“The obscure we see eventually. The completely apparent may take longer.”-Edward Murrow
On May 19, 2022 the Senate blocked a $48 billion relief package for small businesses while, on the same day, approving a $40 billion aid package for Ukraine.
Inflation Exploding While Growth Is Slowing
Under the Biden administration, the role of government in the economy has undergone its biggest shift in 40 years. Rather than fear of debt and inflation, the policy makers are flooding the economy with dollars and spending programs.
In the first quarter of 2022, the U.S. economy took a dramatic hit with GDP shrinking 1.4 percent. The Federal Reserve recently revised its prediction for second quarter GDP downward to 2.4 percent, a sharp drop from its earlier prediction of 4 percent growth.
In March 2022, the Consumer Price Index was up 8.5 percent to a 40-year high. Also in March, the Producer Price Index set a new all-time record high of up 11.2 percent.
These out of control increases in prices will put pressure on the Federal Reserve to raise interest rates. An increase in interest rates will increase the chances of a recession. Many economists believe the country is already in a recession.
Inflation Outpacing Wage Increases
Wages are not even vaguely keeping pace with riisng prices in gas, food and rent.
In March 2022, inflation cut the average American’s salary by almost 3 percent.
Biden’s Spin On Causes Of Inflation
Biden is taking no resjponsibility for soaring inflatin. The White House messaging has been to blame Putin, the “Ultra MAGA’s” and others.
According to Luke Tilley, the chief economist at Wilmington Trust, inflation is at its highest level in four decades owing to massive government spending. The White House insists the 40-year high inflation is “Putin’s Price Hike.”
Another ploy Biden has used to misdirect people on what is causing inflation is to blame inflation on wealthy corporations not paying taxes. Biden tweeted “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.”
Amazon founder Jeff Bezos, who owns the Democrat-friendly Washington Post, slammed Biden by tweeting “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.”
Americans Biggest Concern Is Inflation
A poll conducted by PEW in April 2022 revealed that 70 percent of Americans rate inflation as their top concern. Concern about COVID has dropped to last place.
Billionaire entrepreneur Elon Musk said, “The obvious reason for inflation is the government printed a zillion dollars.”
According to Ron Surz, CEO of Target Date Solutions, “Mountains of money cause inflation. The federal governments all-in spending was approaching $13 trilllion as of mid-2021. That is more than the U.S. spent in its 13 most expensive wars combined.”
The midterm elections are coming up in November 2022, at which time the U.S. economy could be in the thoes of a massive recession. Democrats could suffer a historic defeat if voters take out their pain on the party in power.
Photo by WMNF Community Radio