Is “Meltdown” The Correct Term To Describe The Current State Of The U.S. Economy?
Francesco Abbruzzino, The Uncensored Report, LLC
I have really been struggling to come up with an accurate way of describing the current state of the U.S. economy, because none of the traditional labels seem to apply. Inflation is out of control, and that normally happens when an economy is overheating. But of course the U.S. economy is not overheating. In fact, if U.S. GDP falls once again during the second quarter, that will officially confirm that we are actually in a recession right now. There are some that have suggested that “stagflation” is a good description of current economic conditions, but the truth is that what we are facing is so much worse than anything that we dealt with during the 1970s.
Let me give you an example. The Bureau of Labor Statistics just informed us that the consumer price index is 8.3 percent higher than it was a year ago…
Inflation rose again in April, continuing a climb that has pushed consumers to the brink and is threatening the economic expansion, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a broad-based measure of prices for goods and services, increased 8.3% from a year ago, higher than the Dow Jones estimate for an 8.1% gain.
That is a really bad number, but it doesn’t accurately reflect reality.
If inflation was still calculated the way that it was back in 1980, the official rate of inflation would be well over 15 percent right now, and that is far worse than at any point during the Jimmy Carter era.
And if you can believe it, the real rate of inflation is now the highest that it has ever been in the entire modern history of the United States.
The term “meltdown” comes to mind, but I don’t think that completely captures what we are facing either.
Of course Joe Biden says he has a plan, and he insists that reducing inflation is his “top economic priority”…
President Biden, reacting to April’s consumer price index Wednesday, acknowledged that inflation is “unacceptably high,” and maintained that lowering prices for American families is his “top economic priority,” while again blaming the surging numbers on COVID-19 and Russian President Vladimir Putin.
Meanwhile, tens of millions of ordinary Americans continue to deeply suffer as prices spiral out of control.
Earlier today, I was stunned to see that even CNN is admitting that some Americans are “skipping meals” these days in order to make ends meet….
The price of groceries, gas, rent and utilities has marched higher over the past year; but wages have not kept up — and more than half of single parents make less than $15 an hour, according to recent research from Oxfam.
That has left many single parents skipping meals so their children have plenty of food, providing less healthy meals for their families, and culling expenses to the point where any unforeseen cost could mean more debt — or worse.
If people are skipping meals already, what will things be like a year from now when economic conditions are even worse?
Most people don’t realize this, but we are extremely vulnerable. When the next major downturn strikes, millions upon millions of Americans will be instantly wiped out.
According to a report that was just released, almost two-thirds of all Americans are currently living paycheck to paycheck…
As of March, close to two-thirds, or 64%, of the U.S. population was living paycheck to paycheck, just shy of the high of 65% in 2020, according to a LendingClub report.
“The number of people living paycheck to paycheck today is reminiscent of the early days of the pandemic and it has become the dominant lifestyle across income brackets,” said Anuj Nayar, LendingClub’s financial health officer.
Living on the edge is fine as long as a paycheck keeps coming in like clockwork.