by Casey Harper
Twitter CEO Jack Dorsey stirred up more fears around inflation with his comments over the weekend saying that hyperinflation is “happening.”
“Hyperinflation is going to change everything,” the tech leader posted on Twitter. “It’s happening.”
The post sparked a flurry of responses. Replying to comments on his post, Dorsey added, “It will happen in the US soon, and so the world.”
Hyperinflation is defined by Investopedia as “rapid, excessive, and out-of-control general price increases in an economy.”
Dorsey’s comments come after several months of rising inflation. The Bureau of Economic Analysis published data earlier this month showing the rise of personal consumption expenditures (PCE), a key marker of inflation. Those numbers showed the fastest rise in inflation in 30 years.
“The PCE price index for August increased 4.3 percent from one year ago, reflecting increases in both goods and services,” BEA said. “Energy prices increased 24.9 percent and food prices increased 2.8 percent. Excluding food and energy, the PCE price index for August increased 3.6 percent from one year ago.”
Dorsey’s comments defy the Biden administrations’ assurances that inflation is only “transitory” and is not cause for major concern. A recent survey of economic experts conducted by the Wall Street Journal found many seeing inflation continuing well into 2022, if not longer.
Biden responded to those concerns at his CNN Town Hall last week.
“I don’t think so,” he said. “I don’t think it will last if – depending what we do. If we stay exactly where we are, yes. If we don’t make these investments, yes.”
A different federal inflation marker, the consumer price index, has shown a similar trend.
“The all items index rose 5.4 percent for the 12 months ending September, compared to a 5.3-percent rise for the period ending August,” the Bureau of Labor Statistics reported. “The index for all items less food and energy rose 4.0 percent over the last 12 months, the same increase as the period ending August. The energy index rose 24.8 percent over the last 12 months, and the food index increased 4.6 percent over that period.
Elevated inflation has political implications as well, putting extra pressure on Democrats as they negotiate several trillion dollars in federal spending. Opponents to the bills have cited inflation as a leading concern.
A recent poll found the majority of voters blame Democratic policies for inflation. Federal debt spending contributes to higher prices because the federal government prints money to help offset costs.
A Morning Consult/POLITICO poll released last week reports that 62% of Americans blame Democratic policies, including 41% of Democratic voters.
“Sixty-two percent of voters blame the Biden administration’s policies for rising inflation, an increase of 3 percentage points from late July, when Morning Consult and Politico last polled on the question,” the survey said. “Slight increases in the shares of Republicans (85 percent) and independents (61 percent) who hold the administration responsible fueled the uptick. About half of voters (48 percent) believe Americans’ return to pre-pandemic behaviors has contributed to the 13-year high in inflation, a 5-point decline from July.”
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Casey Harper is a Senior Reporter for the Washington, D.C. Bureau. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, and USA Today. Harper contributes to The Center Square.
Photo “Jack Dorsey” by jack.
