Inflation Still at Record Heights But Slight Decrease to 8.5%

 

Inflation in July had been forecast at an 8.7% increase a slight decline from June
And in a pleasant surprise the actual numbers were 8.5%, still to popping the corks too soon
Look for the Fed to again raise interest rates in an effort to inflation slow
But with the House expected to pass the misnamed Inflation Reduction Act how high will inflation go?
With manufacturers struggling to produce goods to meet demand
Still great backlogs of chips across the land
Taiwan a leader in producing semiconductor chips needed in many products from phones to cars
Is facing a belligerent China rattling plane, missile and warship sabers a weak Biden seems hopeless to bar
We are still in a recession that we cannot spend or tax our way out of it
A truism that almost all economists save the most leftist will admit
Biden promised only those over $400,000 in income will see their taxes increase
But inflation on lower incomes is the cruelest tax that savings and retirement cushions decrease
And the corporations that will now pay a minimum of 15% where because of credits will have to cut spending
Reducing the goods and services that produced the credits and a hit to those vending
Attempting to reduce payroll with layoffs or automation and/or reducing dividends that on which retirees rely
The excise tax on stock buy backs of 1 % may reduce the practice used to increase the P/E ratio that raises the price of a stock
Making it easier to raise capital when needed and fund employee stock purchase plans
Enable employees to have an ownership stake in the companies they work for across the land
The proof is in the pudding but on inflation reduction the Inflation Reduction Act will leave a bitter taste
And the audits by the 87,000 new IRS agents will migraines and high blood pressure put in place

© 8/10/2022 The Alaskanpoet