According to a poll issued on Friday, the majority of citizens believe the United States is deteriorating.
Prior to the launch of the Consumer Price Index the other week, an Economist/YouGov poll found 53% of Americans believe the economy is becoming worse. Only 15% of people believe the economy is improving.
The Problems Start Here
Hyperinflation is at the root of all economic woes.
Inflation is viewed as a very serious concern by 56% of Americans. Another 27% believe this is somewhat serious, while 9% believe it is simply a minor issue and 2% believe it is not a problem at all.
The impression of inflation is unaffected by income. People making less than $50,000 were as inclined as all those earning $50,000 to $100,000 or more than $100,000 to believe inflation is indeed a very major problem.
— Vik Soien (@VSoien) December 11, 2021
However, there is a political divide. Only 39% of Democrats believe inflation is a severe concern, compared to 76% of conservatives. 60% of Independents believe inflation is a significant issue.
At 58% and 59%, accordingly, suburban and rural Americans perceive inflation as a very severe problem. Inflation is a very major concern for 50% of city people.
In the views of most Americans, hyperinflation is inextricably related to the state of the economy. The best economic signal, according to 54% of respondents, is the price of products and services they buy, with jobs announcements and the rate of unemployment coming in second at 18%.
The stock market was voted first by 5% of respondents, while personal finances were placed first by 10%. Every income category, every age group, across the political scale, and across races regarded prices as the most important criteria.
Voters in the city, the country, and the suburbs all agreed. This could explain why the White House’s efforts to shift the focus from inflation to employment and the unemployment rate have failed.
This is Bigger Than Unemployment
Inflation, according to 42% of Americans, is currently more significant than unemployment. Unemployment and inflation are both important to 41% of people. Only 9% believe unemployment is more essential.
Producer prices rose by a record-breaking 9.6%, indicating a shocking degree of inflation is hurting the US economy.
The United States pays its debts when they are due. That’s why today, I signed a bill to fast-track the process to raise our debt limit. pic.twitter.com/Rx4MNC1XS9
— President Biden (@POTUS) December 11, 2021
Once you get past the headlines, things become worse. Costs are increasing even faster further down the supply chain, implying that goods shortages and even more inflation are on the way.
The Producer Price Index’s headline value reflects prices paid by domestic firms for “final demand” products and services, such as those sold to individuals, governments, or businesses as investments.
It is the subcategory that most closely mirrors the more well-known Consumer Price Index, which tracks prices paid by the consumers and includes imported items, unlike the PPI.
The PPI study also tracks goods sold for “middle demand,” or those supplied from one company to the next in the supply chain of products and services.