Joe Biden has been out of office for almost two years now — so why does everything still feel so expensive?
As midterm elections draw nearer, that’s the question on the top of American minds, and BlazeTV host Ron Simmons has some answers.
While prices are up, Simmons points out that this all began under Biden, where “prices rose about 21%.”
“That’s over 5% a year. And since that time, since the second administration of President Trump, they’ve grown a little over 2% a year, about 2.5% a year,” he explains.
“When prices grew to 21%, so if something cost a dollar and then when Biden left it cost a $1.20, it didn’t go back down to a dollar when President Trump got elected,” he says.
“What he has done, and his administration have done, is they’ve just reduced how fast it’s increasing,” he adds.
Simmons explains that prices will go down when demand goes down.
“If you remember back to 2008, 2009, when they had the huge housing crisis, well, in 2007, do you know what interest rates were for mortgages at that time? Guess what they were. They’re right what they are right now, a little over 6%,” he explains.
“People lost their jobs and things, and there was more supply than there was demand,” he continues. “So they dropped interest rates and they brought interest rates down, probably too low, honestly — artificially low — and so you could buy a house at a 3% mortgage.”
“Then when the economy got better, and the fact that we pumped a lot of unnecessary money into the economy, interest rates went up because there ended up being more demand than there was supply,” he adds.
When the demand is high, the interest rates remain high.
“Now, what we don’t want to happen is another huge recession, obviously, but just remember how this happened,” he says, pointing out that Democrat policies have led us here.
“Housing has become dramatically more expensive during the Biden years,” he continues, noting that the Heritage Foundation has reported that the cost of financing a medium-priced home has risen 114% since 2021.
“At the same time, consumer prices have risen about 20%, which we talked about, and it costs about $13,300 more per year to purchase the same house, interest-rate-wise, than it did in 2021,” he says.
“Immigration was a part of this,” he explains. “When they opened the floodgates, more people coming into the country means there’s more demand for goods and services, and that increased the cost of living and housing.”
However, Simmons points out that the most expensive cities — San Francisco, Los Angeles, San Jose, New York, and Boston — are all run by Democrats.
“So just remember when you’re voting this time,” he adds.
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[H/T Blaze Media]
