U.S. inflation continues to dog both the American and, more importantly, the American consumer. The year-over-year inflation rate in April 2023 was 4.9%, per the U.S. Bureau of Labor Statistics . Many television economists and talking heads celebrated the slowing of inflations rate of growth. What these so-called experts fail to realize is that Aprils inflation rate was 4.9% higher than the rate in April 2022 , which was 8.3%. This means that the inflation rate was 13.2% when compared to April 2021 hardly a number worth celebrating.
Journalists have written extensively about the impact of inflation on Americas collective pocketbook. Higher gas prices, higher food prices, and higher prices for items such as used cars and trucks have dominated the headlines. But there are hidden costs to inflation, inflicting pain on the middle class and poorest Americans.
The U.S. real estate market is already in a recession. Through the first quarter of 2023, U.S. housing market activity as measured by private residential fixed investment has declined, on a nominal basis, for four straight quarters Fannie Maes forecast model thinks declines in the U.S. housing market will spill over and help to push the U.S. economy into a recession.
The housing market is in a vicious cycle. Interest rates are above 7% for the third time this year. This is driving a lack of inventory as people with fixed rate mortgages below 5% are loath to sell their homes and purchase a new home at a higher interest rate. The lack of inventory is driving bidding wars in some areas, making first-time homeownership more difficult. It also makes it harder to recruit people to fill roles in companies that require relocation. Simply put, not many people want to venture into the housing market at this time.
It is not just housing. The U.S. auto market is quietly suffering, but not in a manner that many think. Prices are slowly dropping , as supply chain issues are abated, with new car prices expected to fall 2.5 5% and used vehicle prices expected to decrease 10 20%.
However, the typical interest rate on a new car loan rose to 8.95% in March, up from 5.66% in March of 2022. For used cars, the rate was 11.3% in March, up from 7.7% a year ago. A one percentage point increase on an auto loan adds roughly $20 a month to a car note and thousands of dollars extra over the life of the loan.
The higher interest rates for cars are not calculated in the inflation rate, just the drop in MSRP. The hidden cost is found in higher interest rates causing more drivers to fall behind on their car payments. In January 2023, the percentage of auto borrowers who were at least 60 days late on their bills climbed 2% from December and 20.4% from the previous year, according to Fox Business. The percentage of severe delinquencies surged to the highest level since 2006. Loan defaults increased 6.2% over the course of January 2023 and were up 33.5% from a year earlier. Car repossessions were up 11% in 2022.
Another hidden cost of inflation is the grossly expanding credit card debt of American citizens. U.S. consumers now owe $986 billion on their credit cards, according to data from the Federal Reserve Bank of New York. That is a 17% increase from a year ago and a record high, as more households are forced to use their credit cards to pay monthly expenses such as food and utilities.
The final hidden cost of inflation is the increase in hardship withdrawals from retirement plans. In 2022, 401(k) hardship withdrawals rose by 24%, not only demonstrating how people are struggling to make ends meet, but also signaling a pending retirement crisis, as people will have less money on which to depend during retirement.
Joe Bidens inflation is destroying the American dream. At a time when 57% of Americans cannot afford an emergency expense of $1,000 or more from their savings, Democrats want to not only increase the debt limit, but also raise taxes so they can spend more money, which will drive more inflation. Americans are hurting, and their pain is not covered in todays financial headlines.
Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in The Washington Examiner, Newsweek, Foxnews.com, and The Daily Wire. He has served as a chief procurement officer, chief supply chain officer, and chief operations officer for multiple companies.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.
After yesterday’s royal welcome from the King, French President Emmanuel Macron will get down to business today, meeting Prime Minister Sir Keir Starmer for lunch, after PMQs.
But, as Sky News’ Sam Coates and Politico’s Anne McElvoy discuss on this episode, away from the pomp, Sir Keir’s in-tray doesn’t look any less challenging.
It includes a headache for Health Secretary Wes Streeting as resident doctors, formerly known as junior doctors, announce a new strike – and there is as a punchy warning from the OBR on making financial promises to the public.
Also today, the welfare bill returns to the House of Commons, with reports of another rebellion brewing.
While the politicians talk, so many people come from around the world to try to get across the Channel on small boats. But why?
Why make such a perilous crossing to try to get to a country that seems to be getting increasingly hostile to asylum seekers?
As the British and French leaders meet, with small boats at the forefront of their agenda, we came to northern France to get some answers.
It is not a new question, but it is peppered with fresh relevance.
Over the course of a morning spent around a migrant camp in Dunkirk, we meet migrantsfrom Gaza, Iraq, Eritrea, South Sudan, Sri Lanka and beyond.
Some are fearful, waving us away; some are happy to talk. Very few are comfortable to be filmed.
All but one man – who says he’s come to the wrong place and actually wants to claim asylum in Paris – are intent on reaching Britain.
They see the calm seas, feel the light winds – perfect conditions for small boat crossings.
John has come here from South Sudan. He tells me he’s now 18 years old. He left his war-torn home nation just before his 16th birthday. He feels that reaching Britain is his destiny.
“England is my dream country,” he says. “It has been my dream since I was at school. It’s the country that colonised us and when I get there, I will feel like I am home.
“In England, they can give me an opportunity to succeed or to do whatever I need to do in my life. I feel like I am an English child, who was born in Africa.”
Image: ‘England is my dream country,’ John tells Adam Parsons
He says he would like to make a career in England, either as a journalist or in human resources, and, like many others we meet, is at pains to insist he will work hard.
The boat crossing is waved away as little more than an inconvenience – a trifle compared with the previous hardships of his journey towards Britain.
We meet a group of men who have all travelled from Gaza, intent on starting new lives in Britain and then bringing their families over to join them.
One man, who left Gaza two years ago, tells me that his son has since been shot in the leg “but there is no hospital for him to go to”.
Next to him, a man called Abdullah says he entered Europe through Greece and stayed there for months on end, but was told the Greek authorities would never allow him to bring over his family.
Britain, he thinks, will be more accommodating. “Gaza is being destroyed – we need help,” he says.
Image: Abdullah says ‘Gaza is being destroyed – we need help’
A man from Eritreatells us he is escaping a failing country and has friends in Britain – he plans to become a bicycle courier in either London or Manchester.
He can’t stay in France, he says, because he doesn’t speak French. The English language is presented as a huge draw for many of the people we talk to, just as it had been during similar conversations over the course of many years.
I ask many of these people why they don’t want to stay in France, or another safe European country.
Some repeat that they cannot speak the language and feel ostracised. Another says that he tried, and failed, to get a residency permit in both France and Belgium.
But this is also, clearly, a flawed survey. Last year, five times as many people sought asylum in France as in Britain.
And French critics have long insisted that Britain, a country without a European-style ID card system, makes itself attractive to migrants who can “disappear”.
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Migrant Channel crossings hit new record
A young man from Iraq, with absolutely perfect English, comes for a chat. He oozes confidence and a certain amount of mischief.
It has taken him only seven days to get from Iraq to Dunkirk; when I ask how he has made the trip so quickly, he shrugs. “Money talks”.
He looks around him. “Let me tell you – all of these people you see around you will be getting to Britain and the first job they get will be in the black market, so they won’t be paying any tax.
“Back in the day in Britain, they used to welcome immigrants very well, but these days I don’t think they want to, because there’s too many of them coming by boat. Every day it’s about seven or 800 people. That’s too many people.”
“But,” I ask, “if those people are a problem – then what makes you different? Aren’t you a problem too?”
He shakes his head emphatically. “I know that I’m a very good guy. And I won’t be a problem. I’ll only stay in Britain for a few years and then I’ll leave again.”
A man from Sri Lanka says he “will feel safe” when he gets to Britain; a tall, smiling man from Ethiopia echoes the sentiment: “We are not safe in our home country so we have come all this way,” he says. “We want to work, to be part of Britain.”
Emmanuel is another from South Sudan – thoughtful and eloquent. He left his country five years ago – “at the start of COVID” – and has not seen his children in all that time. His aim is to start a new life in Britain, and then to bring his family to join him.
He is a trained electrical engineer, but says he could also work as a lorry driver. He is adamant that Britain has a responsibility to the people of its former colony.
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Axiom 4 mission’s crewmates began conducting biomedical research aboard the International Space Station on Tuesday. Expedition 73 and Ax-4 crews found electrical muscle stimulation and cellular immunity. The Cargo transfers and exercise gear maintenance take a day for orbital residents.
Takuya Onishi, Situation Commander from JAXA( Japan Aerospace Exploration Agency), has begun the shift in continuation of his space biology studies. His blood and saliva samples are being collected for storage and processing. Further, he spun the specimens in a centrifuge and placed the blood samples in the freezer. After that, he stowed the samples in the incubator.
JAXA’s Takuya Onishi Leads Cellular Immunity Study with Blood and Saliva Analysis
According to a report from NASA, the samples will be analysed to determine the effect of microgravity on cellular immunity, observe stress-related immune reactions, and learn about how to treat symptoms of immunity. The flight engineers Johnny Kim, Anne McClain, and Nichole Ayers spent their day on orbital lab maintenance and further support activities of the crew. Kim focused mainly on orbital plumbing as he replaced and drained the Tranquillity module.
Ayers checked cables and power components in the Destiny laboratory module and deactivated and placed the microscope. McClain took the cognition test on the laptop and kept on supporting the Ax-4 crew at a time of a busy schedule.
Ax-4 Crew Explores Muscle Stimulation and Space Suit Fabric Efficiency in Microgravity
Veteran astronaut Peggy Whitson and her Ax-4 crewmates Shubhanshu Shukla, Tibor Kapu and UznaÅ„ski-WiÅ›niewski conducted numerous space investigations throughout the lab. The private scientists in their second full week on the station found out that the electrical muscle simulation escalates the space-related and muscle atrophy in space. Ax-4’s other experiments looked at suit fabrics promote thermal comfort with exercising the weightlessness, crew health and agriculture in space.
Sergey Ryzhikov and Alexey Zubritskiy worked together on the Zvezda service module, repairing and organising components on a treadmill, one of the two inside the space station, which included the COLBERT treadmill. Kirill Peskov started his day by going through the biological samples from the crewmates. At the end of his shift, he transfers water from Progress 92 cargo craft and unloads the stuffs of hardware and crew supplies.