The US inflation rate has gone up 6.8% compared to last year, which is the worst since 1982. AP. The massive increase in prices has effected gasoline/energy, food, housing, and automobiles. The inflation has many causes including trillions of dollars of government spending, low interest rates and high demand for products. Raising wages have contributed to the issue as well as many companies are dealing with a major worker shortage. The higher prices are hitting lower income workers hard as inflation cancels out any wage growth. Inflation is also hitting globally, with many countries seeing the same major rise in prices.
My Comment:
I have seen this major increase in prices myself. Just last year I would go to the grocery store and usually spend around $60 to $80 for food. This year? If it's less than $100 then I am amazed. I am still buying the same stuff, but the prices have skyrocketed. It's even seen at the vending machines at work, there is hardly anything in there under $1 now...
I have gotten several raises to help out but I think that they won't be enough. I still rent and I am expecting a major rate hike soon. That will likely wipe out my wage increase and with gas and groceries I will be lucky if I end up treading water in terms of actual wealth, instead of losing money.
It's like this all over the world right now and I think the US government and the leadership of the country (or lack there of) are causing it. The government threw trillions of dollars into the economy since 2020 and it is starting to show. People were given thousands of dollars for nothing and that caused a spending wave. With all that new money in circulation prices will of course increase.
If that wasn't enough our energy policy is contributing to the problem as well. Joe Biden's first move was to cancel pipelines and stop drilling for oil and gas. Predictably that lead to massive increases in energy costs and that has a trickle down effect on the economy. As gas prices go up, it gets more expensive to ship products and that price is passed on to the consumer.
Speaking of shipping, Biden has done a lot to destroy that industry as well. With all the free money being thrown around, a lot of people have realized that work sucks and it's better to have the government pay for you. A lot of these people won't be coming back to work and it is causing massive shortages in workers, which is causing major shipping problems throughout the world.
And don't let Biden get away with blaming this on the Coronavirus pandemic. It is related to the pandemic but it is not the pandemic's fault. It's Biden's actions on the pandemic that is causing the inflation, not the pandemic itself. The constant state of panic in the government is making people wary and I can't think of a worse policy than vaccine mandates when we are already in a worker shortage. The pandemic did damage the economy but we would be well on our way to recovery if it wasn't for the actions of the US government.
If there is any good news here it's that people will remember this inflation when it comes to 2022's midterms. The Democratic Party is going to take the lion's share of the blame for this, along with Joe Biden himself. It would take a massive amount of voter fraud for the Democrats to keep the house and senate under these conditions, and I haven't seen a thing to indicate that Biden will be able to get inflation under control. Indeed, he seems incapable of doing anything other than doubling down, no matter what the situation is.
Still, it's extremely frustrating to have to deal with this. I was hoping to maybe buy a house next year but under these circumstances it will be extremely difficult. And like I said, I was finally starting to pull ahead financially and it's just disgusting to see all that progress being erased because of Biden's policies...
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