Biden's Building Backwards Better with record high wholesale prices
President Joseph R. Biden (D) continues the inflationary policies of his predecessor from 40+ years ago, President Jimmy Carter (D), with his Building Backwards Better program. During his one term in the presidential office in the late '70s, Carter:
On assuming office in 1977, President Carter inherited an economy that was slowly emerging from a recession. He had severely criticized former President Ford for his failures to control inflation and relieve unemployment, but after four years of the Carter presidency, both inflation and unemployment were considerably worse than at the time of his inauguration. The annual inflation rate rose from 4.8% in 1976 to 6.8% in 1977, 9% in 1978, 11% in 1979, and hovered around 12% at the time of the 1980 election campaign. Although Carter had pledged to eliminate federal deficits, the deficit for the fiscal year 1979 totaled $27.7 billion, and that for 1980 was nearly $59 billion. With approximately 8 million people out of work, the unemployment rate had leveled off to a nationwide average of about 7.7% by the time of the election campaign, but it was considerably higher in some industrial states.
That was then; this is now. Echoing last week's Consumer Price Index showing that prices zoomed up 6.8%, November's Wholesale Producer Price Index figures released yesterday, December 14, by the U.S. Bureau of Labor Statistics solidified proof that Biden is well on his way to Building Backwards Better — meaning inflation is worse, much worse, than even under Carter. That means that while Biden celebrated Thanksgiving in luxury on a billionaire's Nantucket estate with nary a care, middle-class people are paying more for essentials but getting less.
PRODUCER PRICE INDEXES - NOVEMBER 2021
The Producer Price Index for final demand increased 0.8 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.6 percent in each of the 3 prior months. (See table A.) On an unadjusted basis, the final demand index rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010. (bold, italics added)
In November, the index for final demand services rose 0.7 percent and prices for final demand goods increased 1.2 percent.
The index for final demand less foods, energy, and trade services moved up 0.7 percent in November, the largest rise since climbing 0.8 percent in July. For the 12 months ended in November, prices for final demand less foods, energy, and trade services increased 6.9 percent, the largest advance since 12-month data were first calculated in August 2014. (bold, italics added) (snip)
Product detail: Within final demand goods in November, prices for iron and steel scrap rose 10.7 percent. The indexes for gasoline, fresh fruits and melons, fresh and dry vegetables, industrial chemicals, and jet fuel also moved higher. Conversely, prices for diesel fuel decreased 2.6 percent.
The indexes for processed young chickens and for light motor trucks also fell.
Ah, finally some good news — certainly most people would rather have processed young chickens and light motor trucks than fresh fruit and vegetables, gasoline, and jet fuel, wouldn't they? Not! All are needed, and the former's slight decreases don't cancel the latter's increases.
For those who would understandably not want to read the BLS's entire depressing report, filled with facts in the form of numbers and charts, CNBC summed it up in a few words:
November producer price index rises 9.6%, sets new record
"A new record!" — which, not so incidentally, was higher than the 9.2% expected.
As a consequence of these facts, you may now forget your new word, "transitory" (not to be confused with "transgender," which can also be forgotten) because, as Federal Reserve chairman Jerome Powell noted, "it's probably a good time to retire that word [transitory] and try to explain more clearly what we mean" when talking about inflation.
Good idea! What we mean by "talking about inflation" is that the average Joe's and Jill's (not with the last name of Biden) expenses will go up more than their modest salary increases. Joe Biden did that!
And inflation is here to stay! Under Biden, it is permanent!
Joe Biden did that!
To comment, you can find the MeWe post for this article here.