With his Building Backwards Better programme, President Joseph R. Biden (D) continues the inflationary policies of his predecessor, President Jimmy Carter (D), who presided over the country more than 40 years ago.
Carter served one term as president in the late 1970s. He did the following: President Carter took office in 1977 with an economy that was beginning to recover from a recession. He had been critical of former President Ford’s inability to keep inflation under control and alleviate unemployment. Yet, inflation and unemployment were far higher under Carter’s presidency than they had been at his inauguration.
Between 1976 and 1980, the yearly inflation rate climbed from a little under 4% to more than 6.8% in 1977, 9.0% in 1978, and 11% in 1979, hovering around 12.0% throughout the 1980 election campaign. The federal deficit for 1979 was $27.7 billion and for 1980 was approximately $59 billion, despite Carter’s commitment to erase the debt. By the time of the election campaign, the unemployment rate had stabilized at 7.7% across the country, but in some industrial states, it was much higher.
Here we are today, a decade later. Biden is well on his way to Building Backwards Better, as evidenced by November’s Wholesale Producer Price Index numbers issued yesterday, December 14, by the U.S. Bureau of Labor Statistics. Inflation is now worse than it was under Carter. So, while Vice President Biden enjoyed a lavish Thanksgiving on a billionaire’s Nantucket mansion, middle-class Americans are paying more for necessities but getting less.
Service prices rose 0.7% in November, while the cost of final demand goods rose 1.2%. For the first time since July, the index for final demand minus food and energy and trade services increased by 0.7% in November. Since August 2014, when 12-month data were first compiled, prices for the final market, excluding food, energy, and trade services, have increased 6.9%.
For those who don’t want to read the BLS’s depressing report, which is filled with facts in the form of numbers and graphs, here is a summary of the most important findings. CNBC sums it up in a few words: Producer prices rose 9.6% in November, a new record, beating expectations of a 9.2% increase. “A new record!”