Food and fuel prices continue to rise each monthas consumers feel the pinch, at the pump as well as the local grocery store. The Consumer Price index has risen 1.6% in the last two months, which on the face of it, appears to be a minimal increase (WWLP- Springfield), however, with wholesale prices rising (Reuters), across the board inflation is eminent.
When inflation begins to climb, and that rate is added to the unemployment rate, one is experiencing what is known as the “misery index”, which is a combination of both the rate of inflation and the unemployment rate. At no time in history has this been more severe than under former President Jimmy Carter, the eventual outcome was a one-term Carter Presidency and the beginning of the Reagan Era.
To date, President Obama has followed the Carter model in all aspects of governing, it should, therefore, come as no surprise, should he encounter a misery index to equal Carters.
The Commodity Factor
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment