The stock market continued its downward spiral on Thursday as the economy struggles to cope with Democrats’ reckless spending adding fuel to runaway inflation.
All three benchmark indexes closed under their opening value with the Dow Jones Industrial Average down more than 450 points. The NASDAQ dropped nearly 3 percent Thursday and the S&P 500 fell by nearly 80 points.
The Dow’s decline marks a continued trend since the signature passage of President Joe Biden’s dubiously named “Inflation Reduction Act” on Aug. 16. The Dow Jones Industrial Average has now fallen nearly 5,000 points, or more than 14 percent, in the aftermath of Biden’s bill becoming law.
The U.S. inflation rate, meanwhile, remains at a four-decade high with Labor Department data out in early September revealing that prices rose 8.3 percent last month over the year prior. When Biden celebrated the bill’s passage at the White House in mid-September, markets continued to plunge as James Taylor played “Fire and Rain” on the South Lawn.
In July, official GDP numbers revealed two consecutive quarters of negative growth, meaning the country is in a recetion. The Biden administration responded by pretending the recession doesn’t exist and sought to redefine the term, and his lapdogs in the corporate media followed the administration’s lead.
“Most economists and most Americans,” Treasury Secretary Janet Yellen told reporters, “have a similar definition of recession — substantial job losses and mass layoffs, businesses shutting down, private sector activity slowing considerably, family budgets under immense strain. In sum, a broad-based weakening of our economy. That is not what we’re seeing right now.”
Most Americans are struggling to cope with inflation, however, with prices for gas and groceries increasing far higher than what they were when Biden took office. The nationwide average for a gallon of gasoline, for example, is $1.36 higher than in January 2021.
According to a survey published by the University of Michigan the month before Yellen’s comments to reporters, consumer sentiment plunged to its lowest record. Inflation also remains at the top of voters’ minds in poll after poll headed into the November midterms. Yet in an interview with CBS’s “60 Minutes,” Biden claimed the inflation rate was up “hardly at all.”
As the nation’s economic health continues to deteriorate, the stock market will keep collapsing. The falling markets have already wiped out more than $9 trillion in U.S. household wealth.
Reporting from The Federalist.