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Tipsheet

This Washington Post Story About the Economy and Inflation Did Not Age Well

AP Photo/Manuel Balce Ceneta

In case you missed it, the economy took another big hit after the latest inflation report exceeded economists' expectations for both the main and core CPI. The costs of goods and services went up 0.1 percent in August and are up 8.3 percent in the last 12 months.

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Three days ago, the Washington Post ran an article about how "Americans are finally feeling better about the economy":

"After months of gloom, Americans are finally starting to feel better about the economy and more resigned to inflation.

"Consumer sentiment, which hit rock bottom in June, has begun inching up in recent weeks. Gas prices are down. Decades-high inflation appears to be easing. And at the same time, Americans are making small changes — buying meat in bulk, for example, or shifting more of their shopping to discount chains — suggesting that many families are learning to deal with higher prices."

The winner in the economy supposedly doing better, according to WaPo? President Joe Biden: "That’s particularly good news for the White House, which has been hammered by criticism that it hasn’t done enough to address inflation."

The story goes on to say that one reason why feelings about the economy were rebounding was due to the price of gas dropping from the average high of $5 earlier this summer. What was left out in the story is that part of the reason why gas prices have dropped is because Biden ordered more barrels of oil to be released from the Strategic Petroleum Reserve, dropping the inventory to its lowest levels in recent history. While there might be short-term gains from the release, it leaves the U.S. more vulnerable with future problems.

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