Joe Biden has a delicate relationship with inflation. Despite denying the increase in prices during his administration, going so far as to claim that he inherited a monthly inflation of 9% when in reality it was 1.4%, households have been spending hundreds of extra dollars since the Democrat began his administration. However, a recent comparison showed the disproportionate effect of its policies on fast food.
Indeed, according to a survey on the prices of McDonald's and Taco Bell between 2019 and 2024, the last part of the Trump administration and the entire Biden administration, it showed a price increase well above the inflation accumulated since then.
For example, in the case of McDonald's, their famous Big Mac saw an increase of 87% during this period. Although it may seem high, it turned out to be quite a bit lower than several other products: the cheeseburger (215%) , McChicken (201%) and medium fries (134%).
Unbelievable! pic.twitter.com/tJc71LleHI
— Luis H Ball (@ball1_ball) May 22, 2024
As for Taco Bell, the product that increased the most since 2019 was its five-layer burrito, which rose 118%. Second place went to 'Bellgrande' nachos, which increased by 79%. The podium was rounded out by the 'Crunchwrap Supreme' with 51%.
"Fast food as a luxury"
As reported by Bloomberg News, the high prices of fast food are leading customers to think twice before entering one of these businesses. To combat this trend, Burger King will launch a cheaper five-dollar menu.
This will include the option of one of three sandwiches with nuggets, fries and a drink, in an attempt to also compete with a similar initiative from McDonald's.
"The tit for tat between the burger companies underscores the pressure to attract budget-conscious Americans who’ve pulled back from dining out as they buckle under persistent inflation. About 78% of Americans surveyed by financial firm LendingTree said they viewed fast food as a luxury because it’s become too expensive. Meanwhile, as the price gap between quick-service outlets and their fast-casual counterparts has narrowed, some consumers are opting to skip the burger chains and instead spend a couple of extra dollars at eateries such as Chipotle Mexican Grill Inc", reported the aforementioned media.
Companies are well aware of consumers' situations. Indeed, the CEO of Burger King's parent company acknowledged to investors that customers' pockets are becoming a little more sensitive to current prices.
Inflation under Biden
According to the Investopedia portal, the Biden administration has the highest average inflation since Jimmy Carter.
Indeed, the current president's average annual inflation rate is 5.7%, which contrasts with the 1.9% that the Trump Administration averaged. As for Carter, he averaged 9.9% year over year.
"The average yearly inflation rate under President Joe Biden so far is 5.7%. Biden signed the American Rescue Plan Act in 2021, a $1.9 trillion stimulus package to help the country recover from COVID-19. In the wake of the COVID-19 pandemic recovery and after the Russian invasion of Ukraine in 2022 caused gas prices to soar, inflation rose to record levels not seen since the 1980s. Inflation peaked at 9.1% year-over-year in June 2022, the highest increase in 40 years," they explained from the aforementioned portal.
