Connect with us

Economy

Tumble Tuesday: stock markets plummet, cost of food sees greatest jump since 1979

Published

on

Joe Biden

“The major stock market indexes tumbled on Tuesday, notching the worst one-day performance for stocks since June 2020, after a key measure of inflation came in worse than expected” reports National Review.

The Dow Jones Industrial Average dropped 1,276 points, or a 3.94 percent decline. The S&P 500 fell 4.32 percent, and Nasdaq experienced a 5.15 percent drop. The new figures raise concern among investors that the Federal Reserve will take an aggressive approach to combatting inflation that could send the U.S. economy into a recession.

Inflation for overall cost of food increased by 11.4%, the highest increase since May of 1979. The “food-at-home category, groceries” was up 13.5% year-over-year, the largest increase since March of 1979, according to Steve Reed, an economist at the U.S. Bureau of Labor Statistics (BLS).

The Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) increased by 8.3 percent in August compared to the same time last year and increased 0.1 percent from the previous month.

“The rise was worse than the 8.1 percent increase that economists had expected, according to Dow Jones estimates” adds National Review.

“The month-to-month figure also came in worse than expected, with economists having predicted a -0.1 percent change to the CPI but instead the measure increased 0.1 percent.”

President Biden responded to the report on Tuesday saying the data “show more progress in bringing global inflation down in the US economy.”

“Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do,” he said, adding that gas prices have fallen, some grocery store price increases have slowed down and real wages are up.

He continued: “It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy. And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”

Despite its name, the University of Pennsylvania Wharton School found that the “Inflation Reduction Act” is “expected to be statistically indistinguishable from zero.”

You may like

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Biden spends $1.65 trillion taxpayer dollars while vacationing in St. Croix

Published

on

Joe Biden

While vacationing in the island of St. Croix for the holidays, President Joe Biden on Thursday signed into law the massive $1.65 omnibus spending package.

The whopping 4,155 pages was supported by only nine House Republicans and 13 Senate Republicans. Majority of criticism from the GOP includes concerns that the bill was rushed and crammed with wasteful spending by a lame-duck Democratic-dominated Congress. The recourse will punish American families by adding to the national debt and exacerbate inflation.

“Today, I signed the bipartisan omnibus bill, ending a year of historic progress. It’ll invest in medical research, safety, veteran health care, disaster recovery, VAWA funding — and gets crucial assistance to Ukraine,” Biden tweeted. “Looking forward to more in 2023.”

Senate minority leader Mitch McConnell “praised the bill on the grounds that it represents a real decrease in discretionary spending. He presented it as a positive that nondefense spending jumped by only 5.5 percent, from $730 billion to $772.5 billion, amid an inflation rate of 7.1 percent” writes National Review.

“The bipartisan government-funding bill that Senators Shelby and Leahy have finished negotiating does exactly the opposite of what the Biden administration first proposed,” he said. “This bill provides a substantial real-dollar increase to the defense baseline . . . and a substantial real-dollar cut to the non-defense, non-veterans baseline,” McConnell insisted as negotiations were wrapping up.

House minority leader Kevin McCarthy, however, stated his strong disapproval of the bill before it even advanced. Affirming a letter from 13 House Republicans, McCarthy demanded the bill is reckless, irresponsible, and a “purposeful refusal to secure and defend our borders.”

For example, it failed to incorporate protections for Title 42, the pandemic policy that allows illegal immigrants to be expelled on a public-health basis, which currently hangs in the balance at the Supreme Court.

National Review adds, “The funding in the bill, which averted a federal government shutdown before the new year, includes an allocation of $45 billion in defense assistance to Ukraine. Some Republican priorities, such as Electoral Count Act reform and a bigger military budget, were nested in with Democratic appropriations, such as increased funding for Medicaid and food stamps.”

You may like

Continue Reading
Advertisement
-->

Trending Now

Advertisement
-->

Trending

Proudly Made In America | © 2022 M3 Media Management, LLC