Ouch: Inflation hit yet another new high in June, a worse-than-expected annual rate of 9.1% — a level last seen in November 1981.
As a result, real hourly earnings fell 3.6% over the last 12 months. Plus, employers seeking to make their ends meet have been cutting back on workers’ hours, so actual, inflation-adjusted weekly earnings fell 4.4%.
And the hit is even harder for working Americans, as energy and food costs soared even more: groceries up 12%; gas, 60%.
Oh, and the inflation jump from May to June was 1.3%, the largest one-month spike since Bidenflation started as Congress was passing the so-called American Rescue Plan.
Hey, says President Joe Biden: These numbers don’t reflect the drop in pump prices in the weeks since June. But the decline is modest, and not guaranteed to continue.
As for the White House claim that June will prove to mark inflation’s peak: Maybe. But it said the same back in December, when price hikes were “only” 7%. Biden himself said in January that the rise was “slowing.” (Before that, the line was that it was “transitory” and would be back to 2.1% in 2022. Oops.)
Worse, Democrats’ big ideas right now include: 1) a tax cut for the rich, via the House-passed bill to increase the federal State and Local Tax deduction, and 2) more tax hikes on business and more federal spending, plus more Green New Deal nonsense via a new version of the Build Back Better bill.
Oh, and Biden’s about to beg the Saudis to pump more oil, even as his team continues to slam US drillers in the name of fighting climate change.
Bottom line: The president and Dems in Congress refuse to budge from the approach that got us into this mess.
Instead, they’re still leaving it entirely to the Federal Reserve to slay inflation with interest-rate hikes and similar tough-love moves. That’s necessary medicine, but also adds to the risk of recession — or, rather, of deepening the recession that’s likely already underway (we’ll know for sure when second-quarter economic growth numbers come out at month’s end).
November’s elections should change the tune from Congress, but Biden still seems bent on outdoing Jimmy Carter for the most obviously disastrous presidency in living memory.