Why is inflation increasing so much? Here’s the answer in 60 seconds.
News outlets across the country reported this week that inflation rose 9.1% in June, which was higher than expected.
This historic inflation – felt by everyday Americans at the gas station and the grocery store – has left many people wondering: Why is inflation increasing?
As Americans for Prosperity’s Senior Fellow for Fiscal Policy, Kurt Couchman, explains in the above video, “This is a problem created by our government.”
Washington is engaging in too much reckless spending. Here’s a three-step breakdown that explains why inflation is increasing:
- Congress spends too much, and Congress borrows too much.
- When that happens, the Federal Reserve prints money to cover it.
- The more the Federal Reserve prints, the less our money is worth and the more everything costs.
And Americans are feeling the pain of this historic inflation. “You shouldn’t have to choose between filling your gas tank up or feeding your family,” one woman told us at a recent True Cost of Washington event.
This pain is only amplified by punishing regulatory policies. Couchman says,
“There are all these regulations out there that make it harder for businesses to provide things at affordable costs. At the end of the day, we’re the ones paying more and getting less.”
To help offset the damage done by increasing inflation and the high cost of gas in 2022, Americans for Prosperity has been providing discounted gas to customers at gas stations across the country.
This effort is part of our True Cost of Washington Tour to connect Americans to how Washington’s failed policies are driving up inflation and making life harder for everyone.
Through the Tour, we’re also advocating alternative solutions that would unleash American energy, spark innovation, and empower Americans with more freedom and opportunity to succeed.
Join the True Cost of Washington Tour today to help make life more affordable for all.
