Americans are becoming dangerously angry with the Biden regime over the continuing, self-inflicted inflation crisis. The Bureau of Labor Statistics revealed Tuesday that the consumer price index, which determines what customers spend for services and items, was up 8.5 percent from March 2021 to last month– the most significant boost since December 1981. Many are hearkening the crisis back to the Carter years of the 1970s.
On April 13th, the BLS revealed the manufacturer price index, which determines the rates paid by wholesalers, had actually leaped 11.2 percent year over year in March– the biggest boost since the 12-month information step was presented in November 2010.
Given that this is the worst inflation in more than 40 years, many are beginning to draw comparisons between Joe Biden’s economy of another Democrat– previous President Jimmy Carter, who commanded an age of “stagflation” with the U.S. in the alarming financial straits of high inflation and low development.
Home Depot co-founder Ken Langone, now 86, stated Tuesday that Biden is “even worse than Jimmy Carter,” according to Fox News.
As an octogenarian, Langone remembers all too well the years of financial problems throughout the Carter administration and is deeply worried about the existing crisis.
“We’ve got to get rates well above the inflation rate if you want to snap inflation, just like [then-Federal Reserve Chairman] Paul Volcker did in 1980 and ’81. … This was not transitory, this was a real serious case of inflation. We lost a whole year on addressing the issue,” he said on “Your World with Neil Cavuto.”
” Only because, honestly, we have management today in America that isn’t going to confess when they’re incorrect. They made an awful mistake here, and now the cost has actually got to be paid,” Langone stated.
By the numbers, inflation was substantially even worse under Carter. In 1979, the inflation rate was 11.3 percent, and in 1980, it was 13.5 percent, according to the Federal Reserve Bank of Minneapolis.
The existing pattern of inflation, which has actually been increasing regularly and substantially over the last 6 months, is worrying.
The Federal Reserve’s typical target for inflation is around 2 percent, however, the past 6 months have actually seen inflation above 6 percent, The Wall Street Journal reported.
YoY #CPI 8.5% vs 8.4% expected. #Inflation over the last 3 years… 👇 pic.twitter.com/Gs5ELBRn49
— Real Vision (@RealVision) April 12, 2022
Inflation is not simply an abstract financial principle. Increasing costs for needs such as food and energy impact every single American.
The BLS reported that the food index increased 1.0 percent and food in the house increased by 1.5 percent.
These numbers are extremely near the increasing food expenses throughout the Carter administration.
“Food costs jumped 1.7 percent in both September and October. Food price increases show up quickly on supermarket shelves,” The Washington Post reported in 1978.
The gas index shot up 18.3 percent.
The nationwide typical gas rate per gallon was $4.08 on Wednesday, AAA reported. A year back, it was $2.86.
The cost of oil has actually remained high as Brent petroleum (the European criteria) and West Texas Intermediate (the North American standard) are both above $100 per barrel, according to OilPrice.com.
Langone stated the existing energy circumstance is similar to the oil crisis of the Carter period.
In 1979, when Iran’s federal government collapsed and the nation ended up being an Islamic republic, putting a drawback in the worldwide oil market and supply, the U.S. spiraled into an oil/energy crisis.
Oil rates increased quickly in mid-1979 and more than doubled in between April 1979 and April 1980, the Federal Reserve History accounted.
Taking a look at today’s high fuel costs, Langone blamed Biden administration policies such as its cancellation of the Keystone XL Pipeline.
“The other thing is we’ve exacerbated the problem. For example, the energy issue in America, we didn’t have to be deficient like we are,” he said. “Hell, by now, that pipeline would have been almost complete.”
“And Biden’s now saying, he’s now blaming the oil companies. This is a disgrace. The oil companies are reacting to supply and demand.”
With the damage done to the economy, Langone forecasted an economic crisis is coming, which once again would parallel the Carter years.
“The deepest and longest‐lasting recession the United States has experienced since then began in 1980, when Jimmy Carter was president (the gross domestic product dropped 9.6 percent in the second quarter of that year) and did not end until fourth‐quarter 1982, almost two years into the Reagan presidency,” Cato Institute fellow Richard W. Rahn wrote in 2009.
The economic downturn of the Carter age was so bad that its impacts were felt for several years.
“There were positive quarters during this almost three‐year period, resulting in what is known as a double‐dip recession, but GDP did not return to the 1979 level until well into 2003,” Rahn wrote. “Unemployment peaked at 10.6 percent in the fall of 1982.”
Something like that is what Langone is anticipating now.
“The steps we’re taking right now will not help,” he said. “And who’s going to get hurt? The little guy, the poor guy that’s living from paycheck to paycheck. …
