Bidenflation is eating away at American families’ buying power faster than wages are rising, according to the latest Labor Department figures.
The Labor Department reported Friday that average hourly earnings increased 0.4% in October, about in line with estimates. That was the good news.
However, the department reported Wednesday that top-line inflation for the month increased 0.9%, far more than what had been expected. That was the bad news – very bad news, in fact.
On average, Bidenflation means we’re all about half a percentage point poorer in October than we were in September.
Joseph LaVorgna, the chief economist of President Donald Trump’s National Economic Council, put it this way: “For now, inflation is going to continue to run above very solid wage growth.”
I’d put it this way: What wage growth?
It’s true that employers are offering record wages to lure workers back into the labor force—after having been bribed to stay home under various “stimulus” schemes. It’s also true that employers are offering increased wages to existing workers under today’s tight conditions.
But when Bidenflation is running hotter than wage or salary increases, there is no wage growth.
Shrinkage is real, and it’s far from spectacular.
October’s bad news is going to get worse in the coming months.
Lawrence Person reported on Wednesday that prices for “unprocessed goods are up 56% from a year ago” and that “at the current rate of increase, regular unleaded gasoline will hit $6/gal (National Average) by Easter.”
$120 to fill a 20-gallon tank is more than a day’s take-home pay for those who can least afford it. Bidenflation is going to give us #FightFor150 instead of #FightFor15.
What we need right now is for the Federal Reserve to get serious about fighting inflation. That means ratcheting up interest rates and bringing to an immediate halt its inflationary practice of buying up $40 billion in bonds each and every month.
Here’s what we’ll likely get instead:
We are hearing that Biden may kick Powell to the curb when his term expires next year and replace him with the most radical leftist on the Fed Board: Fed Governor Lael Brainard. Biden interviewed her for the job last week.
Our sources tell us that Democrats want her running America’s monetary policy for two reasons: 1) she wants the Fed to combat climate change through regulation of the banks and 2) she wants the Fed to use its regulatory muscle to address gender equity issues in corporate board rooms. This makes her the choice of the woke crowd and the Elizabeth Warrens of the Democrat party.
Wheee! Just what we needed, a central bank devoted to printing as much money as it takes to control the private sector and the weather.
I’m not so much dreading $6 gas as I am dreading the day when I look back fondly on it.
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