Is inflation really under control as the government claims?
Well, take a look at your utility bills, groceries, gas and other expenses as the costs continue to climb for the answer that question.
But the claims are always made to spin reality into narratives that the government fits into its own agenda – an agenda to always spend more money that it doesn’t have.
It isn’t just in the U.S. Globally, people are experiencing inflation at levels not seen for decades as prices surge for essentials like food, heating, transport and accommodation - and the effects may yet get worse.
One of the worst mistakes ever was locking down businesses during the pandemic.
After a lengthy period of scant inflation and low interest rates ended after the pandemic struck, governments and households were kept afloat with trillions of taxpayer dollars. While support was meant to help, it knocked supply and demand out of kilter as never before.
As the lockdowns ended, the economy grew at its fastest post-recession pace in 80 years (translation, people got their jobs back), and all that stimulus money overwhelmed the world’s trading system. Idled factories geared up to meet demand and Covid-safe rules caused labor shortages in retail, transport and healthcare – and the recovery caused a spike in energy prices.
Then came the Ukraine war and all that spending – and Wester sanctions on major oil and gas exporters which sent gas prices skyrocketing.
Inflation translates to a “tax on the poor” because it hits the middle and lower economic classes the hardest, exacerbating inequalities worldwide. While the wealthy can fall back on savings built up during the lockdowns, others struggle to make it from day to day.
While gas prices eased temporarily, they are back on the rise.
And of course, to ease the landing, the world’s central banks embarked on steep interest rates hikes, but such a scenario has proven elusive in the past with high inflation and made things worse for the average citizens.
While they bandy the possibility of a recession, the country is headed full-tilt boogie towards that very thing. Things are NOT going to get better.
While the government reports improved unemployment figures, many businesses are struggling to adapt to the changing economy; many began mass layoffs in 2022 and 2023. Thousands have been laid off in 2023 alone. But that news is buried.
On top of the layoff problem, is the continuing issue of workforce participation remaining below pre-pandemic levels. There are 1.97 million fewer American working today as compared to February 2020.
After businesses reopened, 2022 saw employers adding 4.5 million jobs (or were those people just going back to work after the business reopened, because that isn’t job creation). At the same time, millions of Americans were leaving jobs or being laid off, leaving three million fewer people participating in the labor force. A full 4.2 million people quit their jobs in November 2022.
I don’t know how the U.S. government is juggling the numbers to come up the unemployment rate and bragging on “job creation”, but clearly, something isn’t right. How can you have a lower unemployment rate with 4.2 million people quitting their jobs?
I guess that accounts for the *these figures may be adjusted* disclaimer.
It seems that everything in the federal government has to be adjusted to fit the current claims and agenda.
What will a recession mean? A quick rundown: higher risks of unemployment and underemployment and financial squeezes; price and high interest rate changes; decreased healthcare coverage; less credit access.
Even if people want to risk the higher interest rates on big purchases, those with good credit are now being punished by the Biden administration to help support the ones with bad credit.
If a person keeps their job, pay raise and health insurance, the rising inflation and cost of living will hurt every household in the country.
In any case, inflation is NOT improving, and a recession is well on its way, so hold onto your hats.