That 70s Joe: Biden Misses Big on 2nd Quarter Growth as Inflation Continues Rising;
Real Wages Buying Power Falls 1.7%

The economy grew at an annualized rate of 6.5% in the second quarter, which may sound like a big number, but it's not. Remember, the economy is springing back from a period of government-and-covid forced artificial suppression.

Also remember that Biden has been pouring tomorrow's dollars into today's economy to get "Green Shoots" going for "Recovery Summer IX."

Given these facts, economists expected 8.4% growth.

Unexpectedly -- it's always unexpected when it's a leftwing Democrat in office -- Biden missed that mark by nearly 2 full points.

The second-quarter growth was just slightly better than the previous quarter's 6.3 percent rise, which was revised downward.

Unexpectedly, I'm sure.

The slower-than-expected growth was still enough to push the GDP above pre-pandemic levels, underscoring how far the economy has come in little more than a year.

At the worst of the pandemic, the economy collapsed at a striking rate of 31.4% in the second quarter of 2020, before bouncing back strongly in the next quarter.

And Biden's setting the table to put the economy on lockdown again.

Won't that be grand.

How many times can you put the shock paddles on a dead patient's chest before they stop sparking the heart to pump again?

Unexpectedly, the fed announced that the high inflation we are currently enjoying, and not enjoying very much, will be higher and more persistent than previously estimated.

The Federal Reserve admitted Wednesday that inflation could increase quicker and for longer than the central bank has projected in recent months.

Inflation could turn out to be "higher and more persistent" than previously expected if supply constraints continue to plague many economic sectors as they are now, Federal Reserve Board Chairman Jerome Powell said during a press conference Wednesday. Fed officials including Powell have repeatedly stated that consumer price increases would be "transitory," lasting 6-9 months, according to Forbes.

Weird flashback: Didn't Obama keep promising us that economic growth was just around the corner, and that our long-term malaise was therefore "transitory"?

"Inflation has increased notably and will likely remain elevated in coming months before moderating," Powell said during the press conference.

"As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly because supply bottlenecks in some sectors have limited how quickly production can respond in the near term," he continued.

The public's inflation fears are, quite rightly, rising as quickly as the price of gas:

Concerns about rising inflation, especially in housing and food costs, have jumped, doubling the fears of just three years ago, according to a groundbreaking "Inflation Index" survey provided to Secrets.

In the new Zogby Poll, the inflation that the public perceives has increased 10%. That is double what was felt in 2018.

Zogby Analytics pollster Jonathan Zogby told us, 'Americans' fear of inflation continues to rise. On a scale 1-10, where one stands for 'not at all afraid' and 10 for 'terrified,' average fear of inflation this year was 6.2, compared to last year's 5.9. Republicans and Donald Trump voters, as well as baby boomers and Generation X, are most worried about inflation."

Toy maker giant Mattel says it will be raising prices, just in time for Christmas.

You can now add toys to the growing list of products that global supply chain woes have made more expensive to produce.

Toymaker Mattel whose brands include Barbie, Hot Wheels, Fisher-Price and American Girl, said in an earnings conference call on Tuesday that it is raising prices in the second half of the year in the run-up to the holiday shopping season, which is the toy industry's most-important sales period of the year.

The effect of inflation of prices means that your wages' actual value has fallen 1.7%.

According to recently released data from the Bureau of Labor Statistics, "average hourly earnings" have increased from $29.35 in June 2020 to $30.40 in June 2021. When adjusting for inflation, however, "real average hourly earnings" have decreased 1.7% during that same period.

By comparison, when former President Trump left office, Bureau of Labor Statistics revealed that "real average hourly earnings" had risen 3.8% from January 2020 to January 2021.

...

While real average hourly earnings have steadily declined this year, wages rose to -1.7% in June -- an improvement compared to -3.7% and -2.9% in April and May, respectively. However, this minor boost appears feeble compared to the 4.2% real average hourly earnings reported for June, 2020.

After Biden's American Rescue Plan was passed in March 2021, inflation hit its highest level since the Great Recession for every following month.

Buh buh buh -- the Tweets!

Little wonder, then, that Rasmussen Reports finds that Biden is now officially underwater, with 52% disapproving and only 47% approving.

I guess the American citizenry isn't as pleased with Muh Tweets as the Twitter-Addicted establishment political class is.

posted by Ace at 05:29 PM

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