Even if you get a raise at your job this year to cap off all that stimmy money the government gave you, you will likely be poorer when everything is said and done:
As the Bureau of Economic Analysis revealed, personal consumption spending rose by $130.5 billion dollars in August — representing a 4.3% year-over-year hike in the Personal Consumption Expenditures Price Index.
The PCEPI — used by the Federal Reserve to set its inflation rate targets — has risen for the past several months. In April, the metric hit a 3.6% year-over-year growth rate before rising to 4.0% in June and 4.2% in July.
The last time this inflation metric was this high was in 1991.
To add insult to injury, personal wage earning isn't keeping up with the surge in costs.
Also in August, personal income rose by $35.5 billion and disposable income rose by $18.9 billion. Government stimulus measures — especially the Child Tax Credit — played a significant role in the higher income levels.
Translation: Without the stimmy funds, the problem is far worse.
Because the $130.5 billion increase in expenses vastly outpaced earnings, however, the Bureau of Economic Analysis' findings show that purchasing power is diminishing.
Welcome to the inflation hamster wheel!
Like Sisyphus being sentenced by the gods to roll a rock up a hill for eternity, you'll get to work hard to make more money while actually earning less!!
