Governments Will Make You Poorer Again
The International Monetary Fund (IMF) has warned about the optimistic estimates for 2023, stating that it will likely be a much more difficult year than 2022.
Why would that be? Most strategists and commentators are cheering the recent decline in price inflation as a good signal of recovery. However, there is much more to the outlook than just a moderate decline in price inflation rates.
Price inflation is accumulative, and the estimates for 2023 and 2024 still show a very elevated level of core and headline inflation in most economies. The longer it remains this way, the worse the economic outcome. Citizens have been living on savings and borrowing to maintain current levels of real spending. But this cannot last for many years.
Politicians all over the world are trying to convince us that an annual inflation rate of 5 percent is a success, when it is a calamity.
In the current estimates, US citizens will continue to lose purchasing power. According to the Bureau of Labor Statistics, from November 2021 to November 2022, real average hourly earnings decreased 1.2 percent, sea
Article from Mises Wire
