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Yes, It’s Biden’s Inflation

Posted on Wednesday, April 13, 2022
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by Outside Contributor
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inflation

This week, America received news of yet another shocking inflation report: over the past 12 months, inflation has skyrocketed 8.5%, outpacing wage gains by 2.9%. That inflation has flooded every area of American life, from gas (up 48%) to airfare (24%) to furniture (16%) to milk (13%). Inflation is costing the average American family hundreds of dollars per month — and, as we know, inflation is a highly regressive tax, harming those at the bottom of the income spectrum the most.

For its part, the Biden administration blames Russian President Vladimir Putin’s invasion of Ukraine. White House press secretary and incipient MSNBC employee Jen Psaki announced, “we expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike,” and blamed gas prices alone for the spike. That, of course, is ludicrous. In February 2021, the month after Biden took office, the inflation rate was just 1.7%. In April 2021 it spiked to 4.2%. By May 2021, the inflation rate was 5%; it remained in that range until October 2021, when it spiked to 6.2%; it then spiked again to 6.8% in November 2021 and 7.5% in January 2022.

In other words, the problem ain’t Putin.

It also isn’t supply chain issues alone. The core inflation rate in Europe has remained well below that of the United States; the harmonized index of consumer prices (HICP) was 5.9% in February 2022 in the Europe area, compared with 7.9% in the United States.

So, what (SET ITAL) is (END ITAL) the problem? The problem lies in loose monetary policy from the Federal Reserve for years on end, combined with wildly irresponsible economic policy from the Biden administration. Begin with the Federal Reserve. Between 2008 and 2015, the Federal Funds Effective Rate was essentially zero. It rose to 2.39% in May 2019, then dove back down to zero amidst the COVID-19 recession. This means that the Federal Reserve essentially subsidized borrowing and spending for years on end.

But the problem didn’t stop there. During the COVID-19 downturn, the Federal Reserve purchased some $4 trillion in assets, injecting liquidity into the economy in the mistaken belief that the problem was lack of demand, not lack of supply. This superheated the economy; as supply chains attenuated, prices rose dramatically.

All of this was accompanied by ridiculously spendthrift policy from the Biden administration. The Trump administration, along with a bipartisan contingent in Congress, spent nearly endless amounts of money as the American economy was subjected to an artificial coma. But the Biden administration entered office with a working vaccine and COVID-19 on the wane — and then proceeded to inject trillions more in spending into the economy. In 2020, the government spent approximately $6.6 trillion in federal outlays; in 2021, the year of recovery, the government spent $7.2 trillion.

That spending was wildly unjustifiable. With vaccines available and people going back to work, the Biden administration had a responsibility to leave the economy alone. Instead, Biden insisted on reshaping the economy according to his whim. As Ezra Klein lamented to former Treasury Secretary Larry Summers, “there was a reason the Biden administration wanted to run the economy hot… it felt, finally, like we were reaching people on the margins. We were putting a lot of firepower to do that… And then for that to turn into this horrifying inflation problem, which is now eating back those wage increases… I recognize the world doesn’t have to please me, but it is maddening.”

Yes, reality is maddening. But not quite as maddening as the predictable results of ignoring financial reality, then lying about it in order to blame someone else.

Ben Shapiro, 38, is a graduate of UCLA and Harvard Law School, host of “The Ben Shapiro Show,” and editor-in-chief of DailyWire.com. He is the author of the New York Times bestsellers “How To Destroy America In Three Easy Steps,” “The Right Side Of History,” and “Bullies.”

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Derek
Derek
2 years ago

… the Clintons, the Obamas and the Bidens share a peculiar commonality, that they’re never on the level about anything, that everything’s always Russia’s fault, that nothing could ever be China’s fault, that nothing could ever be their fault –

PaulE
PaulE
2 years ago

Anyone, with any degree of real economic understanding, realized on Day One of the Biden administration, that the proposed agenda of the Democrats would be highly inflationary. Anyone with an historical understanding of the Democrats knew that they would always try to shift the blame for the actions onto anyone else they could to avoid taking responsibility for their actions. Virtually nothing in this article is either new or inciteful. This is just who the Democrats are and how they always act, when they mess something up. That any Americans are dumb enough to believe them, after decades and decades of running the same game over and over again, just highlights how gullible a significant segment of the American population is. As the old Forest Gump saying goes “You can’t fix stupid.” and we have a LOT of stupid people out there that buy everything the Democrats are selling.

Art
Art
2 years ago

Accountability issues, Biden’s a blame-shifter. His principle character flaw, mendacity. Lies through his teeth, never on the level, about anything. Plays America for chumps, thinks we’re stupid.

James Thompson
James Thompson
2 years ago

Yes he did this to us .I just wrote him and told him so. Won’t do any good but we get to let him know.
I also asked him to remove himself and his entire Administration to help us save America. Like I said,it won’t help and nothing will happen but I’m not going to stop sending polite hate mail. The brown shirts will come to my house first unless everyone starts e-mailing him with polite hate mail too.Let’s flood the White House with hate mail. They won’t think we’re mad till we tell them know. Then everyone will meet a brown shirt.
Sign me “Fu#&an Pi**ed off

Dan
Dan
2 years ago

The sad reality for dementia joe is that when he surrendered to the far left kooks, bernie the commie and ocrazio, he doomed himself to a failed presiduncy

Had he played it smart and kept the Trump policies in placer he would be hailed for running a brilliant oval office

Nobody’s Business
Nobody’s Business
2 years ago

The problem is partially with Putin but caused by Biden. Putin has got the goods on Biden and Biden has to pretend he’s against Putin but actually not doing anything that accomplishes squat.

Bill T
Bill T
2 years ago

This is Obama’s third presidential term, Biden is a puppet being controlled by the far left progressive democrats, it’s now a Marxist administration that’s in full control of completely destroying our country. This is working out better than they in there wildest dreams could have ever imagined. It’s the old white democrat doing all of this not a socialist or communist regime. In actuality if these progressive haters of everyone and everything aren’t turned back within the next few months the collateral damage will be irreversible. November can’t get here soon enough, and yes guaranteed they will stack the entire deck once again, only this time we’ll be ready for there corrupt and rigged election tactics.

johnh
johnh
2 years ago

During debates, Joe Biden was upfront more than once that he would get rid of fossil fuels. First day in office he signed EO to stop Keystone XL pipeline. So how can Biden or Psaki speak to public & say that they did not damage US oil industry & add fuel to inflation at gas pumps. Just tell the truth, or do not tell Americans otherwise.

Derek
Derek
2 years ago

… the Clintons, the Obamas and the Bidens share a peculiar commonality, that they’re never on the level about anything, that everything’s always Russia’s fault, that nothing could ever be China’s fault, that nothing could ever be their fault –

PaulE
PaulE
2 years ago

Anyone, with any degree of real economic understanding, realized on Day One of the Biden administration, that the proposed agenda of the Democrats would be highly inflationary. Anyone with an historical understanding of the Democrats knew that they would always try to shift the blame for the actions onto anyone else they could to avoid taking responsibility for their actions. Virtually nothing in this article is either new or inciteful. This is just who the Democrats are and how they always act, when they mess something up. That any Americans are dumb enough to believe them, after decades and decades of running the same game over and over again, just highlights how gullible a significant segment of the American population is. As the old Forest Gump saying goes “You can’t fix stupid.” and we have a LOT of stupid people out there that buy everything the Democrats are selling.

Art
Art
2 years ago

Accountability issues, Biden’s a blame-shifter. His principle character flaw, mendacity. Lies through his teeth, never on the level, about anything. Plays America for chumps, thinks we’re stupid.

James Thompson
James Thompson
2 years ago

Yes he did this to us .I just wrote him and told him so. Won’t do any good but we get to let him know.
I also asked him to remove himself and his entire Administration to help us save America. Like I said,it won’t help and nothing will happen but I’m not going to stop sending polite hate mail. The brown shirts will come to my house first unless everyone starts e-mailing him with polite hate mail too.Let’s flood the White House with hate mail. They won’t think we’re mad till we tell them know. Then everyone will meet a brown shirt.
Sign me “Fu#&an Pi**ed off

Dan
Dan
2 years ago

The sad reality for dementia joe is that when he surrendered to the far left kooks, bernie the commie and ocrazio, he doomed himself to a failed presiduncy

Had he played it smart and kept the Trump policies in placer he would be hailed for running a brilliant oval office

Nobody’s Business
Nobody’s Business
2 years ago

The problem is partially with Putin but caused by Biden. Putin has got the goods on Biden and Biden has to pretend he’s against Putin but actually not doing anything that accomplishes squat.

Bill T
Bill T
2 years ago

This is Obama’s third presidential term, Biden is a puppet being controlled by the far left progressive democrats, it’s now a Marxist administration that’s in full control of completely destroying our country. This is working out better than they in there wildest dreams could have ever imagined. It’s the old white democrat doing all of this not a socialist or communist regime. In actuality if these progressive haters of everyone and everything aren’t turned back within the next few months the collateral damage will be irreversible. November can’t get here soon enough, and yes guaranteed they will stack the entire deck once again, only this time we’ll be ready for there corrupt and rigged election tactics.

johnh
johnh
2 years ago

During debates, Joe Biden was upfront more than once that he would get rid of fossil fuels. First day in office he signed EO to stop Keystone XL pipeline. So how can Biden or Psaki speak to public & say that they did not damage US oil industry & add fuel to inflation at gas pumps. Just tell the truth, or do not tell Americans otherwise.

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