Should Black America Be Concerned About HyperInflation Taking Over In The US? Photo: iStock
If you’ve been grocery shopping or pumped gas, you already know inflation is here, but should Black America be worried about hyperinflation?
Hyperinflation is a series of rapid, excessive, and out-of-control price increases that happens rarely in developed countries when the price of goods and services rises at an annual rate of 1,000 percent or more. Hyperinflation can be caused by an oversupply of paper currency without a corresponding rise in the production of goods and services, according to Investopedia.
It’s unlikely to happen in stable economies like the U.S., partly because of cost-control factors made possible by a world economy, according to Professor L. Burke Files of Brazil-based Hayek Global College. “The interconnected nature of the world is the ‘pressure relief valve’ for most nations,” Files said. “Those nations that print an absurd amount of money, like Zimbabwe—or try to manipulate their currency and restrict trade, like Argentina—become the outliers.”
While it might not be likely that hyperinflation will affect the U.S. economy, there are no guarantees.
“It’s may not be as simple as the authorities are stupid about INFLATION. Who wants to be behind the wheel, popping the biggest asset bubble in modern history. Would you want be marked as being behind the wheel when this PONZI ASSET BUBBLE POPS? They have poor choices at the TOP,” The Moguldom Nation CEO Jamarlin Martin tweeted.
Inflation tends to hurt Black America disproportionately, so it would stand to reason that hyperinflation would do the same.
One in three Americans is spending more on groceries, according to a recent Bloomberg News/Morning Consult survey. A majority of U.S. adults said they are paying more for meat, chicken, fruit, toilet paper, and milk. The annual inflation rate in the U.S. surged to 6.2 percent in October of 2021, the highest since November of 1990 and above forecasts of 5.8 percent, according to U.S. Bureau of Labor Statistics.
Before the pandemic, studies showed that Black Americans were financially vulnerable and still recovering from the 2008 financial crisis. Add to this the current surge in prices and Black America is struggling more. More than 40 percent of Black respondents in the Bloomberg survey said higher costs at grocery stores in 2021 had a major negative impact on the household budget.
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“Rising inflation is when the purchasing value of your dollar declines. Or in other words, goods such as groceries increase and services [go] up,” financial advisor Jordan Awoye told Black Information Network. “So, for example, goods such as groceries increase, and as a result, you’re able to buy less groceries/food for your family with the same amount of money.”
Inflation has given Americans a bad impression of the economy — 65 percent of respondents said the economy is in bad shape, with just 35 percent saying the national economy is good, according to a poll by The Associated Press-NORC Center for Public Affairs Research.
