{"id":2217894,"date":"2024-04-10T19:56:02","date_gmt":"2024-04-10T23:56:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-and-the-two-sides-of-the-american-economy\/"},"modified":"2024-04-10T19:59:36","modified_gmt":"2024-04-10T23:59:36","slug":"inflation-and-the-two-sides-of-the-american-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-and-the-two-sides-of-the-american-economy\/","title":{"rendered":"Understanding the Impact of Inflation on the US Economy"},"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\">18<\/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%2Finflation-and-the-two-sides-of-the-american-economy%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=2217894&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>The US \u200beconomy paints a \u200bdual picture: positive macroeconomic\u2064 indicators conceal microeconomic struggles. Despite job growth, sectors like healthcare dominate, part-time roles rise, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-politicians-help-the-fortune-500-discard-gop-voters\/\" title=\"GOP Politicians Help the Fortune 500 Discard GOP Voters\">foreign-born workers<\/a> drive employment gains. Increased inflation impacts finances, pushing Americans to take \u2062multiple jobs and \u200ccut back\u200b on essentials. Financial strains worsen \u200cwith rising debt and commodity prices, challenging economic\u2063 stability.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><span style=\"font-weight: 400\">Last week\u2019s jobs report, combined with Wednesday\u2019s <\/span><a href=\"https:\/\/www.wsj.com\/livecoverage\/cpi-report-today-inflation-stock-market-04-10-2024\"><span style=\"font-weight: 400\">inflation number<\/span><\/a><span style=\"font-weight: 400\">, shows that we are living in two economies. One, in which the macroeconomic, top line numbers, combined with the stock market points to a robust economy. The second, in which the microeconomic numbers point to Americans struggling to make ends meet.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The United States labor market added more than 300,000 <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/04\/05\/heres-where-the-jobs-are-for-march-2024-in-one-chart-in-one-chart.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">jobs<\/span><\/a><span style=\"font-weight: 400\">  in March, which on the surface is excellent news. Unfortunately, the top sectors for gains \u2014 health care, social assistance, government jobs, and leisure and hospitality \u2014 drove the growth, accounting for more than <\/span><span style=\"font-weight: 400\">60%<\/span><span style=\"font-weight: 400\">  of the gains for the month. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Conservatives, of course, want the government to be shrinking in size, not growing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Beneath the surface, the numbers spell bad news for working Americans.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The growth in employment came from part-time, not full-time jobs.<\/span><\/p>\n<p><span style=\"font-weight: 400\">An additional 525,000 part-time jobs were added in <\/span><a href=\"https:\/\/pro.thestreet.com\/market-commentary\/theres-a-serious-catch-in-the-jobs-report-and-no-one-is-talking-about-it\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">March<\/span><\/a><span style=\"font-weight: 400\">  and full-time jobs decreased by 222,000, according to The Street.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The <\/span><a href=\"https:\/\/www.newsweek.com\/immigrants-get-100000-new-jobs-one-month-1887354#:~:text=Diane%20Swonk%2C%20KPMG%27s%20chief%20economist,she%20said%20in%20a%20note.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">growth<\/span><\/a><span style=\"font-weight: 400\">  in employment is primarily being driven by foreign-born workers, who have filled more than 1.25 million jobs over the last two months while the number of newly employed native-born Americans only increased by 435,000 over the same time period. As The New York Post noted, this helps to explain why <\/span><a href=\"https:\/\/nypost.com\/2024\/04\/05\/business\/us-employers-add-303k-jobs-in-march-unemployment-ticks-lower\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">wages<\/span><\/a><span style=\"font-weight: 400\">  increased at a modest <\/span><span style=\"font-weight: 400\">4.1%<\/span><span style=\"font-weight: 400\">  from a year ago, the smallest increase since June of 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400\">It is getting harder to make ends meet.<\/span><\/p>\n<p><span style=\"font-weight: 400\">At the start of 2024, 8.7 million people were working <\/span><a href=\"https:\/\/finance.yahoo.com\/news\/8-7-million-americans-now-193011733.html?guccounter=1&#038;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&#038;guce_referrer_sig=AQAAAMdnvpG6jLSb5Ete-vfg-p37rW6obahlKfRMwpoebJ5JKHMbbX3YihV55W49tAb2huZGSKGbHCEyqQ2lBA6_TrVSbGdxxJXLmBleJ6l_k5iSJdNragzOV-lgdRcKxs7KeKLYo2AFzjoFeSGCLQvDYAqdBvEa9SdqyCSa2e4OE8MK\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">multiple<\/span><\/a><span style=\"font-weight: 400\">  jobs in the United States, in order to fill their cars with gas and put food on the table. A report in USA Today found that at the start of 2024 there were 4.2 million people working <\/span><a href=\"https:\/\/www.usatoday.com\/story\/money\/2024\/01\/25\/part-time-jobs-hit-record-high\/72331112007\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">part-time<\/span><\/a><span style=\"font-weight: 400\">, not by choice, but because their employers reduced hours or they could not <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oakland-to-enroll-600-families-of-color-in-guranteed-income-pilot-program\/\" title=\"Oakland to Enroll 600 Families of Color in \u2018Guranteed Income\u2019 Pilot Program\">find full-time work<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This combination of the growth in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/these-21-states-are-opting-out-of-enhanced-unemployment-benefits-heres-what-you-need-to-know\/\" title=\"These 21 States Are Opting Out Of Enhanced Unemployment Benefits. Here\u2019s What You Need To Know.\">part-time work<\/a> and depressed wages point to a weak job market, not a strong job market. The number of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenomics-is-so-bad-its-a-punchline-but-americans-arent-laughing\/\" title=\"Bidenomics' is a laughable punchline, but Americans aren't amused\">people working multiple jobs<\/a> also artificially inflates the job numbers, as each job counts, not each person.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The rising tide of a \u201chot\u201d jobs market and a soaring stock market is not lifting all boats. The <\/span><a href=\"https:\/\/www.morningstar.com\/markets\/is-stock-market-expensive-right-now\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">stock market<\/span><\/a><span style=\"font-weight: 400\">  rose nearly <\/span><span style=\"font-weight: 400\">8%<\/span><span style=\"font-weight: 400\">  in the first quarter of 2024 and is up more than 25<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  since its October 2023 lows, according to Morningstar.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, there\u2019s a marked increase in emergency 401(k) withdrawals, auto repossessions, and record numbers of people backing out of agreements to purchase a home.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Nearly 3.6<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  of workers who have a 401(k) <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">retirement<\/span><\/a><span style=\"font-weight: 400\">  plan made a hardship withdrawal in 2023, a major increase from the 2.8<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  in 2022. The pre-pandemic average was 2%. <\/span><span style=\"font-weight: 400\">The Federal Reserve <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Bank<\/span><\/a><span style=\"font-weight: 400\">  of New York reported that \u201cthe annual rate for car owners behind a month or more on their payments was 7.7<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">, the highest rate since 2010.\u201d <\/span><span style=\"font-weight: 400\">And in November 2023, nearly 17<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  of potential home buyers backed out of their agreement to purchase a home for which they had signed a contract.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Perhaps this explains why Americans are skipping meals to afford housing. A study from Redfin, as reported by <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">CBS News<\/span><\/a><span style=\"font-weight: 400\">  shows that half of homeowners and renters have had to make sacrifices to afford their mortgage or rent payment. Homeowners report selling belongings, working overtime, canceling vacations, taking on a second job, and skipping meals in order to make a mortgage payment.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The March 2024 <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Consumer Price Index<\/span><\/a><span style=\"font-weight: 400\">, the common measure of inflation, was at 3.5<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">, above expectations, driven by energy, food, and shelter; the basket of needs for all Americans. Core CPI, which excludes volatile variables such as fuel and food was at 3.8<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">. Both numbers were hotter than expected. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Dow futures immediately <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">dropped<\/span><\/a><span style=\"font-weight: 400\">  over 500 points upon the release of March\u2019s inflation numbers.<\/span><\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Cumulative<\/span><\/a><span style=\"font-weight: 400\">  inflation since January 2021, when Joe Biden took office, is 18<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">, 6<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  per year \u2014 three times the Federal Reserve\u2019s target of 2%.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Working Americans do not care about The Fed\u2019s inflation target, they care that, since Biden took office, it now takes nearly $120 to buy what $100 would buy you at the end of the Trump presidency.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Americans are also seeing <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">inflation<\/span><\/a><span style=\"font-weight: 400\">  at the pump, according to NerdWallet. Oil is at $85 per barrel, and the average regular gas price in the United States, as of April 5, was $3.582 per gallon, 22 cents higher than March\u2019s average. The price of a gallon of gas has increased 49 cents since the start of 2024.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Commodity prices are rising, with <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">gold<\/span><\/a><span style=\"font-weight: 400\">  at record highs, signaling that people are bearish on the U.S. economy and the U.S. Dollar.<\/span><\/p>\n<p><span style=\"font-weight: 400\">It is no wonder credit card <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">debt<\/span><\/a><span style=\"font-weight: 400\">  is <\/span><span style=\"font-weight: 400\">at record<\/span><span style=\"font-weight: 400\">  highs, topping $1.13 trillion. Working Americans are not maxing out their credit cards in order to fly to Paris, pay for massages, or by that 75-inch TV. No, they are buying groceries, gas, and paying their utility bills, <\/span><span style=\"font-weight: 400\">and paying<\/span><span style=\"font-weight: 400\">  nearly 25<\/span><span style=\"font-weight: 400\">%<\/span> <a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">interest<\/span><\/a><span style=\"font-weight: 400\">  for the privilege of doing so.<\/span><\/p>\n<p><span style=\"font-weight: 400\">More <\/span><span style=\"font-weight: 400\">than<\/span><span style=\"font-weight: 400\">  33<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  of Americans have more credit card <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/401k-hardship-withdrawals-surge-another-record-high-inflation-stings\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">debt<\/span><\/a><span style=\"font-weight: 400\">  than emergency savings and <\/span><span style=\"font-weight: 400\">56 million Americans have been in credit card debt for at least a year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Nearly one-third of residents in the country\u2019s largest 100 metropolitan cities were behind on at least one debt payment in Q3 2023, and more than 25<\/span><span style=\"font-weight: 400\">%<\/span><span style=\"font-weight: 400\">  had delinquencies of 90-days or more. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Americans are working more part-time jobs, making less money, losing their cars, and unable to purchase a home. If they can afford a home, lunch becomes a forgotten meal.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Commodity prices are rising, gas is more expensive, and inflation is certainly not transitory. None of the indicators point towards an interest rate cut by the Federal Reserve in 2024. In fact, one could argue that we need another quarter-point increase in rates.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Will the Fed play a political role and give Joe Biden the gift of interest rate cuts, or will the Fed fulfill its apolitical charter and guide the economy?<\/span><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent job report and inflation data highlight a dual economy in the US. While top-line figures and stock market performance suggest economic strength, microeconomic indicators reveal many Americans facing financial challenges. This disparity underscores the complexity of the US labor market<\/p>\n","protected":false},"author":1881,"featured_media":2217895,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/04\/GettyImages-1609437977.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2217894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/04\/GettyImages-1609437977.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2217894","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\/1881"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2217894"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2217894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2217895"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2217894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2217894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2217894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}