US leader sweats on high inflation's political cost

People vote with their pocketbooks, so the saying goes in the United States. That spells trouble for US President Joe Biden and his Democratic colleagues as they look ahead to the party's prospects in the midterm congressional elections in November.

How the economy is doing is often viewed from an individual's own circumstances. If you have a job, the economy is better for you than for someone who doesn't have one.

Finding a job in this economy is not difficult, however. Not only is the unemployment rate below 4 percent, many people are quitting their jobs in a reassessment of their life goals as the pandemic makes headway into a third year.

But the main issue for Biden is inflation, which crimps all consumers, but more so those in the middle and working classes. Consumer prices are rising at a pace of 7 percent a year－a level last seen in 1982.

Inflation is also hitting the purchasing power of the average worker, declining by 2.3 percent from December 2020 to December 2021, The New York Times reported.

"Mr Biden, however, has contributed to his own political woes. Through much of the fall, the president and other administration officials seemed to be downplaying the dangers of inflation," the Times Editorial Board wrote.

The Times also said that Biden has not acted in some areas that could help to corral inflation, such as the tariffs that former president Donald Trump imposed on Chinese imports, which still are in place.

The price of meat has soared, and gasoline is up almost a dollar a gallon (about 3.8 liters) on average nationwide from a year ago. And if you're a motorist looking for a used car, you're going to pay 46 percent more than in January last year, according to the Manheim Used Vehicle Value Index.

In a letter dated on Tuesday, the chairman of the US House of Representatives subcommittee on economic and consumer policy asked major meat processors for information regarding rising prices and profits on beef, pork and chicken. The companies were given until Feb 8 to respond.

Also contributing to inflation are supply chain disruptions brought about by resurgent demand after the initial easing of the first wave of the pandemic. Coupled with staffing shortages, some of which can be attributed to illnesses and various COVID-19 vaccine policies, fewer goods are making it to store shelves.

The latest challenge is the Omicron coronavirus variant, which has sickened many workers and further depleted strained workforces.

A CNN poll conducted in December by SSRS found that 72 percent of respondents say the government is not doing enough to reduce inflation. Fifty-four percent responded that they have changed grocery purchases to stay within budget.

According to a poll released by the Pew Research Center on Tuesday, the public's views of the economy remain largely negative; only 28 percent say economic conditions are excellent or good.

The Associated Press and Reuters contributed to this story.