“Booming” Economy Leaves Millions Behind: Part Eight

Economic and social disasters continue to increase worldwide. There is no “healthy recovery” from the pandemic.

The level of irreparable harm being caused by the inability and unwillingness of the ruling elite to solve any problems, even small problems, is glaring. With no sense of shame or irony, the chairman of the U.S. Federal Reserve, Jerome Powell, recently went so far as to publicly state that to improve the economy his goal is “to get wages down,” which means that workers, the producers of all wealth in society, will take an even bigger hit—just as inflation, inequality, debt, under-employment, poverty, anxiety, and homelessness worsen. Powell and other capital-centered ideologues do not understand that wages have nothing to do with inflation. The economic collapse has nothing to do with workers. Lowering living and working standards is the opposite of what people need.

This level of incompetence and irresponsibility on the part of the rich and their representatives at all levels of government and society may be historically unprecedented. Even worse, billions are being pressured to passively sit by and watch Rome burn as the elite enjoy more and more of the social product seized with impunity from working people. It is clear that defunct liberal institutions and governance arrangements cannot uphold human-centered arrangements and serve only to justify the concentration of even more economic and political power in even fewer hands. Existing institutions and arrangements do nothing to empower people, they just keep them marginalized and make problems worse. The absence of a politics of social responsibility is palpable and will eventually have to transmute into its opposite. More people are becoming more fed up with politicians and demanding an alternative to the untenable status quo. A pro-social direction is needed for the economy and society.

Below is part eight of the series called “Booming” Economy Leaves Millions Behind. It contains more than 35 additional facts, some updated and some new, from the U.S. and other countries. Links to each of the previous seven parts can be found at the end of this article. All eight parts collectively provide about 200 facts from different sources about the state of the global economy. They paint a vivid and disturbing picture of what is unfolding. Readers are encouraged to periodically review all the facts from all the articles in this series in order to deepen their grasp of what is actually unfolding worldwide and to appreciate just how serious the situation confronting humanity is. General knowledge and awareness are not enough. Constant review and study are effective ways to quickly recognize and reject lies, disinformation, and propaganda from the rich, their political representatives, and the corporate media. All the dots need to be connected, analysis needs to be developed, and collective action needs to be taken on the basis of constant analysis and discussion that deepens social consciousness. This is not the time to embrace the self-serving cultural, political, and economic views and schemes promoted by the rich at all levels and in all institutions.


U.S. Conditions

“US household wealth fell $500 billion to $149.3 trillion in the first quarter of 2022.”

“Jobless claims hit highest level in months, far outpacing estimates.”

More than 8 in 10 Americans hate this economy. That’s the highest number since the poll began.”

“Shocking consumer credit numbers: Everyone maxing out their credit card ahead of the recession.”

“Consumer sentiment plunges to record low in June, according to University of Michigan survey.”

“Inflation reaches 8.6% in May [2022], its highest level in more than four decades

“Inflation and rising diesel prices impacting restaurants.”

“Average US gas price hits $5 for first time.”

“Luxury-home sales in US plunge most since start of the pandemic.”

“The California exodus continues as residents head south of the border.”

“Vacant zombie properties rising in second quarter amid jump in foreclosure activity.”

“Median monthly rent surpasses $2K in the U.S. for the first time, study finds. That’s 15% higher than this time last year.”

“Educators across New York City are grappling with millions of dollars in planned cuts to school budgets, released this week for the 2022-23 school year.” The New York City public school system is the largest in America (1.1 million students).

“Raising a middle-class child will likely cost almost $286,000, according to USDA data.”

International Conditions

“The world economy is again in danger,” said David Malpass, President of the World Bank Group. “Even if a global recession is averted, the pain of stagflation could persist for several years.”

“World Bank slashes global growth forecast to 2.9%, warns of 1970s-style stagflation.”

“Get ready for reverse currency wars.”

“Europe’s economy grapples with an acute energy shock.”

“’Shrinkflation’ accelerates globally as manufacturers quietly shrink package sizes. From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It’s dubbed ‘shrinkflation’, and it’s accelerating worldwide.”

“Inflation in Germany, Spain climbs again in May [2022].”

“Mercedes recalls almost 1 million cars over faulty brakes.”

“Boeing & Airbus control 91% of global commercial aircraft fleets.”

“Belgian minimum wage does not meet new European standards.”

“2.3 million people in Portugal (roughly one in five) live in poverty.”

“Zero-growth warning for UK as petrol prices surge and OECD says Britain will be weakest economy in G7 next year.”

“As gas hits $8.60 a gallon in the UK, Brits pay $125 to fill a family car.”

“Air starts to seep out of the bubbly Canadian property market. In Toronto prices have fallen for three consecutive months. Throughout the country, home sales have plunged. Many economists warn that worse lies ahead.”

“Rising costs and staff shortages threaten construction sector in Cyprus.”

“Fuel shortages across Africa hit motorists, airlines and radio stations.”

“Both the Egyptian and Jordanian economies are struggling at the moment. Like other countries in the region, Egypt is struggling with inflation, which has prompted the Central Bank to raise interest rates. Jordan is also contending with high unemployment, which is fueling drug use in the country.”

“Ghana economy: Inflation soars from 23.6% in April [2022] to 27.6 in May [2022].”

“Chad declares food emergency while international agencies sound the alarm.”

“Sri Lanka creates two new ministers to handle worst economic crisis.”

“Malaysia’s food crisis must be addressed immediately, says King.”

“Australian Treasury chief: Labor government must slash spending and suppress wages.”

“Pricy tortillas: Latin America’s poor struggle to afford staples.”


The rich and their entourage do not understand what is happening in the economy and offer no meaningful solutions. They even plead ignorance about economic phenomena. U.S. Treasury Secretary, Janet Yellen, recently admitted publicly that she was wrong about inflation. Every “solution” the rich put forward has harmful consequences. They continue to dogmatically rely exclusively on outdated economic theories put forward by long-gone capital-centered economists like John Maynard Keynes, Milton Friedman, and others. Such ideas and theories never stabilized capitalism. They never brought lasting and sustainable peace, security, stability, and prosperity for the majority. The system continues to lurch from crisis to crisis.

The situation today is both dangerous and exciting. Everything is up for grabs, perhaps more than ever before. Contradictions are sharpening daily in all spheres on all continents There is an all-out war on all fronts—ideological, cultural, political, and economic. This is a good time to jump into the fray, expose the failures of the rich and their outmoded systems, and boldly speak up for human-centered interests. Defend workers, students, youth, the elderly, and the disabled. Reject and condemn the irrational and harmful ideas and arrangements being imposed on people by a tiny ruling elite. There is an alternative.

Part one (April 10, 2022); Part two (April 25, 2022); Part three (May 10, 2022); Part four (May 16, 2022); Part five (May 22, 2022); Part six (May 30, 2022); Part seven (June 6, 2022).

Shawgi Tell is author of the book Charter School Report Card. He can be reached at stell5@naz.edu.. Read other articles by Shawgi.