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The US economy contracted 1.4% as many economist were expecting an increase of 1% this fist quarter. To add to the concern year over year, consumer prices were up 8.5% in March, a 40-year high. Increases in rising fuel costs businesses are also constrained by supply-chain bottlenecks and employee shortages, adding to the cost of their operations which is all passed along to the consumer in the form of higher prices.
While wages are up inflation is putting many in the red as even with a 5% raise due to inflation the cost of living is up 3.5%.
As such only 34% of Americans approve of Joe Biden's handling of the economy. Overall 94% of Republicans think the economy is poor, while 81% of independents and 54% of Democrats also think the economy is poor. This is a major hit among some of the voters who put him in office. As stagflation and or a recession looms clearly the majority of voters are not happy when it comes to the economy.
While wages are up inflation is putting many in the red as even with a 5% raise due to inflation the cost of living is up 3.5%.
As such only 34% of Americans approve of Joe Biden's handling of the economy. Overall 94% of Republicans think the economy is poor, while 81% of independents and 54% of Democrats also think the economy is poor. This is a major hit among some of the voters who put him in office. As stagflation and or a recession looms clearly the majority of voters are not happy when it comes to the economy.
US Economy Shrinks 1.4% in Last Three Months
Posted from voanews.com
Economy
Joe Biden
Economics
Living
Edited 2 y ago
Posted 2 y ago
Responses: 4
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Work wise this is the slowest I have been in years, I'm getting very nervous !
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SSG (Join to see)
Lt Col Charlie Brown It goes to prove that the party system is just completely broken... even when the person they elected is wrong, they still hold onto the party lines... we have seen it with every single presidency in regards to poor performance ...
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SPC David S.
SSG (Join to see) - I feel politics in America is very broken - $5.2 billion on congressional and presidential campaigns in 2016. The politicians all got rich as well all that participated in the campaigns - what did the voters get in return? A president and congress no one approves of - its just not right.
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A 1.4% contraction would be a good thing..... If the inflation contracted with it.
The inflation was sparked in large part by trillions of dollars in "free" money thrown around by the government. This then sparked massive spending and a too-rapid expansion of the economy. A massive spike in demand without a chance for supply to meet it.
A contraction in the economy - signaling a reduction in demand - SHOULD be accompanied by a reduction in inflation, as the ramped up and ramping up supply rises to meet and maybe even exceed the now-lowered demand. That inflation is still staggeringly high, despite the contraction, is exceptionally worrying.
Fed is doing their job. Late, but they are doing it. The contracting economy shows that the rate hikes are doing their job. But no matter what they do, it can't work if the government doesn't stop throwing money at problems. And ESPECIALLY if they don't stop throwing money at problems that don't exist.(remember the "blue-state bailout" portion of COVID RELIEF? And remember how most of those states and cities are posting surpluses? Gosh, maybe all that money WASN'T needed.)
The inflation was sparked in large part by trillions of dollars in "free" money thrown around by the government. This then sparked massive spending and a too-rapid expansion of the economy. A massive spike in demand without a chance for supply to meet it.
A contraction in the economy - signaling a reduction in demand - SHOULD be accompanied by a reduction in inflation, as the ramped up and ramping up supply rises to meet and maybe even exceed the now-lowered demand. That inflation is still staggeringly high, despite the contraction, is exceptionally worrying.
Fed is doing their job. Late, but they are doing it. The contracting economy shows that the rate hikes are doing their job. But no matter what they do, it can't work if the government doesn't stop throwing money at problems. And ESPECIALLY if they don't stop throwing money at problems that don't exist.(remember the "blue-state bailout" portion of COVID RELIEF? And remember how most of those states and cities are posting surpluses? Gosh, maybe all that money WASN'T needed.)
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