The negative voices of doom and gloom during the current period of inflation 2021-2024 failed to realize their dream for an economic recession. Unemployment levels have stayed at low historical levels, job creation is at a three and half year record, smaller deficits than the previous 4 years, consumer spending has stayed steady and healthy to keep the economy rolling. 6 million more Americans are working now than there was prior to COVID and our homeland has been safe.
The inflationary period of 1979-1982 experienced higher inflation rates and higher 30 year home mortgage interest rates far greater than the current situation. Inflation for 1979 was 13.3%, 1980 was 12.5%, 1981 was 8.9% and 1982 was 3.8%. So, the average annual inflation rate for that period was 9.6%. The 30 year home mortgage rate for 1979 was 12.9%, 1980 was 14.9%, 1981 was 18.6% and 1982 was 16.8% for an average annual rate of 15,6%. The unemployment rate stood at over 10% for 10 straight months from September 1982 till June 1983. That is still the longest consecutive string of unemployment and the highest in the last 80 years. Deficit spending was increasing, fewer jobs were being created and consumer spending was not moving the economy forward. Terrorist blew up the Marine compound in Beirut killing 241 Marines and wounded many others.
The current inflationary period 2021-2024 tells the story how the present U.S. economy did a better job of controlling inflation rates and the 30 year home mortgage interest rates as follows. Inflation in 2021 was 7%, 2022 was 6.5%, 2023 was 3.4% and so far 2024 it is 2.9% for an annual average rate of 4.95%. 30 year home mortgage rates for 2021 was 2.9%, 2022 was 5.3%, 2023 was 6.8%, 2024 so far the highest was 7.7% for an annual average of 5.6%. (The latest Fannie Mae 30 year mortgage rate was at 6.7% this week) But if one paid attention to the negative voices of doom and gloom, you would think the sky has already caved in. That is how bad the division has taken place and to top it off, Trump and his supporters are running a campaign based on doom and gloom.
The democratic party has earned the right to run and campaign with a positive message of hope and a economic foundation to improve on in the next administration. In the meantime, the media will continue to enable the negative voices. The American people can change that in November by supporting the democratic nominee and electing a majority democratic House and Senate. After all, the democratic party has a much better record of governing and a much better record on every economic issue and has the numbers to back it up. And President Biden has kept America safe.
So stay tuned to PolitiDose, your daily dose of political commentary.
This commentary written by Joe Lorio
Note: The average annual 30 year home mortgage rate for the period 1971-2022 was 7.7%.
