Inflation Surges Thanks To Rising Gas Prices, Hitting Americans In The Pocketbook, While Obama’s Policies Exacerbate The Problem
“Inflation Accelerated To Its Fastest Annual Pace In Two And A Half Years In April, As Surging Gas Prices Continued To Hit American Consumers.”(Annalyn Censky, “Inflation Rises At Fastest Rate Since October 2008,” CNN Money, 5/13/11)
INFLATION SURGES CAUSING AMERICANS TO CUT BACK ON SPENDING
“With Rising Prices On Everything From Big-Ticket Items Like College Tuition To Food And Gas, Consumers ‘Feel They Don't Have Any Safe Ground To Stand On,’ Barone Notes.”(Nina Easton, “Inflation: Poison For Obama In 2012,” CNN Money, 5/9/11)
Rising Gas Prices Are Changing Consumer Habits And Causing Families To Cut Back On Spending. “The poll found 62 percent of Americans had reduced the amount of driving they did because of gas prices and 68 percent had cut back on other expenses. Nearly half, about 45 percent, had changed their vacation plans to stay closer to home. The rising cost of driving is hitting the U.S. economy. U.S. retail sales rose modestly in March as auto sales plunged and consumers stretched to pay for pricey gasoline.” (John Whitesides, “High Gas Prices Hurting Confidence, Changing Habits,” Reuters, 4/13/11)
42 Percent Of Americans Are Cutting Back On Groceries To Pay For Gas. “U.S. shoppers are also increasingly cutting back on grocery spending as they spend more at the pump. More than 42 percent of the 1,000 surveyed said they curtailed spending in the grocery aisles of retailers.” (Dhanya Skariachan, “Americans Buy Less Food As Gas Prices Rise: Survey,” Reuters, 5/12/11)
- “‘When You Got
Numbers Like That, That's Not Good For The Economy,’ Beemer Said.” (Dhanya
Skariachan, “Americans Buy Less Food As Gas Prices Rise: Survey,” Reuters, 5/12/11)
AND PUTTING ANY HOPES OF ECONOMIC GROWTH ON ICE
Inflation Could Make The Weak Economy Even Weaker. “Today, raising interest rates might make a weak economy even weaker, stifling what meager growth there has been in wages.” (Neil Irwin, “Inflation Inflicting Pain, As Wages Fail To Keep Pace With Price Hikes,” The Washington Post,5/9/11)
·
And
Make The “Massive Budget Deficits” Even More Expensive. “Moreover, higher interest would make
the nation’s massive budget deficits even more expensive to finance, taking an
additional toll on the economy.” (Neil Irwin, “Inflation
Inflicting Pain, As Wages Fail To Keep Pace With Price Hikes,” The
Washington Post,5/9/11)
Falling
Retail Sales Doesn’t “Bode Well For The U.S. Economy” Since Consumer Spending
Accounts For Over Two Thirds Of The Economy. “The findings don't bode well for the
U.S. economy, which struggled to gain momentum early in the second quarter,
with retail sales posting their smallest rise in nine months in April. Consumer
spending accounts for more than two-thirds of the U.S. economy.” (Dhanya Skariachan,
“Americans Buy Less Food As Gas Prices Rise: Survey,” Reuters, 5/12/11)Since “Inflation Has Come From Dollar Depreciation… It Will Cause The Economy To Slow.” “‘The Fed wanted higher inflation, but they should be careful what they wish for,’ said Chris Low, chief economist at FTN Financial in New York. ‘Because so much of the inflation has come from dollar depreciation raising costs, it will cause the economy to slow.’” (Lucia Mutikani and Pedro Nicolaci da Costa, “Import, Small Business Data Point To Inflation,” Reuters, 5/10/11)
Source: Republican national Committee Research, www.gop.com
