More Bad Inflation News As U.S. Enters A Recession, Biden Pushes Spending | Eastern North Carolina Now | A key measure of inflation rose to a new 40-year high in June, according to new data, marking troubling news for Americans as the economy officially entered a recession on Thursday.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Leif Le Mahieu.

    A key measure of inflation rose to a new 40-year high in June, according to new data, marking troubling news for Americans as the economy officially entered a recession on Thursday.

    According to new data put out by the Bureau of Economic Analysis (BEA) on Friday, the personal consumption expenditures (PCE) index increased 6.8% in June, the highest yearly increase since January 1982. The month-to-month change in PCE was also the highest since February 1981, when the PCE also jumped 1% from the previous month.

    The PCE index also found core inflation (removing food and energy prices) up 4.8% yearly, which was higher than the previous month's increase. The numbers exceeded Dow Jones estimates for inflationary increases.

    The new inflation numbers also come as the U.S. officially entered a recession on Thursday, as gross domestic product decreased for a second consecutive quarter.

    The BEA's first estimate of the nation's gross domestic product was worse than the predicted expansion of 0.5%, shrinking at an annualized rate of 0.9%. Economists widely define a recession as two consecutive quarters of negative growth.

    "The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE)," the BEA explained. "Imports, which are a subtraction in the calculation of GDP, increased."

    Despite the poor economic news, President Biden has maintained that the U.S. economy is in good shape and "on the right path."

    "Coming off of last year's historic economic growth - and regaining all the private sector jobs lost during the pandemic crisis - it's no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation," Biden said in a statement.

    "But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure," the president added. "Our job market remains historically strong, with unemployment at 3.6% and more than 1 million jobs created in the second quarter alone."

    Biden also pushed two pieces of legislation, the CHIPS Act and the Inflation Reduction Act, that would spend billions of more dollars.

    The two plans combined would cost taxpayers roughly $920 billion. CHIPS would cost nearly $250 billion and the Inflation Reduction Act would spend $670 billion total while raising certain taxes. Experts have also surmised that Biden's $1.9 trillion "American Rescue" spending plan contributed to the current record-high inflation mentioned by the president.

poll#154
Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan, yet to be revealed, to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
655 total vote(s)     What's your Opinion?

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




China Threatens To Shoot Down Pelosi’s Plane If She Tries To Visit Taiwan Daily Wire, Guest Editorial, Editorials, Op-Ed & Politics ‘Now It Becomes A Crisis?’: McCarthy Hammers Pelosi For Pushing Stock Trading Ban At End Of Congress’ Term


HbAD0

Latest Op-Ed & Politics

We are expected to pretend
Local man Jimmy Blanco spent the past six months painstakingly going over player stats, injury reports, and strategy articles as he prepped for his fantasy draft that occurred the last week of August.
Former U.S. Attorney General William Barr said Wednesday that he does not believe that New York Attorney General Letitia James’ civil lawsuit against the Trump family is going to go anywhere, and what convinced him that she overreached on the case was that she decided to go after his children
Credit card debt jumped again in the second quarter of 2022 as inflation caused people to spend more money to consume the same basket of goods.
Former New York Governor Andrew Cuomo (D) lashed out at some he had considered his “political friends” before scandal brought an early end to his time in office.
Edgecombe Early College High School Scholar Teachers Program is Training High School Students to Become Edgecombe County Teachers Upon College Graduation

HbAD1

Two U.S. veterans from Alabama branded “soldiers of fortune” by Moscow after being captured fighting for Ukraine have been spared their date with a firing squad after a Saudi-brokered prisoner swap.
The state got $780 million for 2016's Hurricanes Matthew and Florence, yet some victims remain homeless.
Current and former conservative officials outlined an eight-pronged plan on Wednesday to encourage economic development under a Republican Congress.
The 41-year-old man who allegedly admitted to murdering a Republican teenager over politics has been released from jail after posting $50,000 bond.
Brothers of Italy going from 5th rank to largest party

HbAD2


HbAD3

 
Back to Top