LARRY KUDLOW: Work harder, buy less— this is the failure of Bidenomics

We have more news on the House impeachment Inquiry and breaking news on Mitt Romney's retirement from the Senate, but let me first begin with a new failure of Bidenomics.  

Today's August CPI report shows that inflation has accelerated for the second consecutive month in August, with the largest monthly increase in a year.   

The CPI jumped 0.6% -- which is an annualized rate of 7.8%. Actually, the 12-month change has gone from a low of 3.0% to 3.2% and now 3.7%.  Of course, this is still way below the 9.1% peak of last year, but the concern is that the numbers are now going in the wrong direction.   

Noteworthy is the fact that during Joe Bidenomics' term so far the level of the CPI has increased a whopping 17%. But if that weren't bad enough, grocery prices are up 20%, electricity up 26%, gasoline 62%, and throw in the 30-year mortgage rate, which started at 2.65% and is now 7.75% – just in case you were thinking about buying a new home. 

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This gets to the key issue of declining affordability during the Biden years.  With the cumulative inflation hike, new Census Bureau Numbers show that last year real household median income fell 2.3%. The worst since the Obama-Biden days of 2010.  Real family household income dropped 2.9%.   

The poverty rate is all the way up to 11.5%, holding last year's level. That's 37.9 million people in poverty. Hat tip to Breitbart's John Carney. During the Trump years, the pre-pandemic 2019 poverty rate had fallen to 10.5%, or 34 million people.   

Additionally, real median income, which rose over $6,000 pre-pandemic during the Trump years, has fallen roughly $4,000 during the Biden years. This is another lack-of-affordability measure. Folks are working, but their real incomes are falling. Work harder, buy less. This is the failure of Bidenomics.   

Then of course, one definition of Bidenomics is the goal of destroying fossil fuels, including gas-powered cars.  While OPEC+ (which includes Iran, Venezuela, Russia, and the Saudis) extend their production cuts, Bidenomics has frozen drilling in large parts of Alaska and the Gulf of Mexico. The rig count is way down.   

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In other words, future production cuts from Biden to match the actions of our OPEC+ adversaries. So, world oil prices are now back to $92 a barrel and AAA’s national gasoline average is up to $3.85.   

When Joe Bidenomics was inaugurated, world oil prices were $54 a barrel and gasoline was $2.39. You do the math.  This is another loss of household affordability. Add it all up and Bidenomics has about a 35% approval today in the polls.  Save America. Retire Joe Bidenomics.  

This article is adapted from Larry Kudlow’s opening commentary on the September 13, 2023, edition of "Kudlow."