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US Inflation Spiked 8.6%, Highest in 40-Years — Economist Says We’re Not ‘Seeing Any Signs That We’re in the Clear’

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After the publication of the April report on the consumer price index (CPI), a number of US economists and officials said that inflation has reached its peak and its decline is possible. However, US Department of Labor statistics show that the consumer price index rose 8.6% year-over-year as inflation data for May hit another lifetime high.

May CPI data shows inflation not yet at its peak

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The U.S. economy doesn’t look all that rosy these days, and after shutting down the economy due to the respiratory virus and printing trillions of dollars in stimulus, it seems these ideas were huge mistakes. Inflation is a general increase in the cost of goods and services, and currencies like the US dollar cannot buy as many goods and services as they could with lower inflation. Reports shows that almost everything in supermarkets is now more expensive, and the prices of things like rent, gas, cars and housing have skyrocketed. Prices for goods and services continued to rise despite politicians saying inflation would be “temporary.”

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When the CPI data for April was released, some people even claimed that inflation had “peaked”, but recent May CPI data indicates that this requirement has not been met. US inflation data from the Labor Department shows that the CPI hit a 40-year high of 8.6% last month. Inflation in the US was so bad that stimulus checks, extended child tax credits, extended unemployment benefits, and even modest wage increases were wiped out by rising costs of goods and services.

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Labor Department figures show that rising food, gas and energy prices pushed up the CPI data, and housing costs were one of the biggest drivers of last month’s rise in inflation data. Thus, despite a slight increase in the wages of some American workers, real wages fell by 0.6% compared with April. Economists who noted that the April data was “the peak of inflation” are beginning to notice that the cost of goods and services continues to peak. Morning Consult chief economist John Lear said the May CPI was disappointing.

“It’s hard to look at the inflation data for May and not be disappointed,” Leer. explained June 10th. “We just don’t see any signs that we’re safe yet.”

“Perhaps shutting down the economy because of the respiratory virus was a bad idea”

Meanwhile, US President Joe Biden continues to blame Russia and Vladimir Putin. “Today’s inflation report confirms what Americans already know: Putin’s price hikes are hitting America hard,” Biden. emphasized at a press conference this week. However, many people say that the US economic shutdown, lockdown and Covid-19 stimulus bills were terrible ideas. “I’m starting to think it might have been a bad idea to shut down the economy because of the respiratory virus,” economist Jeffrey Tucker. wrote on Friday.

U.S. Representative Thomas Massey, a Republican from Kentucky, shared statements he made back in 2020 when he said passing a massive stimulus bill was not a good idea. In January Massey said: “Too many people won’t see the bill get passed which will cause massive inflation, passing it without members present will set the tone for nationwide votes by mail, money will make all lockdowns possible, and paying people not to work will kill” . performance in the US. However, many critics have given Massey trouble for his controversial statements and resorted to ad hominem attacks.

“Messi just says whatever stupidity comes into his head,” one person said. wrote in response to Massey’s tweet at the time. A Kentucky representative recently responded to this person’s comment and said this “tweet is not outdated”.

In 2020, Democratic Senator John Kerry said that “Congressman Massey tested positive for being a **hole.” The Kentucky representative also decided to scoff at Kerry’s tweet and remarked that he predicted “Democrats will isolate John Kerry and his dogma about raising energy prices in rock until at least November.” Massey added:

Here is his stupid tweet when I opposed the first $2 trillion printing boom on March 27, 2020 because it was supposed to cause inflation.

Massey wasn’t the only one to oppose trillion-dollar monetary expansion like a gold bug, and economist Peter Schiff was quick to criticize those who backed the stimulus. The same day John Kerry tweeted in March 2020, Schiff wrote: “Because the Fed will create all this money out of thin air, people will pay for it through inflation. Consumer prices are about to rise, wiping out the savings of millions of Americans and wiping out the purchasing power of the wages of millions more.”

What do you think of the latest CPI data and opposing opinions against shutting down the economy and massive spending in 2020? Let us know what you think about it in the comments section below.

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Credit : news.bitcoin.com

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