March 13, 2012 2 Comments
The media is boasting at the supposed economic recover. We’re to be excited about 250,000 or so new jobs. That’s great and all but we would need three years of 250,000 new jobs every month just to get back to the level of employment we had prior to the recession. The Obama administration unemployment figure of 8.3% is artificially low as they “seasonally” adjust rates to suit those in power and throw millions of Americans who have given up finding a job out of the ranks of the unemployed. The truth is that the economic recovery is very weak.
The biggest problem with the economic recovery, besides the fact that it is so slow, is inflation. Listen to the government and they’ll tell you that the inflation rate is 3.1%. They figure this number with a basket of goods that doesn’t include volatile products such as gas and food. In other words, they figure inflation by leaving out the things that hit middle class families the hardest.
If we were to figure inflation by looking at more than big ticket items like cars and houses (which with recent price drops keeps the government number artificially low) and instead looked at food, gas and other basic household expenses we would see the inflation rate is really 8.1%. Combine the government number and the volatile goods rate and we come up with an inflation rate of 5.6%. Since families buy both everyday goods and big ticket items, this number isn’t an unreasonable reflection of the current inflation rate.
When Obama runs for re-election he isn’t going to be running on the price of cars or homes. He’s going to be running against gas prices and food prices, which coupled with salary stagnation have reduced the quality of life for the average middle class family. Whether the Democrats like it or not, people are going to pass buy a gas station on their way to vote and if prices continue on the path they’re on now it won’t be good for the President. Gas prices averaged over $3.50 in 2011. They’re already approaching $4.00 this year and we haven’t even hit the heavy driving season or the government created cost increase also known as the summer blend. That doesn’t bode well for the President.
Gas isn’t the only commodity that has increased in price over the last few years. Meat, corn, wheat and rice have all gone up substantially. As such the price of making burgers for dinner is increased, cereal prices have increased substantially and the price of milk has increased by as much as a third in the past couple years. No wonder Obama is losing women voters. The real inflation rate perhaps explains why the administration is making up issues such as the contraception issue. They’ll do anything to deflect women’s attention away from the prices at the grocery store.
Polls for Obama have gone down over the past few weeks. They coincide with a substantial increase in gas prices. Obama was in perfect position a month ago. The GOP is fighting, no one likes any of the candidates. While the GOP candidates fight like children, Obama suddenly looked Presidential in comparison. Economic numbers were slightly improving, which helped him. The bottom has fallen out because of gas prices but there were warning signs in Obama’s poll numbers all along.
Lurking in the background was a female problem. Seeing the real inflation rate tells us why Obama was having trouble with them. Women do more grocery shopping than men, they see the price increases at the store while men often only see gas pump prices. Obama’s numbers among women have been down for awhile now. It’s clear why Obama made a desperate attempt to turn contraception into an issue. Obama cannot afford to lose women and he’s losing them right now because women are fed up with milk that costs over $3 a gallon. Inflation could be the issue that silently destroys this President.