Nancy Pelosi got some bad news.
It concerned her political future.
And Nancy Pelosi looked at one number and instantly knew she was finished.
Democrats were counting on the economy being their saving grace next year.
Republicans only need to flip five seats to win back the majority in the House of Representatives.
Historically the president’s party loses on average over 20 seats in a midterm election.
And to add to the Republicans’ advantage, GOP-run state legislatures control the ability to draw the maps for over 180 seats while Democrat-run state legislatures are drawing the maps for around half that many seats.
Given that dire reality, Pelosi and her allies were counting on a historic economic boom brought about by the coronavirus vaccines developed under the Trump administration allowing for a complete return to normal life.
But those hopes suffered crippling body blows by the fact that Joe Biden’s big spending agenda is causing runaway inflation that is proving not to be temporary.
The latest report showed prices skyrocketing five percent from last year for the biggest jump since the economic collapse in 2008.
The Consumer Price Index rose five percent compared with a year ago, the Department of Labor said Thursday. On a monthly basis, the CPI rose a hotter than expected 0.6 percent.
Economists had expected the Labor Department to report that consumer prices rose 0.5 percent in May compared with April. The consensus forecast was for a 4.7 percent gain when measured against May of 2020, which would have been the hottest reading since skyrocketing energy prices pushed up the index in the fall of 2008.
To make matters worse, “core inflation” – this measures the prices of goods and services stripping out food and gas – rose more than the experts predicted.
Breitbart also reports:
The reading for core inflation, which strips out volatile food and energy prices, was expected to rise 3.5 percent compared with a year ago. That would have been the strongest annual increase in 28 years. On a monthly basis, economists were expecting a 0.5 percent gain.
In Thursday’s release, the government said core inflation rose 0.7 percent. On an annual basis, core inflation jumped 3.8 percent. This was the hottest reading since June 1992.
The price of used cars continues to shoot up as Joe Biden’s big government agenda causes the Federal Reserve to print money at a rate that devalues the dollar.
“The index for used cars and trucks continued to rise sharply, jumping 7.3 percent in May. Compared with a year ago, used car prices are up 29.7 percent,” Breitbart also reports.
Inflation is the most regressive tax increase as it hits poor and middle-class Americans the hardest.
Prices rise while their paychecks remain stagnant.
This erodes Americans’ purchasing power which constricts economic growth.
Joe Biden’s support for enhanced unemployment welfare policies already led to consecutive months of disappointing job growth as government checks paid Americans more to sit at home than they would earn back on the job.
Inflation would be the second half of a one-two punch to the economy that could leave it in tatters by next year.
And that could turn the political terrain for the midterm elections toxic for Democrats.
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