(RepublicanDaily.org) – The economy is a complicated beast. As we saw in 2008, it can take a while for ordinary people to feel the adverse effects of destructive policies. The housing market had been in deep trouble for quite some time before banks started going to the wall, and ordinary people began to suffer.
It’s the same story with the inflation problems currently threatening the US. Lately, analysts are very worried about the potential for unsustainable price increases as the economy gathers steam in the wake of the COVID-19 pandemic. Additionally, Democratic policies have flooded the nation with cash, and when there’s lots of cash, prices tend to climb.
In the four months that Joe Biden and Kamala Harris have been in office, we’ve experienced a border crisis, a gas crisis, and a war in the Middle East.
Now, we’re also on the verge of an inflation crisis.— Senator Ted Cruz (@SenTedCruz) June 14, 2021
However, as in 2008, it could take a while for the average consumer to feel the pain. On Tuesday, June 15, the Labor Department reported producer prices increased at their quickest year-on-year rate in 11 years for May. In fact, it was the largest leap in recorded history — 6.6% — since the Department began assessing this statistic in 2010.
Many people who currently enjoy a comfortable existence could find their margins getting thinner and thinner over the coming months. When producers find themselves paying more for materials down the road, these costs often trickle their way to the end consumer, causing them to pay more. Hopefully, this spike will only be temporary as the economy rebounds from the pandemic.
Copyright 2021, RepublicanDaily.org
