Biden and the Dems have a problem.
Unless the Ukraine war continues indefinitely, the Putin’s Price Hike lie is going to run out of juice. And the price hikes are going to keep rolling on.
The upstream picture, which is where the real economic sausage is made, keeps looking bleaker.
The prices that goods and services producers receive rose in March at the fastest pace since records have been kept, the Bureau of Labor Statistics reported Wednesday.
The producer price index, which measures the prices paid by wholesalers, increased 11.2% from a year ago, the most in a data series going back to November 2010.
On the producer side, prices for final demand goods led with a 2.3% monthly rise, while services prices gained 0.9%, up sharply from the 0.3% February increase. Goods inflation has outstripped services during the Covid pandemic, but March’s numbers indicate that services are now catching up as consumer demand shifts.
Energy prices were the biggest gainer for the month, rising 5.7%, while food costs increased 2.4%.
Is there any chance of this runaway train slowing down?
Let’s see. The Dem response to an economic crisis is…
1. Impose more regulations on businesses
2. Order wage hikes for employees
3. Print more money
If you want a rundown of three things that keep prices rising, those are high on the list. When the solution to high prices is to increase costs while devaluing money, the end result will only be a mystery to idiots and Bernie Sanders supporters. But I repeat myself. Biden and the Dems have adopted Bernie’s rhetoric of blaming inflation on some corporate conspiracy, when they’re not blaming it on Russia, in the theory that an attack is better than a defense.
Meanwhile, the American people will go on suffering.