Bidens Child-Poverty Progress Isnt Real – The Wall Street Journal

Among the Biden administrations favorite claims is that it has cut child poverty in half. True, the $1.9 trillion American Rescue Plan increased the amount of the child tax credit and made advance payments to those who qualify, putting money into the hands of many poorer Americans. But the size of a government check doesnt matter so much as what you can buy with it. Doubling your income is worthless if everything you have to buy is suddenly twice as expensive.

The advance payments to alleviate child poverty were partly or fully eroded by the higher prices caused by President Bidens policy trifecta of increased demand, crimped supply and an accommodative monetary policy. This years resulting 6.8% rise in the consumer-price index isnt likely to slow down, particularly since 40% of core CPI is shelter, composed of rent and owners equivalent rent. This measure lags behind housing prices, which are booming. The 9.6% gain in producer prices will also eventually will be pushed on to consumers.

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Bidens Child-Poverty Progress Isnt Real - The Wall Street Journal