there’s still plenty of inflation baked in, thanks to Biden’s big spending bills — especially (and ironically) the Inflation Reduction Act.
More: IRA, Meet DOGE.
It’s no secret that the IRA was designed to achieve an “energy transition”—after passage, it was proudly hailed as the Green New Deal. According to the Biden administration, the law is “the single largest investment in climate and energy in American history.” True: in inflation-adjusted terms, it will cost more than it did to prosecute World War II.
It’s hard to overstate the inflationary impact of such a staggering scale of government spending, not to mention the massive opportunities for waste and fraud. And, in no small irony, the IRA promotes and subsidizes technologies and programs that will make energy more expensive, which will also fuel inflation. For evidence that such efforts radically raise energy costs, look across the Atlantic, to Germany and the United Kingdom, both further down the “transition” path the IRA envisions. High-cost energy in both countries has caused consumers to suffer and businesses to flee, with Germany in particular undergoing de-industrialization.
The DOGE boys have their work cut out for them, particularly since, as the article notes, IRA money “goes to all 50 states, with ‘red’ states being the biggest beneficiaries of the government gusher.”
Biden screwed us pretty good.