WATCH: $7 Per Gallon Gas?! President Trump Weighs In
Inflation is HERE my dear friends.
Still, it has not become as horrible as it can be. Personally, I have noticed some price changes already, but hey we aren’t in Venezulan territory….not yet anyway.
President Trump had the economy running flawlessly when he was President, and now Joe has us on a straight path to the 1970’s.
We recently got a small taste with the Colonial Pipeline mess, and according to President Trump things are going to get a whole lot worse before they get better.
I remember a time when gas was $4-$5 a gallon and people were freaking out.
I wonder what will happen when gas hits $7 like President Trump is suggesting. We have all these other tensions and social unrest brewing just under the surface of our society today.
$7 gas is not going to help the powder keg of a situation we have going on right now.
Even CNN Business admits the inflation issue:
From used cars and gasoline to lumber and food, prices are surging. The return of inflation, after a decades-long absence, is squeezing families and businesses recovering from the pandemic.
In many ways, higher prices can be seen as evidence that President Joe Biden's economic and health policies are working. The successful rollout of vaccines is allowing companies to reopen and Americans to resume traveling, spending and working. Growth is being turbo-charged by rock-bottom interest rates and unprecedented fiscal stimulus.
For many years, the nightmare for the US economy was a Japanese-style spiral of falling prices. Now, the risk for the White House is an economy that overheats, forcing the Federal Reserve to cool it down by raising interest rates so aggressively that it short-circuits the Biden boom, both on Main Street and Wall Street.
"If we see gasoline and food prices move sharply higher, that could become a problem for the Democrats in 2022," said Greg Valliere, chief US policy strategist at AGF Investments. "The risk is that both monetary and fiscal medicine could be too strong. It could be an overdose."
One concern is that inflation expectations, by businesses and consumers alike, are rising sharply. People no longer expect prices to remain in check. That's a big deal.
"You're starting to see a shift in psychology around inflation," said Aneta Markowska, chief economist at Jefferies. "That can become self-fulfilling. If everyone believes transitory price pressures will persist, that alters behavior."
Such behavioral changes can morph into a vicious cycle, with businesses stockpiling more goods and consumers buying products ahead of schedule. That would only reinforce inflationary pressures.
Fox Business points out the horrible effects of the massive spending package:
The American Rescue Plan, which passed in March, pumped up unemployment benefits with $300 per week in federal funding, a move Republicans have said is discouraging those receiving benefits from taking jobs where they might make less. It also offered $1,400 checks to millions of Americans.
And while April’s lackluster Labor Department stats showed just 266,000 new jobs added to the economy, falling sharply below the 1 million projected, the Biden administration has maintained that more people will enter the labor marker once vaccinated and better child care options are available.
The Labor Department reports that U.S. consumer prices for goods and services surged 0.8% in April, the largest monthly increase in more than a decade and the fastest year-over-year jump since 2008.
Scott said "connecting the dots should be easy," for his Democratic colleagues, "but sometimes when you’re lost in a philosophical discussion, you forget practical reality."
"That’s part of the challenge in Washington, Washington is like a bubble, and people within that bubble don’t necessarily understand and appreciate what’s happening outside that bubble – one of the most important things is to spend as much time in your home state as possible and talking to your folks to remember why you are doing what you hope that it is to be accomplishing."
"Everyday folks – I consider myself one of them – who are putting gas in their car, you’re looking at the gas price and it’s 70 or 80% higher than what it was at the beginning of the year," Scott said. "You go to the store and try to find your normal groceries and you’re stunned at it. And, frankly, if you’re in the housing market, the lumber prices are up because of the transportation costs."
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