Biden's plan to make inflation worse
Biden uses inflation to double down on his Build Back Better plan
Biden solutions to fix inflation ‘lousy ideas’: Former Trump economist
Former Trump administration economist Stephen Moore argues against President Biden’s three solutions for inflation.
President Joe Biden has had the inflation story entirely wrong from the beginning. So it’s no surprise that his latest plan to combat gas prices that hit six dollars per gallon in some markets, unprecedented supply chain disruptions, and an overall inflation rate near eight percent won’t work.
This Biden inflation odyssey (prices were rising less than two percent when Trump left office) has now lasted fifteen months. First we were told there was no inflation, then it was transitory, then it would only hurt the rich.
On Tuesday in the Wall Street Journal Biden finally admitted that "Americans are feeling anxious" about rising prices – the understatement of the year – and then blames the "turmoil," on global factors all beyond his control. He points the finger at Putin’s invasion of Ukraine, the Federal Reserve Board, and greedy meat producers, drug companies, and energy CEOs.
He even claimed that the economy was slowing down when he entered office when in fact the new vaccine was just hitting the market and a grand reopening of the economy was just beginning.
BIDEN'S INFLATION PLAN CALLS ON THE FED, CONGRESS TO ACT, SHOWING LIMITS OF EXECUTIVE RESPONSE
Inflation record-highs to extend ‘another 18 months’: Former Trump economist
Former Trump administration economist Stephen Moore predicts ‘another 18 months or so’ of very high prices.
The president noted that Americans have better pay, but fails to mention that real wages have declined more than four percent on his watch. Savings have plummeted 79 percent and consumer debt is exploding as people turn to credit cards to make it from paycheck to paycheck.
People are demonstrably poorly now compared to January 2021 as their paychecks can’t keep pace with rising prices. For essentials like food, energy, transportation and housing the real inflation rate is well over 20 percent in the CPI numbers.
What is most demoralizing is the Biden inflation prescription laid out in the WSJ.
Biden’s call for price controls is equally misguided because every time we have tried this – most recently under Jimmy Carter – prices stayed high, but shortages exacerbated the price spikes. Biden writes that "I know that feeling" of higher energy prices, but doesn’t he remember that price controls gave the nation gas lines and rationing?
He also calls for higher taxes on the rich, on energy companies, and other businesses. How does this lower prices? If you tax the production of business goods and services you will get less of them – which means higher prices.
Biden meets with Fed Chair Jerome Powell to discuss the state of the American, global economy and inflation
Biden meets with Fed Chair Jerome Powell to discuss the state of the American, global economy and inflation
Finally, Biden wants more spending on green energy, more on infrastructure spending (we just passed a $1.1 trillion bill for public works), and on one million housing units. Now the government is going to be the nation’s largest landlord?
In other words, Biden is merely making yet another pitch for his multi-trillion dollar Build Back Better plan. It’s called doubling down on his failed progressive policies that lit the forest fire of inflation in the first place.
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The last line in his WSJ piece is an almost insulting claim that he wants an "open and honest debate" with Republicans and independents to solve the economic crisis. Where? When?
There is no pivot to the sensible middle. There isn’t an apology or any acknowledgement that his policies are risking a crash of the economy. November can’t get here soon enough.
Stephen Moore and E.J. Antoni are economists at the Heritage Foundation. Moore served as an economic advisor to Donald Trump.