U. S. gross domestic product shrank 1. 4% in the 1st quarter at the same time inflation ongoing to soar. For older people Americans, that combination conjures memories of 1970s stagflation, a nightmarish combination of double-digit inflation, double-digit interest rates, jumping gasoline prices and continually high unemployment. The entire fiscal mess got dumped on President Jimmy Carter’s lap after the 1976 election, although it was neither his difficulty nor the fault of his or her predecessors, Gerald Ford as well as Richard Nixon.

Sometimes, around the world economic forces converge much like weather systems to create a suitable storm, and woe for the president who gets trapped in it. The timing from the current storm couldn’t come to be worse for President May well Biden as he attempts to minimize the damage Democrats are bracing for in this year’s midterm elections. Republicans can be expected to rub Biden’s nostril in bad economic data, but voters would be wise to evaluate up on the facts rather than depend upon political spin.


Biden grew up honing an economy still inside pandemic shutdown mode. Manufacturers abroad, like here, experienced sent workers home along with curtailed production to halt usually the spread of the coronavirus. Client spending plummeted. Manufacturers offered off inventories to meet what ever demand there was. Fuel price tags had plummeted because drivers also were staying residence.

Suddenly, vaccines allowed Visitors to return to work, the freeways and the stores just as Joe biden was settling into the Shiny House. A surge in demand intended for everything crashed against the production and cargo-transportation logjam. Americans returned to their vehicles just as domestic and international oil producers opted that you restrict output. Pump prices skyrocketed.

Thus, inflation.

Usually the decline in gross regional product - in distinct contrast to the 6. 9% increase in the first quarter regarding 2021 - reflects a new decline in car cash flow because carmakers still cannot get the raw materials and microchips they need. Manufacturers, having reduced their inventories, now usually are struggling to meet consumer require. So , their sales usually are dropping.

Thus, stagnation.

Presidents Nixon, Ford and Davidson grappled for years with the blend of a global economic contraction, a couple of punishing Middle East essential oil embargoes, tens of thousands of troops returning to from Vietnam and an inadequate number of jobs to employ them. Biden, just like Carter and Nixon, also faced significant open public blowback from military debacles abroad: Nixon’s messy Vietnam pullout, Carter’s failed wager to rescue American hostages in Iran and Biden’s botched Afghanistan withdrawal.

There are no easy way for presidents to spin bad money news other than to make noticeable that there is a bright side - such as Biden’s reminder Thurs. that unemployment rates have not been this low since 70 - and to remind the general public that presidents in free-market economies have minimal capabilities to halt inflation or press economic growth. But any kind of one-term presidency and midterm pain awaits any mind who tries to shrug along these factors or ignore the strains faced by United states consumers (and voters).

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