Biden-Kamala: Responsible for the increase in the prices of the Basic Basket
Biden and Kamala Harris are the most responsible for the increase in the price of basic basket of goods in the US.
1. Introduction
1.1 General Context
During the tenure of the Biden-Kamala regime, the United States has experienced the largest increase in market basket prices in its history, which has generated concern among consumers and has been the subject of intense political and economic debate. This phenomenon has unfolded during the 42 months of the Biden-Harris administration, which has provoked an unprecedented catastrophic period in the nation, due to its abysmal administrative management and the implementation of its neo-Marxist policies.
1.2 Aim of the Article
The aim of this article is to analyze the increase in the prices of the basic food basket in the United States during the aforementioned period. It will examine the possible causes of this situation, including economic factors and the specific policy decisions of the current administration. Special attention will also be paid to the energy policies implemented and their potential impact on food and other commodity inflation.
2. Inflation in the United States
2.1 Food Inflation Data
From the start of the Biden-Harris administration in January 2021 to the cut-off date of this analysis (April 2024), the United States has experienced a significantly elevated rate of food inflation. According to data from the Bureau of Labor Statistics (BLS), the consumer price index (CPI) for food has shown a cumulative increase above the historical average.
Food prices have risen about 25% in the last four years while Biden and Kamala have been in office.
According to data provided by Save the Children, at least 17% of children in the country are not receiving the food and care essential for their proper development
In an interview with the Voice of America, Mariana Joyal, media and alliances manager of the organization No Kid Hungry, an American organization that ensures the nutritional well-being of minors, points out that the data is very “critical” since “one in five children in the United States lives with hunger.”
“In the case of Latino children, it is almost double, it is more than one in three,” Joyal adds in this regard.
- In 2021, annual food inflation was 3.9%.
- In 2022, it rose to 9.9%, the highest rate since 1979.
- In 2023, although moderating, it remained above 4%.
- Although the CPI consumer price index has declined according to statistics, food prices remain at the same level of 25%.
An increasing number of people are turning to food donation centers for help to cover the basic needs of their homes.
2.2 Historical Comparison
This period of sustained food inflation is remarkable for its duration and intensity in the years of the Bidee-Kamala administration. Compared to previous periods:
- It is the highest sustained rate of food inflation since the energy crisis of the 1970s.
- Exceeds the levels of inflation seen during the financial crisis of 2008-2009
- This represents a significant change from the previous decade, characterized by relatively low and stable inflation
The current administration tries to justify its incompetence by pointing out that this inflationary trend is not unique to the United States, but is part of a global phenomenon, just as the dictatorial regimes of Cuba and Venezuela do, looking for a culprit other than their political and economic incompetence.
3. Analysis of the Justifications
3.1 Global Economic Factors
Let us unmask some of the global inflationary pressure factors they use to justify their mismanagement:
- Supply chain disruptions: The COVID-19 pandemic is the single cause that caused significant disruptions in global supply chains, affecting the production and distribution of food and other basic goods.
- Rising transportation costs: Rising fuel prices are a consequence of the nefarious energy policies of the Biden-Harris duo in hindering and reducing US conventional energy production that have driven up fuel costs considerably, resulting in a huge increase in transportation costs and thus in all consumer products.
- They try to justify their economic administrative shortcomings by blaming weather events that have always existed: droughts, floods and other weather phenomena have affected agricultural production around the world.
- They try to justify their political shortcomings by blaming geopolitical conflicts that have been generated by their weakness in the face of traditional enemies Russia, China, Iran and their international henchmen who have generated the conflicts in Ukraine and other latitudes that have affected the global supply of cereals and fertilizers.
3.2 Political and Economic Decisions of the Biden-Harris Administration
A number of policies implemented by the current administration have been identified as factors that may have contributed to inflationary pressure:
- Economic stimulus: Economic aid packages, while necessary to address the COVID-19 crisis, have been criticized by some economists for increasing demand and potentially contributing to inflation.
- Expansionary monetary policy: Although not directly controlled by the administration, the Federal Reserve's policy of maintaining low interest rates for an extended period has been associated with rising inflation.
- Labor regulations: Policies aimed at raising wages and improving working conditions may have contributed to increased costs for businesses.
3.3 Migration Crisis and Its Economic Impact
The Biden-Harris administration is facing the biggest migration crisis in recent US history, generated by themselves by repealing all the control measures imposed by Trump, they implemented executive measures that practically opened the borders without any control, encouraging the illegal passage into the United States not only of asylum-seeking immigrants and illegal immigrant workers, but also of criminals of all kinds, drug and human traffickers, as well as spies of enemy powers with the aim of obtaining votes. This situation has had major economic implications contributing to inflation and rising prices:
- Pressure on border resources:
- Significant increase in federal spending for border management and processing asylum claims.
- Need to expand detention facilities and hire additional staff.
- Overburdening of the immigration system:
- Increased administrative costs to process an unprecedented number of immigration cases.
- Delays in processing may result in additional costs in the long run.
- Increased social costs:
- Increased spending on social assistance programs, including temporary housing, food and medical care for asylum seekers and other immigrants.
- Additional pressure on education and health systems in communities receiving large numbers of migrants.
- Impact on the labor market:
- Increased supply of very cheap migrant labor, affecting the wages of US workers and legal residents.
- Costs associated with integrating new workers into the economy.
- Increased government spending:
- Additional budget allocations to address the migration crisis.
- Possible contribution to the federal deficit, which could have long-term inflationary implications.
- Effects on local economies:
- Border communities and destination cities have experienced increased costs associated with providing services to a growing population.
- Impact on local real estate markets and demand for basic goods and services.
It is important to note that the economic impact of immigration is a complex and debated issue. In the short and medium term, the costs associated with managing the migration crisis have increased enormously, although some economists close to globalism claim that mass immigration can have positive long-term effects on economic growth, this justification factor is ruled out by the huge mass of immigrants who have entered and continue to enter illegally due to the lack of control of the Biden-Kamala regime.
In the context of current inflation, the increase in government spending related to the migration crisis, combined with the additional pressure on resources and services being allocated, is a factor that continues to contribute to the increase in overall inflation rates that the US economy has experienced since Biden and Kamala took office and which they have failed to address, as they are more interested in maintaining the situation to gain more votes in elections, especially in states where ID is not required to vote.
4. Energy Policies and Their Impact
4.1 Fossil Fuel Restrictions
The Biden-Harris administration has implemented absurd and uneconomical policies aimed at reducing dependence on fossil fuels, in line with the goals of combating supposed climate change:
- Suspension of new leases for oil and gas drilling on federal lands.
- Cancellation of the Keystone XL pipeline.
- Implementation of stricter emissions regulations.
- Green New Deal and bans on hydraulic fracturing (fracking) that have limited the increase of oil and natural gas production in the US.
These measures taken by the administration have been the root causes of rising energy prices, which has a cascading effect on the entire economy, including food production and transportation costs.
4.2 Boosting Renewable Energies
The administration has actively promoted the transition to renewable energy:
- Significant investments in infrastructure to promote inefficient and super-expensive clean energy.
- Fiscal incentives for the adoption of green technologies.
- Super-ambitious emission reduction targets that make no economic sense.
Although the theorists and promoters of these policies claim that in the long term, they will reduce energy costs and mitigate climate change, the economic cost in the short and medium term is so great that the transition costs have a direct impact on the prices consumers have to pay today. Therefore, with these failed policies it will be impossible to reduce the runaway inflation that is affecting the current economy, putting the future development and security of the United States at risk.
4.3 Effects on Energy Prices and Their Relationship to Inflation
The impact of these policies on energy prices is a matter of debate:
- Rising gasoline prices: significant price increases have been observed since the Biden-Harris administration took office.
- Volatility in natural gas prices: This has resulted in significant price increases in electricity generation and heating.
- Energy transition costs: The implementation of new green technologies has resulted in high costs that ultimately affect consumers' wallets.
The relationship between energy prices and overall inflation is complex, but they significantly influence the production and distribution costs of food and other basic consumer goods.
5. Effects on US Consumers
5.1 Impact on Purchasing Power
The sustained increase in market basket prices has had a significant impact on the purchasing power of US consumers:
- Reduced real purchasing power: Wage increases have not kept pace with inflation in most sectors.
- Increased share of income going to basic necessities: Especially for low- and middle-income households.
- Declining savings: Many households have had to dip into savings or increase debt to maintain their standard of living.
- Many low-income families have fallen into poverty to the point that many families are now unable to consume three portions of food a day.
5.2 Changes in Consumption Habits
Consumers have adapted their purchasing behavior in response to inflation:
- Product substitution: Shift towards cheaper options or private labels.
- Reduction in consumption of certain foods: Especially in categories that have experienced higher price increases, such as meat, dairy products and eggs.
- The financially well-off have increased their bulk purchases to take advantage of bargains.
- Increased attention to energy efficiency in the home to reduce costs by varying the comfort of their quality of life.
5.3 Most Affected Groups
The impact of inflation has not been uniform across the population:
- Low-income households: have been the most affected, as they spend a higher proportion of their income on food and energy.
- Pensioners and people on fixed incomes: Their incomes often do not keep pace with inflation.
- Rural communities: Often face higher transport costs and fewer shopping options.
- Young families: Especially affected by rising housing and childcare costs.
6. Conclusions
6.1 Summary of Key Findings
- US basket inflation has reached levels not seen in decades during the first 42 months of the Biden-Harris administration.
- The causes are the shortcomings and incompetence of the current administration's specific economic and energy policies.
- Energy policies, oriented towards climate change and green energy, have been one of the root causes because of their impact on high short- and medium-term costs.
- Consumers have experienced a reduction in their purchasing power and have had to adapt their food consumption habits and quality of life.
6.2 Future Perspectives
- The evolution of inflation will depend on multiple factors, including the resolution of energy and migration issues generated by the current administration and the success of the Federal Reserve's policies.
- The long-term impact of energy policies to replace fossil fuels and traditional sources with green techniques on prices and the economy, in general, remains uncertain due to their technological inefficiency and high costs compared to available traditional sources.
- The adaptability of consumers and businesses will be crucial to navigate the current economic environment.
6.3 Final Considerations
The rise in US basket prices is a complex phenomenon with multiple causes and effects. The neo-Marxist globalist policies of the Biden-Harris administration have been the fundamental contributing factors to the current crisis and must be replaced by a more conservative and nationalist administration to emerge from the economic and national security decline we are experiencing today. There is no other challenge than to change the current neo-Marxist regime to address the immediate economic needs of the population and return to a Donald Trump-like government to Make America Great Again.
