Inflation is whipped, except that the most significant cost for a typical person remains unaffordable (the “housing affordability crisis”), with government intervention required. The latest affordability crisis (i.e., Americans not being rich enough to afford what used to be considered American life) is for cars (San Jose Mercury News):
The good news is that expert assistance has arrived:
Bay Area residents wanting — or needing — to buy a car are steering this winter into what experts call an affordability crisis.
“The price of new cars, in general, has become alarming for a lot of people,” said Brian Moody, executive editor of Autotrader.com.
Nationwide, the average monthly payment for a new vehicle in November was $753, up more than 30% from just five years ago, said Jessica Caldwell, a head analyst at Edmunds, which tracks the auto industry.
Adding to buyers’ woes is the high price of most everything else. A recent Edmunds study found 54% of people surveyed who were planning to buy a new or used car in the next year said they would have to work extra hours or take a side job to afford it. “This wasn’t an issue 10 years ago,” Caldwell said.
Prior to the November 5, 2024 election, the same newspaper said that inflation was finished. October 31, 2024:
auto insurance rates is up to. By the way everyone knows but the insurance companies canceling home insurance in California, and in the same time auto insurance got canceled too.
Anyway would they would write now in we had Madam President now
I just renewed my 6-month full-coverage FL auto insurance with Progressive and it went down $10 (-1.1%)! $859 for six months, full coverage, for an ’01 Ford Taurus and an ’08 Honda Ridgeline. (But it was up 30% over the past three years!).
this is same as republicans(PhilG also) blaming Biden for the inflation even though Trump spent more money.
Under Trump
The Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Total $7.8B)
The Families First Coronavirus Response Act (Total $15.4B)
The Coronavirus Aid, Relief, and Economic Security Act, (CARES Act) (Total $2.1T)
Paycheck Protection Program and Health Care Enhancement Act (Total $483B)
under Biden
The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 Consolidated Appropriations Act, 2021 (Total $900B)
The American Rescue Plan of 2021 (Total $1.9T)
Under the Biden-Harris administration, nearly $180 billion was spent for student loan forgiveness. [1].
In summary, approximately 5 million people had about $36,000 each “forgiven.” Meanwhile, $0 was offered for my kids. Thanks, Biden-Harris!
[1] https://www.ed.gov/about/news/press-release/biden-harris-administration-approves-additional-428-billion-student-debt-relief-nearly-55000-public-service-workers-0
I refer to “Bidenflation” but don’t blame Biden. Congress and the Fed starting in 2009 are primarily to blame I’d say. Same pattern as in the late 1970s. Hamas ambassador Jimmy Carter coincided with the inflation, but it was Lyndon Johnson who created it 12 years earlier with the expanded welfare state and Vietnam War. I guess it would be more accurate to blame Congress back then as well because they actually voted to set up Medicaid, Medicare, etc.
@phil I am assuming you will start referring it as “Trumpflation” starting Jan 20th
Under Trump, corporations re-repatriated monetary holdings and hired Americans. And foreign considerations expanded greatly in America. Hence Trump spending was offset by value creation in the US. Inflation under Trump first term was minimal, I expected higher prices but for example annual new car price hikes under Trump first coming was even smaller then regular $1,000/year for new models. Trump and his people obviously new what they were doing, even after corona-panic got the best of Trump.
Biden has little excuse to show for his economic malfeasance, he was increasing spending after threat of coronavirus diminished. Corporations moved back overseas, US investment stalled. Most of the inflationary, no value created, years Biden and his team spent worsening economic situation and arguing that there was no inflation.
Will see how second Trump administration pays out.
typo corrections:
“foreign considerations expanded greatly” = “foreign corporations expanded greatly”
“obviously new what they were doing = “obviously knew what they were doing”
The reality of government debt of 2-3x GDP. They’ll keep offsetting rising car prices with falling wages.
Inflation. Caused by the government printing too much money – mostly to fund unpopular wars. This pattern has been going on for centuries. There is nothing new under the sun.
In addition, they’ve practically eliminated basic inexpensive cars from the marketplace. Every car is now filled with electronics and sensors, driving up initial cost and especially repairs.
Holding on to my ’01 Ford and ’08 Honda as long as possible!
Holding on to my 24-year old Ford and 17-year old Honda as long as possible!
A household is “rent burdened” when it spends more than 30% of its income on rent and utilities. A household is “severely rent burdened” when it spends more than 50% of its income on these expenses.
Toucan Sam wants to know what about being tax burdened. Why is this not a thing?
> Toucan Sam wants to know what about being tax burdened. Why is this not a thing?
It is a thing. Many Americans don’t have any tax burden. Those who rely on welfare, government housing, or programs like the Obama-phone to name some. Sadly, folks like you and me don’t qualify — we’re not “dumb-dumb” enough to qualify!
Something like 50% of working Americans pay zero federal income tax. Tens of millions of working Americans not only pay zero federal income tax, they also receive fully-refunded tax credits (i.e., EITC, child care tax credit – direct welfare cash payments masqueraded as a fake tax refund).
Turns out that if you want more affordable housing you have to build more unaffordable housing.
https://reason.com/2025/01/07/why-building-a-lot-of-affordable-housing-is-bad-news-for-affordability/