Inflation is usually associated with an "overheated" economy i.e., one that is growing too rapidly. Even in the case of an expanding economy, inflation can be problematic.
However, most indications show that the economy now is contracting, or at least it is slowing down dramatically. So we have the compounded problem of a weak economy and rising gas and food prices.
The Bush debt spending strategy is not working.
Barack has a long-term solution that includes increasing energy independence and investing in green technology that will create millions of new jobs.
However, to relieve those who are getting hit the hardest by soaring inflation, Barack also has a short-term assistance program that will provide, for example, an immediate $1,000 energy rebate.
Here's the statement released this morning.
Today, we got the truly shocking news that inflation hit a 17-year high of 5.6 percent as the prices of gas and groceries continued to soar. Families have now lost an entire decade’s worth of raises to inflation as weekly earnings adjusted for inflation lie below the level they reached in August 1998. While Senator McCain apparently thinks the economy is doing just fine, and refuses to support any meaningful, short-term relief for America’s struggling families, Barack Obama has proposed an Emergency Economic Plan that would immediately put $1,000 in the pocket of families to help them pay for gasoline, groceries and other necessities. In addition, the Obama plan includes $50 billion in immediate measures to save more than one million jobs from being lost. America cannot afford four more years of a policy that puts tax cuts for the wealthy and corporations ahead of the real change America’s middle-class families need.
1 comment:
McCain's statement on the economic inflation:
"Everything is fine. Or not. I don't really know what inflation means, anyway. I was in a war! 9/11!"
-Dan Cheek
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