As supply chain problems continue to fuel high inflation, the president of the BlackRock investment firm has predicted that an “entitled generation” of Americans will experience the shock of commodities shortages for the first time in their lives. 

According to Bloomberg, BlackRock co-founder Rob Kapito remarked at an energy conference in Austin, Texas on Tuesday, “For the first time, this generation will go into a store and not be able to acquire what they want.” 

Go Ad-Free, Get Exclusive Shows and Content, Go Premium Today - $1 Trial

“And we have a very entitled generation that has never had to sacrifice,” added the 65-year-old Kapito, who has an estimated net worth of more than $400 million and made $24.6 million in total compensation in 2020.

“I would put on your seat belts because this is something that we haven’t seen,” says Kapito, who blamed a shortage of workers, energy and agricultural supplies for soaring “scarcity inflation”.

Kapito did not specify which generation of Americans he believed to be “entitled” in his views, and a BlackRock spokesman did not immediately react to a DailyMail.com enquiry on Wednesday.

Meanwhile, Bloomberg economists advise that the average American should set aside an extra $5,200 this year for increased prices, or $433 per month.

Go Ad-Free, Get Exclusive Shows and Content, Go Premium Today - $1 Trial

Households should expect to pay thousands more in 2022 for the same basket of products and services they consumed last year, according to economists Andrew Husby and Anna Wong.

“The excess savings built up over the pandemic, and increases in wages, will cushion those costs, and allow spending to expand at a decent pace this year,” they authored.

Is Joe Biden An Embarrassment To Our Country?

By completing the poll, you agree to receive emails from DrewBerquist.com, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

“But accelerated depletion of savings will increase the urgency for those staying on the sidelines to join the labor force, and the resulting increase in labor supply will likely dampen wage growth.”

Higher food and energy expenses are expected to account for around $2,200 of the extra $5,200 that households may expect to pay this year, according to experts.

Gas prices have stabilized across the country, but they are still near all-time highs established earlier this month.

The nationwide average price of gasoline was $4.24 per gallon on Wednesday, down from a high of $4.33 on March 11.

The consumer price index increased 7.9% year over year in February, the largest increase in 40 years, according to data released earlier this month.

Inflation is expected to rise even more in March when the impact of rising fuel prices is factored in. According to the most recent data, the cost of basic essentials is rising rapidly, with groceries up 8.6% year over year, shelter up 4.7 percent, clothing up 6.6 percent, and energy up 25.6 percent.

The majority of the inflationary effects of Russia’s invasion of Ukraine were not represented in the February consumer price index, which did not account for the consequences from rising oil and commodity prices in early March.

Despite this, President Joe Biden blamed Russian President Vladimir Putin for the recent inflation figures.

“An increase in gas and energy costs this month contributed significantly to inflation as markets reacted to Putin’s aggressive moves,” added Biden.

“As I have said from the start, there will be costs at home as we impose crippling sanctions in response to Putin’s unprovoked war, but Americans can know this: the costs we are imposing on Putin and his cronies are far more devastating than the costs we are facing,” he incorporated.

Inflation is outpacing most Americans’ income gains in the last year, making it more difficult for them to finance necessities like food, petrol, and rent.

As a result, as the important midterm elections approach, inflation has emerged as a significant political concern for Biden and congressional Democrats.

In surveys, small business owners increasingly say it’s their top economic issue as well.

MORE NEWS: No Show Today

After the government revealed Wednesday that GDP rose at a robust corrected annual rate of 6.9% in the fourth quarter of last year, growth is expected to slow dramatically this year, particularly in the first three months of 2022.

As Americans become more pessimistic about the economy, higher inflation will undoubtedly weigh on consumer purchasing.

Home sales have dropped as the Federal Reserve has begun to raise borrowing costs, causing mortgage rates to skyrocket.

Exports may suffer as a result of Russia’s invasion of Ukraine, which has disrupted global economy.

The largest drag in the first quarter of this year will be a steep decrease in the amount of goods businesses refill on their shelves and warehouses. Economists predict that growth in the first three months of the year might be as low as 0.5 percent, and that it could even dip into negative territory, signaling a recession.

 

This piece was written by DrewBerquist.com on March 31, 2022. It originally appeared in Objectivist.co and is used by permission.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of DrewBerquist.com. Contact us for guidelines on submitting your own commentary.