Inflation is the price we all pay for Biden’s massive spending

Talk about chutzpah. Interest rates are rising and a recession is looming.

And amidst this chaos, Joe Biden claims there is “no evidence” that America’s bailout plan (a COVID-19 relief law) caused the inflation. (cough) bullshit (cough).

“One could argue whether it had a small impact on inflation on the fringe,” Biden said Associated Press in this week. “I do not think so. And most economists don’t. But the notion that it caused inflation is bizarre.”

what is actually Biden’s revisionist history is bizarre. As Vox put it last month, “Biden’s American bailout has made inflation worse. The question is how much.” But don’t take the word of this leftist site. Back in November, Biden even seemed to admit that.

“The irony is, people have more money now because I passed the first big law. They all got checks for $1,400. They got checks for a whole bunch of things,” he said. “But what if there’s nothing to buy and you have more money? … It creates a real problem.”

In fact, it has created a real problem. And moments later, Biden got around to explaining it. “[W]What happens when more people with money buy products and buy fewer products?” To his own question, the President replied, “Prices are going up.”

I’ll be the first to admit that Biden’s often incoherent and always discursive style of rhetoric makes him difficult to pin down. But what Biden finally came to explain sounds like a textbook recipe for how inflation happens: “Too much money is chasing too few goods.”

Of course, no one denies that supply chain bottlenecks — as Biden points out — have played a major role in reducing supply. But Biden has suddenly decided to update us on how his stimulus spending has helped boost demand.

Now you could argue that not much can be done at this time to fix this problem. So why waste so much time trying to set things right?

Consider what the $1.9 trillion injection (actually closer to $3 trillion if you count the $900 billion bipartisan deal passed in late December 2020) has impacted prices, then consider that the progressives wanted to spend an extra amount 6 trillion dollars in the Build Back Better expense account.

“It’s become a cliché, but clichés are often based on fact — Biden’s presidency now resembles Jimmy Carter’s. And he has no one to blame but himself.”

Imagine how much worse inflation would have been if Biden and the Democrats had prevailed. And imagine what will happen if they can still persuade moderate Democratic Senator Joe Manchin to help work through a stripped down version of Build Back Better. (As an aside, I’m aware that progressives argue that the existence of BBB will not push inflation higher for a variety of reasons, including the fact that it would stretch out over 10 years. But given that, I have a hard time supporting their assurances take seriously their failure to anticipate inflation.)

Ideas have consequences, and those who don’t learn from history are doomed to repeat them. All this is to say that it is important to hold politicians accountable for their policies – if for no other reason than to prevent future (and current) politicians from repeating the same mistakes.

Of course, some progressives (like Rep. Alexandria Ocasio-Cortez) could be forgiven for not remembering the last time inflation reared its ugly head. In the 1970s, politicians from both major parties supported policies that led to inflation.

The painful experience of inflation has so chastised American political leaders that it was almost four decades before their successors in elected office rebuffed inflation warnings. It’s ironic that the second time around, the man at the head of government would be someone who made his legislative bones in the 1970s.

It’s become a cliché, but clichés are often based on fact — Biden’s presidency now resembles Jimmy Carter’s. And he has no one to blame but himself.

Aside from serving in the Senate in the 1970s, this time around Biden had plenty of people warning him that the economy was overheating. As reported by CNN’s John Harwood, after former Clinton administration Treasury Secretary Larry Summers began sounding the alarm about inflation in February 2021, “Biden’s advisers responded that while monitoring inflationary risks, there was a risk underspending to recover from the effects of inflation The pandemic outweighed the risks of overspending.”

When we started seeing signs of inflation, Biden incorrectly insisted it was merely “temporary” or “temporary.” Biden’s latest talking point is, “If it’s my fault, why is inflation higher in every other major developed country in the world?”

There is also a grain of truth in that. As Vox notes, “Around the world, inflation is being driven by pandemic-related disruptions and exacerbated this year by Russia’s invasion of Ukraine and China’s COVID-19 lockdowns.” but “In terms of the exact level of inflation, the US stands out. And it started to be noticed shortly after President Biden took office.”

Even with his reputation as a clear-speaking, working-class Joe with no bullshit, it’s hard to read Biden’s comments and not come to the conclusion that he’s not shooting straight at us. First, he was wrong in dismissing valid concerns about inflation – a pattern repeated in other areas, including violent crime (“more pronounced” in the summer) and the (“cyclical”) wave of migrants – and now he denies any guilt.

It is impossible to solve a problem when your first impulse is to deny its existence and then you lie about how your past behavior contributed to the problem.

The first step is to admit you have a problem. Because of this, it’s hard to imagine Joe Biden ever being able to reverse this mess.

https://www.thedailybeast.com/inflation-is-the-price-we-all-pay-for-bidens-massive-spending?source=articles&via=rss Inflation is the price we all pay for Biden’s massive spending

Hung

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