Inflation Increases at Fastest Rate Since Great Recession Following Catastrophic Jobs Report
Despite the damage that was done to the economy by the coronavirus and more importantly, the government’s overreaction to the Coronavirus, Joe Biden had a nice, little plan to make the economy APPEAR to be going strong into the 2022 elections. The Fed had already printed trillions of dollars with nothing to back it in the 2nd half of 2019 and there was a December stimulus package as well. So, Biden pushed through ANOTHER stimulus package in March and now he’s working on an infrastructure plan that will cost trillions. In other words, the idea is to cover up the fundamental weakness of the post-COVID economy at least until after the 2022 elections with debt-driven spending from the government and printed money.
That plan has two serious snags. The first was the Democrats’ ridiculous insistence on beefing up unemployment checks to the point where many people made more money sitting at home than working. That led to the disastrous April jobs report. A million people were expected to get back to work and the actual number turned out to be 266,000. Of course, when you are willing to pay people more money to sit on their couches and play video games than work 40 hours a week, it’s no surprise when people take the easy option. In other words, it’s a Democrat-created labor shortage.
However, unfortunately, but not unexpectedly given the ludicrous levels of spending and money printing that we’re doing, we’re also seeing spiking inflation. Per CNBC,
The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year earlier. A Dow Jones survey had expected a 3.6% increase. The month-to-month gain was 0.8%, against the expected 0.2%.
Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis. The respective estimates were 2.3% and 0.3%.
The increase in the headline CPI rate was the fastest since September 2008.
Energy prices overall jumped 25% from a year earlier, including a 49.6% increase for gasoline and 37.3% for fuel
In other words, prices are going up fast under Joe Biden, but are savings going up fast? Are salaries going up fast? No. The rich can typically maneuver around inflation to a certain degree because they can afford to buy assets that appreciate. Houses, paintings, stocks, cryptocurrency, etc. The rest of us? Not so much. For the rest of us, inflation is basically a tax. The government prints money to give away and in exchange, the dollars you have are worth less than they were before. That’s what happens when the government is financially irresponsible and unfortunately, that’s what we can expect as long as Joe Biden is in office.
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