US inflation hits 40-year record ahead of midterm vote
Ramin Mazaheri
Press TV, Chicago
In what’s being called a “disaster” for the ruling Democratic Party, inflation has reached a 40-year high in the final official reading before next month’s midterm legislative elections.
The data is even worse than it appears, because the government excludes food and petrol from the official inflation rate. The record high is being driven by increases in other necessities such as lodging, medical care and mass transportation.
With prices rising 8.2% and wages increasing just 4.9%, economists say the average American effectively lost almost an entire day’s pay last month - and that’s using the official inflation rate.
Even though almost every economic indicator is negative, the nation’s bankers seem intent on restricting borrowing just when businesses are pulling back new job offers in record numbers and credit card debt is at a record high. The situation has already deteriorated into liberalism’s theoretically unsolvable dilemma: stagflation, which is recession plus inflation.
The right-wing economic policies may also produce political stagnation: the likely Republican takeover of the House of Representatives, and possibly the Senate, would hobble President Joe Biden’s ability to get any major legislation passed for the next two years.
The nation’s bankers are trying to stop price increases by destroying the demand for goods and services. The reduced demand should lower prices eventually, but the policy also rules out wage increases for workers and keeps corporate profits high.
US sanctions failed to crimp Iran’s oil supply: Chevron CEO
Trump threatens 100% tariff on BRICS nations if they undermine US dollar
Wall St falls as Russia-Ukraine tensions raise concerns
'Israel booby-trapped walkie-talkies, pagers years before Lebanon blasts'
Gaza Health Ministry calls for urgent intl. help to protect hospitals amid Israeli genocide
Stakes involved in Iran’s partnership with Eurasian Union
VIDEO | Press TV's news headlines
Iran says ‘ready’ to reopen embassy in Syria, holds talks with Damascus
VIDEO | 12 people killed in ammunition factory blast in northwest Turkey
Iraq’s PMU masses resistance forces on border with Syria amid mounting concerns
Israel killed over 700 athletes in Gaza since October 2023
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
