Jim Cramer Says Diesel Price Hike Acts Like a 25% Surtax on Consumer Goods, Unvoted by Congress
On CNBC's Squawk on the Street Thursday (September 10), Jim Cramer argued that surging diesel prices function as a 25% surtax on nearly all physical goods, which consumers cannot avoid. This comes as WTI crude approaches $100 and consumer discretionary stocks, led by restaurants, have dropped 20% over the past month. Walmart previously reported over $2 billion in unexpected fuel costs, and McDonald's cited inflationary pressures for delaying its expansion target. Cramer noted that while consumer wages are currently outpacing inflation, this cushion is likely temporary, and the impact will eventually hit corporate earnings as households reduce discretionary spending.
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