Economists across the country are concerned that we may be heading towards the worst inflation crisis in modern history. “This is the biggest emerging economic crisis for consumers for over a decade. The average cost of living for a family of four is up about $5,000 a year so now it’s a choice between heating homes, feeding families, or giving gifts.” said Burt Flickinger, managing director of the Strategic Resource Group. Flickinger added that out-of-stocks caused by supply chain issues are at ‘the highest in 70 years’. Concerns about inflation come on the heels of Biden’s “Build Back Better” bill that would include $1.75 Trillion in social spending.
Some economists speculate that supply chain issues are being primarily being caused by an increase in gas prices. Just today, Los Angeles, Orange, and San Diego Counties recorded their highest increase in gas prices in 9 months. The gas prices are rapidly approaching LA County’s all time high of $4.70, currently standing at $4.62. At the recent COP26 Climate Change Conference, the Biden administration called for a shift away from fossil fuels. Despite this, Biden has pleaded for increased oil production from OPEC in the face of rising gas prices and runaway inflation. Since taking office, Biden has revoked permits for the Keystone XL pipeline, suspended oil drilling leases, and rejoined the Paris Climate Agreement.
Inflation and supply chain issues have been a major political headache for President Biden. Biden’s approval rating has slumped from over 50% at the beginning of the year to 36% in a recent Federalist/Susquehanna poll. The poll found that an even lower number of Americans approve of Biden’s handling of the economy, an abysmal 34%, while 51% disapprove. When Biden’s own Energy Secretary, Jennifer Granholm was questioned about rising gas prices, she laughed off the reporters concerns, calling them “hilarious”.