Economic uncertainty reigns as the grip of inflation persists
NBCMar 30
US Stock Market Falls as Inflation Rises
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Image copyright: Michael M. Santiago/Staff/Getty Images News via Getty Images
The Facts
The US Bureau of Labor Statistics (BLS) revealed Wednesday that inflation jumped from 3.2% year-over-year in February to 3.5% in March. Meanwhile, 12-month core inflation, which excludes volatile food and energy prices, was 3.8%.
Following the report, which shows gasoline and housing accounted for half the price hike, the Dow Jones stock market index dropped by over 500 points or 1.3%. The S&P 500 and Nasdaq each fell 1%.
The Spin
Republican narrative
While the president can't control the whole economy, his policies on cars have been one of the leading causes of this inflationary crisis. Car insurance and repairs, which are up 22% and 12%, respectively, are due to Biden's push for electric vehicles. As gas prices soar and the White House pushes its electric vehicle agenda, Americans have been forced by the federal government to pay exorbitant amounts of money. The Biden administration must own this.
Democratic narrative
America's economic debate has unfortunately been pushed into a partisan one based on perception rather than reality. Despite inflation cascading down from its post-COVID peak and both employment and wages increasing, Republican politicians have defaulted to toxic rhetoric to stain the Biden presidency ahead of his re-election bid. Today's headlines should be about Democrats containing inflation while also forgiving student loans and expanding healthcare.
