While I think that the framing of inflation as “the Biden tax” by Alfred Ortiz in his post at RealClearPolitics is political posturing, I also think that the underlying point is sound. Inflation does fall heaviest on the poor and people earning middle incomes:
Inflation acts the same way as a tax by reducing the value of earnings. It devastates retirees and those on fixed incomes by making them poorer through no fault of their own. And it hurts small businesses, which must constantly raise prices, reducing sales and alienating customers.
It does so in multiple ways. Not only do they not have the excess income to adjust to inflation they are not as well-positioned to seek other jobs or to ask for raises. And raises may not be forthcoming because it’s cheaper to automate their jobs away.
Add this to the mitigation plan—without increasing spending which will merely aggravate the problem—which I keep on asking for in the full recognition that no such plan will ever be proposed.
I’m familiar with grocers, who love inflation. They can raise the price on inventory, as if they had paid the scheduled increase.
OTOH.
Retirees are always hit hard by inflation, unless they had the foresight or fortune to be in real estate.
The Biden Administration is cruel. Not dumb, cruel.