Published On: Fri, Jun 10th, 2022

The cost of the incompetent populism

The figures published last Friday, June 10, are pompous in demonstrating the high cost of the incompetent populism.

This fact we already knew of what happened in Venezuela, Nicaragua, Cuba, Argentina, Turkey, among others, but in the USA we have not seen this for more than 40 years, since the unbeatable incompetence, Jimmy Carter who, at least, was only incompetent, but did not have the pressure from the leftist to help him in his ills.

The current occupant of the White House, overreacted in the dose.

Inflation (which, in the occupant’s say) would only be fleeting, reached 8.6%, in consumer prices. Worse, rather than starting the desired and promised decline, it increased 1% in the last month compared to April. Setting an even faster pace of 2008.

When and if, starting to lower inflation will be a painful and unfortunately time-consuming process.

The increases were widespread in all fields. The cost of energy increased 34.6% in one year. Gasoline increased 7.8% from April to May. If we consider the increase of 16.9% in May, considering a one-month basis, in the last 12 months the increase was an incredible 106.7%.

But there’s no stop for American citizens. The cost of housing, which occupies 1/3 of the CPI that benefits the cost of families, rose 0.6% , the highest since 2004!, and , with this, we had an increase of 5.5% that was the fastest since 1991. Amazing!!!

Last month’s increases, show that inflation it is not declining according to what have said the occupant of the White House and… until little of the head of the FED. Food rose, 1.2% in the month, in them, dairy 2.9% ( the highest monthly high since 2007), non-alcoholic beverages 1.7%, meat and fish 1.1% INTHE MONTH!!!

Even with the real wage increase, there has been a 3% decline in purchasing power in the last year.

The FED, which acted politically to support the dismembers of the current government, has now seen transferred to them, the responsibility of inflation, which is true, because they had a sinful omission, but even they are responsible, they are not guilty, because the dismembers was the federal government.

If it was not  for the actions of state governments like Florida, Georgia, Texas and so many others who have not entered this wave of incompetence and populism and, are growing and generating jobs, the catastrophe would be national.

Let other countries see this example in the world’s largest economy so that, they do not make the political mistake in their countries, much weaker economically, to a similar catastrophe, with less chance of recovery.

Here, the entire Congress is renewed in November and the Senate can also change and control, saving or avoiding such terrible damage. We hope that, in other countries , this does not happen.

About the Author

- My name is Carlo Barbieri, an entrepreneur, civic activist and a leader of many organizations associated with Brazil. A native of Brazil myself, I am currently the CEO of Oxford Group, a firm composed of many international consulting and trading companies. I am also a founding member of the Brazilian Business Group and founding member and Past President of the Brazil Club. In addition, I serve as a Board member of the Deerfield Chamber of Commerce. I have served as a member of the Florida Chamber of Commerce and the Florida Brazil Partnership. Past President of the Rotary Club – Boca Raton West for the 2014-2015 term, I have also been Vice President and Professor of 2Grow – Human Development. An Ambassador of Barry University in Brazil, I am the former President of the Black Fire Bull Steak House. I have also presided over a number of organizations such as the Brazilian Association of Trading Companies (ABECE), Brazil-China Chamber of Commerce in São Paulo, Brazil-Australia Chamber of Commerce, Brazil-Dominican Republican Chamber of Commerce; director of the Trade Center of the State of São Paulo, Brazilian Association of Freight Forwarders and Brazilian Association of Banks. I was also a local Council member for the Consulate General of Brazil in Miami, for the 2013-2017 term.

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