Inflation, rising consumer prices, skyrocketing gas prices — we hear about these topics every day. We feel the effects of these economic buzzwords, they cut like scalpels into our wallets, bank accounts, and 401K plans. These bad economic times mean we don’t get the cool new gadget we’ve been saving for, the kids don’t get the awesome vacation at Disney this year, or we’re dining on potatoes and green beans for the week. Maybe, Biden’s dismal economy means another half decade before retirement.
Last Friday, the always glib, unprepared, and painfully shallow White House Press Secretary Karine Jean-Pierre was questioned by Peter Doocy about the Biden administration’s response to inflation. Jean-Pierre claimed that current out of control inflation is the result of COVID and the war in Ukraine — laughable. Jean-Pierre further beclowned herself by claiming inflation is a global issue, also the result of COVID and the Russian war on Ukraine.
The May inflation rate spiked to 8.6%, the highest increase since 1981, and hovers at a 40 year high. However, if we calculate inflation the way we did in 1990, the current inflation rate is closer to 15%.
Inflation isn’t really a measure of how expensive things are.