I recently read an article blaming Republicans for the higher cost of living in Montana without providing any data to back it up other than to state “they cater to the political donor class.”
It failed to mention that during the Biden administration (2021–2025) inflation reached the highest levels in four decades. While inflation cooled from its 2022 peak, the cumulative increase in prices remained a major economic and political issue throughout the term, with prices rising over 20% total from January 2021 to early 2025.
Key Inflation Data and Trends
• Peak Inflation: Consumer Price Index (CPI) inflation peaked at 9.1% in June 2022, the highest rate since 1981.
• Average Rate: Biden’s four years saw an average annual inflation rate near 5%.
• Cooling Period: Following the peak, inflation decreased to 3% by June 2023 and dropped to roughly 2.9% by early 2025.
• Cumulative Increase: From January 2021 to early 2025, cumulative inflation reached approximately 21%, meaning prices for goods and services rose by that amount overall.
• Declining Real Wages: For much of the term, inflation outpaced wage growth, reducing the purchasing power of American households.
• Cost of Living: Grocery prices rose by nearly 20% over the four years, and housing costs increased significantly.
• Interest Rates: The Federal Reserve raised interest rates at the fastest pace since the 1980s to combat inflation, with the Fed Funds Rate reaching 5.25-5.5%.
• Compared to Previous Administration: Inflation was higher than during the Trump administration, where it averaged roughly 1.9%.
How did Covid-19 era policies affect the economy?
The American Rescue Plan (ARP) of 2021 contributed to record-high inflation by overheating the economy with excessive stimulus, exacerbated worker shortages, and resulted in mismanaged or wasteful spending at state and local levels. The $1.9 trillion price tag was poorly targeted, failed to deliver promised job growth, and functioned more as a temporary “Band-Aid” rather than a structural economic solution.
Blue states like California took an aggressive stances toward the epidemic, including imposing the earliest shelter-in-place order in the nation; ceasing in-person schooling for the vast majority of public-school kids; shuttering churches, parks, and playgrounds; mandating masks, with hefty fines for violators; and forcing the closure of “non-essential” businesses that cannot operate using distancing technologies, such as videoconferencing.
Because of these authoritative policies Montana became a destination for those looking to escape. If you’re looking a reason as to why property costs skyrocketed look no further than Democrats forcing folks all over the country to leave their homes in search of freedoms we maintained thankfully due to Montana’s Republican leadership.
It will take time to undo the disaster that was the Biden administration. Laying blame on a poor economy can be made on the current administration when enough time is given to fix what they inherited.
Please remember a true story has a beginning, a middle and an end. Those who seek to start in the middle or end typically use generalizations without substance to make their case and should not be taken seriously. We are inundated with propaganda everyday with empty talking points that lack any substantive information. Enthusiasm is great when based on the whole story.
Chris Foland lives in Kalispell.