Dangerously high inflation has left Americans deeply dissatisfied with the economy and likely to punish the Democrats in this year’s midterm elections. US President Joe Biden would be wise to follow the example of his predecessor Bill Clinton, lest he end up sharing a political fate similar to Jimmy Carter’s.
Thirty years ago, Democratic political strategist James Carville focused Bill Clinton’s presidential campaign with the mantra, “It’s the economy, stupid.” America had just experienced a relatively brief, mild recession, owing partly to sharply rising oil prices following Saddam Hussein’s invasion of Kuwait. Between the slow recovery and Ross Perot’s independent candidacy (which peeled votes away from then-President George H.W. Bush), the stage was set for a Clinton victory.
Today, America’s job market remains resilient, with healthy job creation, low unemployment, and almost two job openings for every unemployed person. But dangerously high inflation has left Americans deeply dissatisfied with the economy. At 8.6% as of May, the annual consumer-price-index inflation rate is quadruple the norm of recent decades, and has outpaced wage growth, leaving most families with falling real incomes. Even core inflation – which excludes volatile food and energy prices – is running at 6%, higher than in other major economies. No one under 60 has experienced anything like this in their adult life.
Worse, the odds of a recession are growing. Housing starts and retail sales are stalling, and stock and bond markets (imperfect predictors, to be sure) are signaling problems ahead. There is little monetary- or fiscal-policy ammunition left to deal with a recession, and the fiscal profligacy of the past three administrations has left the country poorly equipped to address exploding Social Security and Medicare spending costs, not to mention the now-apparent need for more defense spending.
With the US Federal Reserve now raising its target interest rate, inflation may ease heading into next year. But a lag in the effects of higher rates, combined with rising inflation expectations (according to consumer surveys and the bond market), suggests that it will be some time to reach the Fed’s 2% target.
In the meantime, polls indicate that Americans will take out their frustration on President Joe Biden and the Democratic Party, starting with the midterm elections this November, when the Republicans will likely take control of the House of Representatives and possibly also the Senate. Once again, “it’s the economy, stupid.”
Unemployment down. Of course it is. If one doesnt file for unemployment but is unemployed, that will not factor into the equation.
Prices continue to rise and we all continue to pay. Summertime is when the hospitality industry is suppose to thrive. Hmmm… OC’s fiscal year ends tomorrow. It will reflect Jul 1 2021 to June 30 2022. Lets see what they say about the thriving from last summer. Remember the fireworks blew up so there wasnt any. And current like last summer help is badly needed.
Something else to consider, have we heard that Apple is hurting with their I phones? Of course not. Is Amazon hurting (remember PRIME week is coming). Of course not.
Yet there is bitchin about gas prices and food prices, but we are damn sure goona have that I phone and making purchases on Amazon Prime.
Priorities need reshaping since the USA is in debt almost $32 TRILLION.
Correct observation about unemployment stats. You must have been employed for a specified period of time to be awarded unemployment benefits. How much you will receive and the duration are based on your prior qualifying job.
If you don’t file, if you are determined to be ineligible after filing, or your awarded benefits have been used up then you just fall off of the unemployment statistics. Bingo, a lowered unemployment rate compared to actual situation.
NO, it’s the Democrat -COUP in Stolen Office from 2020 !!!!!!
Man is a true a hole. On Tucker Carlson last night, he reported that Biden stated the blame game and put the problems on us! Stated we should be grateful we don’t live in Nigeria!!! Well he and the Democrats and the Rhino Republicans, are turning this country into a third world S**Thole! They have no intention of doing anything about gas and energy prices. This is what they want! And most of them want us dead!