Surviving in Joe Biden’s America is becoming harder for workers who find themselves getting behind as costs takeover their paychecks.
As highlighted by Trading Economics, inflation was nearly 1.4 percent when former President Trump left the White House, then skyrocketed during the first months of the Biden regime being installed.
Although the Biden team for months refused claims that its spending policy was causing inflation and attempted to spin it as a momentary blip, even the Fed now admits that inflation will not get better in the short-term, according to KATV-TV.
Fed Chair Jerome Powell said that the triggers for inflation were “longer-lasting than expected.”
The Fed, which back in June reported that inflation for 2021 may go to 3 percent, changed its prediction to 3.7 percent, with a potential number of 4.2 percent for 2021 when including increasing food and energy costs. The result for workers is that making more money might not even be enough.
“Some of these gains we saw for workers in certain sectors, the boosts looked good, but not with 5 percent inflation,” stated Jim Butkiewicz, an economist from the University of Delaware.
Recent BLM (Bureau of Labor Statistics) figures revealed that within this 5.3 percent increase in costs, gas prices were higher by 42 percent, beef prices were higher by 14 percent, lumber prices by 10 percent and egg prices by 10 percent.
One of the top factors causing this price increases is that income has increased as employers attempt to bring in help, leading to a spiraling in wages and keeping costs rising.
As this spiral continues, economist groups have lowered their forecast for GDP growth, according to CNN.
In May, the National Association for Business Economists predicted a 6.7 percent growth, but that is now being revised down to 5.6 percent.
Growth in Q3 of the year is now expected to be at an annualized rate of 4 percent, which is down from May’s number of 6.6 percent.
The group also increased its estimate of the damage that inflation would have on workers, saying that consumer prices in the upcoming Q4 will be 5.1 percent higher than last year’s levels, far above the prediction of 2.8 percent the group had made back in May.
In a comment, GOP Senator Rick Scott from Florida said it’s not a secret that the Biden team is to blame for this inflation.
“Reckless spending leads to inflation. We have seen the terrible consequences of the Democrats’ radical plans in increasing inflation month after month. We know Democrats will not fight for American families. They only care about passing their liberal wish list bill, no matter what it costs,” he said.
Author: Blake Ambrose
