{"id":2019139,"date":"2023-09-01T09:44:05","date_gmt":"2023-09-01T13:44:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/key-inflation-metric-moves-wrong-way-in-new-govt-report-combines-with-income-stagnation-to-fuel-debt-spiral\/"},"modified":"2023-09-01T09:44:05","modified_gmt":"2023-09-01T13:44:05","slug":"key-inflation-metric-moves-wrong-way-in-new-govt-report-combines-with-income-stagnation-to-fuel-debt-spiral","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/key-inflation-metric-moves-wrong-way-in-new-govt-report-combines-with-income-stagnation-to-fuel-debt-spiral\/","title":{"rendered":"Key Inflation Metric Moves Wrong Way in New Gov&#8217;t Report, Combines with Income Stagnation to Fuel Debt Spiral"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">36<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkey-inflation-metric-moves-wrong-way-in-new-govt-report-combines-with-income-stagnation-to-fuel-debt-spiral%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2019139&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>New data about the economy shows that Americans spent money as if they had it this summer, but a new report suggests the party may not last much longer.<\/p>\n<p>A Commerce Department report noted that consumer spending rose 0.8 percent in July, according to <a href=\"https:\/\/www.reuters.com\/markets\/us\/us-consumer-spending-july-surges-weekly-jobless-claims-fall-2023-08-31\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>, but Jennifer Lee, a senior economist at BMO Capital Markets in Toronto noted that \u201cthere are some warning signs coming from the consumer as the savings rate continues to tick down.\u201d<\/p>\n<p>Ask Dollar General, which says it is not going to make the profit it expected because customers are not buying.<\/p>\n<p>\u201cOur core customers continue to tell us they feel financially constrained,\u201d chief executive Jeff Owen said, according to the <a href=\"https:\/\/www.wsj.com\/business\/earnings\/dollar-general-dg-q2-earnings-report-2023-5109a5cc\" target=\"_blank\" rel=\"noopener\">Wall Street Journal<\/a>. \u201cHer savings are gone, and so certainly she is still living with the inflationary pressures.\u201d<\/p>\n<p>A new report showed inflation is not licked yet. What\u2019s known as the personal consumption expenditures price index rose 0.2 percent in July, the Commerce Department reported Thursday. The index is up 3.3 percent above a year ago, according to <a href=\"https:\/\/thehill.com\/business\/4180707-key-inflation-measure-rises-as-incomes-decelerated-in-july\/\" target=\"_blank\" rel=\"noopener\">The Hill<\/a>.<\/p>\n<p>Rising prices are accompanied by reports showing that personal income rose only 0.2 percent in July, which was down from 0.3 percent in June. Disposable income dipped 0.2 percent once it was adjusted for inflation. Spending that outpaces incomes leads to debt, meaning credit card and other consumer debt is above $1 trillion again as it was before the pandemic inflated savings.<\/p>\n<p>The personal saving rate dropped to 3.5 percent in July, down from 4.3 percent in June, according to <a href=\"https:\/\/www.cnn.com\/2023\/08\/31\/economy\/pce-inflation-july\/index.html\" target=\"_blank\" rel=\"noopener\">CNN<\/a>.<\/p>\n<p>Behind the headline numbers, a new\u00a0Lending Club survey shows a lot of Americans are <a href=\"https:\/\/www.westernjournal.com\/bidenomics-fail-americans-increasingly-forced-dip-retirement-accounts-make-ends-meet-major-bank-reveals\/\" target=\"_blank\" rel=\"noopener\">just getting by<\/a>, according to <a href=\"https:\/\/www.cnbc.com\/2023\/08\/31\/living-paycheck-to-paycheck-inflation-is-still-squeezing-budgets.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a>.<\/p>\n<p>The study found that 78 percent of consumers who earn under $50,000 a year and 65 percent of those who make between $50,000 and $100,000 annually were living paycheck to paycheck in July. Forty-four percent of those earning more than $100,000 a year were living check to check, the study said.<\/p>\n<p>\u201cConsumers are undoubtedly continuing to feel the impact of inflation and rising interest rates,\u201d said\u00a0Chris Fred, TD Bank\u2019s head of credit cards and unsecured lending.<\/p>\n<p>Amid the uncertainly, <a href=\"https:\/\/www.westernjournal.com\/biden-tries-explain-bidenomics-giant-whiteboard-backfires-immediately\/\" target=\"_blank\" rel=\"noopener\">President Joe Biden<\/a> has been declaring victory.<\/p>\n<p>\u201cThe way I look at it, Bidenomics is just another way of saying \u2018restoring the American Dream,\u2019\u201d Biden said this week.<\/p>\n<p>E.J. Antoni, a research fellow in regional economics with the Heritage Foundation\u2019s Center for Data Analysis, disagreed, according to <a href=\"https:\/\/www.foxbusiness.com\/politics\/economist-slams-biden-utterly-appalling-claim-about-bidenomics-nightmare\" target=\"_blank\" rel=\"noopener\">Fox Business<\/a>.<\/p>\n<p>\u201cRestoring the American Dream?\u201d Antoni said. \u201cThat\u2019s an utterly appalling claim for an American president to make right now, given the state of the housing market. The American Dream is owning your own home, and the policies of this administration have made that all but impossible for nearly an entire generation of Americans.\u201d<\/p>\n<p>The monthly\u00a0<a href=\"https:\/\/www.westernjournal.com\/new-biden-admin-plan-raises-mortgage-costs-borrowers-good-credit-scores-subsidize-others\/\" target=\"_blank\" rel=\"noopener\">mortgage payment\u00a0<\/a>on a median price home was $979 when Biden entered the White House but is $2,075 now, Antoni said.<\/p>\n<p>\u201cAn American family is now paying over $13,000 a year more for the same house,\u201d Antoni said. \u201cThe situation is no better for renters, who face record prices for their housing, too, with high rents making it difficult to save for a down payment. The Biden administration has turned the American Dream into a nightmare.\u201d<\/p>\n<p>Desmond Lachman, a resident fellow at the American Enterprise Institute, said Biden\u2019s policies let loose the demon of <a href=\"https:\/\/www.westernjournal.com\/inflation-rises-months-decline-new-bureau-labor-statistics-report-shows\/\" target=\"_blank\" rel=\"noopener\">inflation<\/a>.<\/p>\n<p>\u201cThe key point that Biden is omitting to mention is that his excessively expansionary budget policies helped cause a surge in inflation to a multi-decade high,\u201d Lachman said. \u201cThat in turn has forced the Fed to slam on the monetary policy brakes, which could be setting us up for financial market strains and a hard economic landing next year.\u201d<\/p>\n<p>Biden is \u201cfailing to mention the explosion in the country\u2019s debt level under his watch, which is going to constitute a strong headwind for the country\u2019s long-term economic growth prospects,\u201d he said.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/key-inflation-metric-moves-wrong-way-new-govt-report-combines-income-stagnation-fuel-debt-spiral\/\">Key Inflation Metric Moves Wrong Way in New Gov&#8217;t Report, Combines with Income Stagnation to Fuel Debt Spiral<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New data about the economy shows that Americans spent money as if they had it this summer, but a new report suggests the party may not last much longer. A Commerce Department report noted that consumer spending rose 0.8 percent in July, according to Reuters, but Jennifer Lee, a senior economist at BMO Capital Markets<\/p>\n","protected":false},"author":661,"featured_media":2019141,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2019139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2019139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/661"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2019139"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2019139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2019141"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2019139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2019139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2019139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}