CNBC’s Ron Insana dispels the misinformation about the economy under President Biden

Ron Insana provides an objective explanation about President Biden’s economy. It turns out it is in great shape.

Ron Insana gives an objective view of the economy

Ron Insana, in very simple terms, points out that the economy is in good shape.

“If you go back to Christmas where everybody thought no goods would be delivered and we just get lumps of coal,” Ron Insani said. “Instead we had the strongest holiday shopping season in 17 years. So we’re seeing more and more those issues get resolved and I think as we move through 2022 relative to the cost of goods last year, which was depressed by the pandemic, we’ll see more flattening out of those increases. And in my estimation, and I’m not among many who say this, I do think inflation is going to come down pretty hard this year particularly in the goods sector where again we’ve seen those big jumps relative to the last couple of years that were affected by the pandemic. And i think we’ll see much more normal price activity going forward.”

Insan would go on to say that the real inflation given wage increases is about 1%.

“Wages have gone up about six percent so the real loss of purchasing power is close to one percent rather than the seven percent inflation number that everybody talks about,” Insani said. “So wages have gone up. The economy’s strong. Employment is strong and I think this temporary increase in inflation will, as the fed used to say, prove transitory. And I think people will find that their purchasing power will get stronger as the year goes on.”

It is important that we understand what is occurring in the economy today.