Break-Even On Inflation By Mid-2027

Jan. 30, 2026

Permission to republish original opeds and cartoons granted.

Why Americans Are Still Feeling The Inflation That Began In 2021—And Won’t Break Even Until Mid-2027


Since inflation peaked in 2022, voters have generally been treated with some good news and some bad news. It’s been two steps forward, one step back. It was so bad it made Joe Biden a one-term president just like Gerald Ford, Jimmy Carter and George H.W. Bush, who all saw inflation outpacing incomes for significant portions of their presidencies. Overall, if consumer inflation at its current level growing 2.7 percent the last twelve months and nominal average weekly earnings growing 3.75 percent — earnings have been outpacing prices since mid-2023 — then break-even from the Biden-era inflation will not occur until about mid-2027, according to an Americans for Limited Government Foundation analysis of BLS data. This is likely weighing on President Donald Trump’s approval among voters, who is still upside down on independents, especially as it relates to inflation and the economy. That is concerning for Republicans in 2026 as it was for Democrats in the presidential election in 2024. But there is more than enough time for people to really “feel” wealth creation aspects certainly by the time 2028 rolls around, likely benefiting Vice President J.D. Vance or whosoever Republicans nominate that year.


Cartoon: Deflect Much?


The real insurrection act.


Could A Republican Replace Gov. Gavin Newsom in CA? It’s Possible Because Of California’s Crowded Primary System And Independents Want Change.


California hasn’t had a Republican governor since Arnold Schwarzenegger served two terms from 2003 to 2011. In California, all candidates for governor face off in the June 2 primary, regardless of party, and the two candidates with the highest percentage of the vote — regardless of party — proceed to face off in the general election. What this means practically is that the more Democrat candidates enter the already crowded primary pool, the more chances there are for the Democrat vote to be split among multiple Democrats. According to a Dec. 4 Emerson College poll that surveyed California voters on a list of candidates for governor — but did not include the entire slate of Democrat gubernatorial candidates — the Democrat vote is already likely to be split between at least five Democrats. On the Republican side, just two candidates have entered. The Emerson poll shows pro-Trump Sheriff Chad Bianco, who opposed the state’s lockdown policies and is tough on crime, leading the pack with 13 percent of the vote. Political commentator Steve Hilton who is also running as a Republican earns 12 percent of the vote. On the Democrat side, the vote is side is split among Rep. Eric Swalwell (12 percent), former Orange County Rep. Katie Porter (11 percent), former Los Angeles mayor Antonio Villaraigosa (five percent), climate activist billionaire Tom Steyer (four percent), and former Health and Human Services Secretary Xavier Becerra (four percent), according to Emerson.


ALG Urges President Trump To Release All Remaining Russiagate Documents


Americans for Limited Government Executive Director Robert Romano: “Almost a decade ago, the FBI launched the ill-fated Crossfire Hurricane investigation into President Trump, making false allegations that the 2016 campaign was conspiring with Russia that ultimately has led to a dangerous escalation, risking war, and almost a decade later, the American people still do not have all of the documents about what happened, and how it was the Justice Department utilized Democratic National Committee and Hillary Clinton campaign-generated false 'intelligence' in a high level operation to conduct surveillance against the opposition party in an election year and then to continue the top secret investigation into the sitting president, undermining the President’s foreign policy and the overall administration of the executive branch and the Justice Department. We’re still picking up the constitutional wreckage from this very dark chapter of American history. Judicial Watch is suing for additional documents, and now former FBI Deputy Director Dan Bongino has confirmed there are still things ‘you can only read in the office’.”


 

Why Americans Are Still Feeling The Inflation That Began In 2021—And Won’t Break Even Until Mid-2027


By Robert Romano

Producer inflation for goods was unchanged in December, according to the latest data compiled by the U.S. Bureau of Labor Statistics (BLS), including food and energy, which decreased 0.3 percent and 1.4 percent respectively. 

That is fairly good news, but it is somewhat overshadowed by overall producer prices increasing 0.5 percent, more than expected, including goods besides food and energy increasing 0.4 percent and services increasing 0.7 percent.

That unfortunately is a continuation of what the American people have been seeing for the past five years of sticky inflation that began in 2021. Since inflation peaked in 2022, voters have generally been treated with some good news and some bad news. It’s been two steps forward, one step back. It was so bad it made Joe Biden a one-term president just like Gerald Ford, Jimmy Carter and George H.W. Bush, who all saw inflation outpacing incomes for significant portions of their presidencies.


Overall, if consumer inflation at its current level growing 2.7 percent the last twelve months and nominal average weekly earnings growing 3.75 percent — earnings have been outpacing prices since mid-2023 — then break-even from the Biden-era inflation will not occur until about mid-2027, according to an Americans for Limited Government Foundation analysis of BLS data


This is likely weighing on President Donald Trump’s approval among voters, who is still upside down on independents, especially as it relates to inflation and the economy. He’s basically inherited Biden’s numbers on the economy as inflation is still registering as the top issue in polls. It’s about 25 percent and jobs and economy 12 percent in the latest Economist-YouGov poll taken Jan. 23 to Jan. 26.

Low approval generally weighs on members of the President’s party in Congress in midterms regardless of party or majority status and so low approval on the top issues has to be concerning for Republicans in 2026 as it was for Democrats in the presidential election in 2024, particularly since with inflation, long term, the only thing that gets wages keep ahead of prices is time and a good economy. 

Anything below 50 percent approval and with the exception of 2022 the incumbents are usually looking at double-digit losses in the House — a very common outcome for almost every president. Again, the equation on wages versus inflation began to right itself in 2023, it was just too late to help Biden in 2024, and now the current trend, which is positive news, almost certainly seems to also be too late to help Republicans in Congress in 2026.

Looking to mid-2027, when U.S. households finally hit break even from the inflation, one might expect to see the President’s numbers on the economy to improve somewhat. By that time, Democrats might be wrangling up their next impeachment post-2026, while the GOP can start to benefit from the positive economic long-term trends.

At a recent press briefing, the President claimed that he had bad public relations people while acknowledging the messaging gap Republicans definitely have on the economy right now. But the more relevant factor is simply time. 

Just as bad numbers hurt, good numbers ultimately help incumbent parties, but it does take time. In the short term, time might not benefit Republicans this year, there is more than enough of it for people to really “feel” wealth creation aspects certainly by the time 2028 rolls around, likely benefiting Vice President J.D. Vance or whosoever Republicans nominate that year. 

But in Congressional midterms, the economy has a tendency to hurt the incumbents when voters feel bad about it. Taking a closer look at 1958, the year Democrats picked up 15 Senate seats, going from 49 to 64, with a majority that would last until 1980. That year, Republicans also lost 48 House seats. It’s also when Eisenhower’s approval rating measured by Gallup was the worst.

That year there were two major factors headed into the midterms: The Little Rock Crisis of 1957, when Dwight Eisenhower had to put the military into Arkansas to desegregate public schools, and there was a recession in 1958. With the exception of West Virginia, all of the Senate seats lost in 1958 were Union states in the Civil War. It was the recession, not deploying troops domestically, that gave Democrats their supermajority.

Usually, the economy as a factor analyses look at presidential years when it comes to elections during or immediately after a recession: 1976, 1980, 1992, 2008 and 2020. The incumbents lost every one of those elections. They also lost in 2024 with bad inflation, although the Bureau of Economic Analysis has yet to acknowledge there was a recession coming out of the post-Covid inflation.

As hard as it is to swallow, economic dissatisfaction should be worrisome for any administration. A silver lining for the President is a recent New York Times poll taken Jan. 12 to Jan. 17 shows voters blame Biden at 35 percent to Trump at 31 percent for the current economic situation, including 30 percent of independents who blame Biden and 29 percent who blame Trump. Meaning, independents might be receptive to a message that realistically projects where they should expect to be in a relatively short amount of time. 

Break-even from the Biden era inflation won’t be until mid-2027, which is better than nothing, but it also shows why people are still feeling the inflation. The American people are not yet satisfied with inflation picture, and neither should the President. It’s getting better. Now, assuming the President’s economic team doesn’t have anything else up their sleeves to boost production, strengthen the dollar or anything else that might help cool prices, then it’s just a matter of time.

Robert Romano is the Executive Director of Americans for Limited Government Foundation. 

To view online: https://dailytorch.com/2026/01/why-americans-are-still-feeling-the-inflation-that-began-in-2021-and-wont-break-even-until-mid-2027/ 


Cartoon: Deflect Much?

By A.F. Branco


Click here for a higher level resolution version.

To view online: https://dailytorch.com/2026/01/cartoon-deflect-much/ 


Could A Republican Replace Gov. Gavin Newsom in CA? It’s Possible Because Of California’s Crowded Primary System And Independents Want Change.


By Manzanita Miller 

California’s Democrat governor Gavin Newsom, who earned criticism from California voters due to his Covid-19 lockdowns, is term-limited and ineligible to run again in 2026 leaving the field wide open for new leadership. At least eight Democrats are vying to replace Newsom, but because of the way the state’s top two primary is organized, it is possible the crowd of Democrat contenders will split the vote in the primary, and no Democrat will amass enough votes to proceed. If this happens, two Republicans will move ahead to the general election in November, ensuring a Republican Governor of California.   

California hasn’t had a Republican governor since Arnold Schwarzenegger served two terms from 2003 to 2011. While the state is widely viewed as a left-wing stronghold, the 2024 election revealed cracks in the system for Democrats with President Donald Trump increasing his share of the vote by four percentage points statewide and flipping ten counties from 2020 to 2024. Democrats locking the state down during the pandemic, fanning the flames of anti-ICE rioters, and neglecting voters’ concerns about crime and taxes have all chipped away at their support.  

In California, all candidates for governor face off in the June 2 primary, regardless of party, and the two candidates with the highest percentage of the vote — regardless of party — proceed to face off in the general election. What this means practically is that the more Democrat candidates enter the already crowded primary pool, the more chances there are for the Democrat vote to be split among multiple Democrats.  

And so far, it is shaping up to be a very crowded primary on the Democrat side, with at least eight different Democrat candidates vying for a share of the vote. 

According to a Dec. 4 Emerson College poll that surveyed California voters on a list of candidates for governor — but did not include the entire slate of Democrat gubernatorial candidates — the Democrat vote is already likely to be split between at least five Democrats.     

Since then, the list of Democrats entering the primary has expanded to eight and more could still enter before the June 2 primary, while just two Republicans have entered. 

On the Republican side, just two candidates have entered. The Emerson poll shows pro-Trump Sheriff Chad Bianco, who opposed the state’s lockdown policies and is tough on crime, leading the pack with 13 percent of the vote. Political commentator Steve Hilton who is also running as a Republican earns 12 percent of the vote.       

On the Democrat side, the vote is side is split among Rep. Eric Swalwell (12 percent), former Orange County Rep. Katie Porter (11 percent), former Los Angeles mayor Antonio Villaraigosa (five percent), climate activist billionaire Tom Steyer (four percent), and former Health and Human Services Secretary Xavier Becerra (four percent), according to Emerson.  

Independent voters also prefer the Republican gubernatorial candidates according to an Independent Voter Project poll. The survey, released Jan. 12, finds Sherrif Chad Bianco is the top pick among independents with 26 percent of the vote, followed by GOP candidate Steve Hilton at 23.8 percent and “none of the above” at 22.3 percent.  

Democrat contenders Eric Swalwell (21 percent), Katie Porter (20.3 percent), Xavier Becerra (12.5 percent), Antonio Villaraigosa (9.8 percent), Rick Caruso (8.8 percent), Betty Yee (6.8 percent), Tony Thurmond (4.7 percent), and Ian Calderon at (2.4 percent) all received less in the Independent Voter Project poll. The poll also finds a majority independents say the state needs more law enforcement, not less, and a majority want the state to cooperate with ICE. 

While handing the governor’s seat back to a Republican is a longshot, there are signs that California voters have moved toward the right. President Donald Trump increased his share of the vote by four percentage points statewide between 2020 and 2024 and flipped ten counties including Orange, San Bernardino, Fresno, and San Joaquin.    

The more crowded the primary becomes with Democrat contenders, the likelier it becomes that the Democrat vote will be split among several candidates and the top contenders facing off in November will be Republicans. Californians are growing weary with Democrats’ failed approach to crime, housing, and the handling relations with ICE in the state, and independent voters are shifting toward the GOP. 

Manzanita Miller is the senior political analyst at Americans for Limited Government Foundation.

To view online: https://dailytorch.com/2026/01/could-a-republican-replace-gov-gavin-newsom-in-ca-its-possible-because-of-californias-crowded-primary-system-and-independents-want-change/


 

ALG Urges President Trump To Release All Remaining Russiagate Documents

Jan. 30, 2026, Fairfax, Va.—Americans for Limited Government Executive Director Robert Romano today issued the following statement urging President Donald Trump to release any remaining documents from the FBI's 2016-2019 investigation into false allegations by the DNC and Hillary Clinton that the President was a Russian agent after former FBI Deputy Director Dan Bongino said on Fox News with Sean Hannity that many documents are "stuff that you could only read in the office" that "involved the collusion hoax, Crossfire Hurricane":

"Almost a decade ago, the FBI launched the ill-fated Crossfire Hurricane investigation into President Trump, making false allegations that the 2016 campaign was conspiring with Russia that ultimately has led to a dangerous escalation, risking war, and almost a decade later, the American people still do not have all of the documents about what happened, and how it was the Justice Department utilized Democratic National Committee and Hillary Clinton campaign-generated false 'intelligence' in a high level operation to conduct surveillance against the opposition party in an election year and then to continue the top secret investigation into the sitting president, undermining the President’s foreign policy and the overall administration of the executive branch and the Justice Department. We’re still picking up the constitutional wreckage from this very dark chapter of American history. 

“Judicial Watch is suing for additional documents, and now former FBI Deputy Director Dan Bongino has confirmed there are still things 'you can only read in the office'. Maybe it's the subject of an active investigation, which is interesting, but given the realities of judicial and jury nullification in John Durham's ill-fated attempts to prosecute Russiagate crimes (or more recent attempts to prosecute violent agitators from 2025 anti-ICE riots), the likelihood of seeing justice appears slim. 

“They neither fear prosecution nor conviction. The only thing the perpetrators do fear is exposure and transparency. And it might be the only card left to play. Don't just tell us what happened — show us — and bring the American people with you. It might be the only way to ultimately prevent this from ever happening again, regardless of which party is in the White House. Declassify everything, Mr. President.”

To view online: https://getliberty.org/2026/01/alg-urges-president-trump-to-release-all-remaining-russiagate-documents/