Creighton Professor: 'Worker Being Punished' by High Inflation Rate

Inflation in the U.S. has risen 6.8 percent over the last 12 months, the highest rate since 1982. That’s according to a recent analysis by the U.S. Labor Department.

Ernie Goss, a professor of economics at Creighton University, said stimulus payouts from the Trump and Biden Administrations, along with low interest rates have increased demand in a stymied supply market. Goss said this makes for an unusual combination that upticks prices.

“For the average worker across the U.S., what we call inflation-adjusted or real wages have come down,” Goss said. “The worker is now being punished by this upward trend in inflation.”

He said that while wages have increased at an appropriate rate for industries like leisure and hospitality, most workers are being negatively affected.

In the short-term, Goss expects the FED to increase interest rates, which will encourage people to save instead of spend. On a positive note, Goss sees prices getting more reasonable toward the beginning of 2022.