Government Watch / Politics

Blaming Americans for Inflation? Bunk!

Inflation

Janet Yellen, Secretary of Treasury, is now blaming average Americans for inflation, which she memorably dismissed as “transitory,” but which is now plaguing every American. What did she say? That Americans are “splurging,” especially on “technology” which explains 2022 inflation. Forgive me, Madam Secretary, but this is just “bunk.” Give me a break.

First, while Americans cut spending during the 2020 and 2021 – a product of nationwide lockdowns, which drove dozens of big-name companies and thousands of smaller ones into bankruptcy – a tentative return to employment and spending is not a “splurge.” Companies lost hundreds of billions in COVID.  Gradual recovery from that collapse is not a “splurge.”   

Second, many of the bankruptcies trigging a slide into recession and rising unemployment were in the traditional energy sector – driven by Biden, not COVID. Since 2020, hundreds of energy companies have gone bankrupt, value in the sector plummeted, and fossil fuel sector employment fallen off a cliff. We saw “splurge” from the unemployed in that sector. 

Third, as the Secretary knows, inflation is a function of insufficient supply to meet demand, and when government spending is considered, too much spending without revenue to support it. Both of these are happening now, but not because demand is out of control.

Instead, demand has struggled to return to normal, while supply of everything – which is dependent on fossil fuels – has struggled to keep up. This is the prime cause of inflation. When a major part of the energy sector is intentionally diverted, slowed, and shut down, the price of gas rises. It rose $1.98 to $5.00 between January 2021 and July 2022. That raises all dependent prices, from fertilizer and food to transport and heat. 

To this, add another basic – enormous – cause of inflation, now and always. When a government, which produces nothing and is not checked by profit motive, losses, or bankruptcy – when it spends in excess, the result is a devaluation of the currency domestically. 

That is happening in spades. Biden and the Democrat Congress spent more than seven trillion dollars, and Biden aims to spend unilaterally another trillion on loan forgiveness, yet in that 24 month period, they took in 4.1 trillion. Stepping back, this has driven national debt to 31 trillion. 

With all due deference, the Secretary – and former FED Chair – knows this. She also knows that attempts to slow inflation will take time, and elevated interest rates – versus reopening the energy sector and cutting federal overspending – will only drive this economy deeper into recession, raising the cost of borrowing, interest on credit cards, mortgage rates, and everything else. 

That, of course, causes cuts in hiring and investment, since higher interest and rising wages means companies have to recoup those loses somewhere. To survive, they cut employment and raise prices, which reinforces price inflation, causing insecurity that produces demands for higher wages, just accelerating the cycle.

No, Madam Secretary, the average consumer is not to “blame” for an economy that is unusually volatile, markets that are in constant churn, and a riptide of confidence – up with federal handouts, down with the hangover of paying for them.  

This inflation disaster – which is not likely to end soon – is NOT the fault of consumers, many of whom lost their jobs, job security, stable incomes, and basic ability to pay bills from the combination of overzealous lockdowns and wild federal spending, further compounded by putting energy in peril.

The sad thing is this administration has few members with any credibility at all – with lies, misstatements, and shading of basic truth a daily White House event. Secretary Yellen was one who still had some measure of public trust. To put her on late night comedy to blame Americans is a sad turn.

This turn, in the final analysis, tells us something important. The Biden White House has no answers. The President’s team is doubling down on nonsense, the idea that Americans who want to work hard for dollars that keep purchasing power and can be saved without loss – are now to blame.

What is needed is not complicated. It is actually quite simple. America needs to have leaders who cut excess federal spending, control expanding entitlements, reward work rather than non-work, if possible cut taxes – leaving more money in private pockets. Also needed is a reopening of – and pride in – the fossil fuel sector, even as we explore renewables, efficiencies, and carbon sequestration.

Getting this right is not hard. And perhaps – direct to the point – the party that is “splurging” is not the average worker, consumer, and taxpayer. This is not the fault of Americans. It is the fault of this Federal Government, which needs to stop spending in excess, respect the average American, not fob off their failures on those who – ironically – pay their salaries. Blaming Americans for inflation is just bunk.


We hope you've enjoyed this article. While you're here, we have a small favor to ask...

Support AMAC Action. Our 501 (C)(4) advances initiatives on Capitol Hill, in the state legislatures, and at the local level to protect American values, free speech, the exercise of religion, equality of opportunity, sanctity of life, and the rule of law.

Donate Now

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter
and Download the AMAC News App

Sign Up Today Download

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter!


Subscribe
Notify of
98 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
tika
1 month ago

she’s crazy as an outhouse rat!

edward
1 month ago

Of course communists NEVER accept blame for when they screw things up. It has certainly happened enough times on this planet!!!!!

Marta Alvarez
1 month ago

This entire Administration is an assault on the American people. On top of ruining the economy, they have the nerve to blame it on us. I think that the Bill Gates and Jeff Besos of the technology world are not going to be happy with Ms Yellen’s statement. She has proven to be totally inept.

Miranda
1 month ago

I my opinion, the whole Biden administration should be impeach. All this people are inept and also corrupt.

Marc Humes
1 month ago

You know when Yellen is lying when her lips move ..

Stan d. Upnow
1 month ago

When did you Ever hear any of the Progressive-Socialists stand up and take responsibility for their failures? You didn’t, because to them these catastrophes are by design & purpose and viewed as successes.
This is why there will never be, and should Not be, any compromise with these anti-American subversives. Virtually none of the stupid GOP gets it. Why I cannot stand them and their rah-rah political BS. Do Not count on them to be our savior!

Darlene Ashley
1 month ago

The Biden administration’s outrageous spending is responsible for inflation, and worst of all, I think it’s being done on purpose to cause chaos!

Word of Truth
1 month ago
Reply to  Darlene Ashley

and to get votes. Give me free stuff and I’ll vote for you.

Robert Zuccaro
1 month ago

But she is right! Everyone who voted for Joe Biden and Soviet-style Democrats is to blame! We went from the best economy in 50 years to the worst. Congrats on your voting choice!

vetran689
1 month ago

I did not lose any of my small annuity under Trump but have l lost 25% under Vladamir Biden, also I was told by RNC that Soros outspent them BS they handed it to the Dems, Mitch pulled money from OZ and whoever he did not like. Here in Nevada I saw 6 to one leftist adds most I believe played fast and loose with the truth and I saw no rebuttal from our candidate to these adds. I also question the intellect of the voters voting in the same people that are responsible for the spending and taxes or they are on the public dole, they should realize that the money will run out some day and when it does this country will fall into anarchy. No welfare, Medicare, Medacade no social security because the powers will rob it all to pay for entitlements!

Granny26
1 month ago

We need to stop donating to countries that hate us and buying foreign oil when we have enough here to support us for years. Morons in DC.

Chuck
1 month ago

“The Biden white house has no answers”. ???/ Joe and the ‘deep state’ (“swamp, insiders, establishment”) know exactly what it is doing and are very good at it. All we talk about is the
problems and the ‘useful idiots’ employed by the deep state. They are constantly moving us
towards world govt. by systematically tearing down America. We need to be concentrating on the people and groups behind the scenes who are controlling the program. How many constitutional Americans know all about the Council on Foreign Relations. Joe said “I work for him”(its president). Hillary said “I’m glad they are now just down the street so I don’t have far to find out what I am supposed to be doing”. How about the “Bohemian Grove, Bilderbergers, Round Table, Trilateral Commission”, etc. We need to be concentrating on the head, not the tail.

Philip Hammersley
1 month ago

EVERY member of Slow Joe’s cabinet is incompetent IF competence means helping Americans. If “competence” means pushing Marxism and godlessness, they are all very “competent.”

JonsOn
1 month ago

Not only does Janet Yellen’s voice make her sound stupid, she is a total idiot. I wonder why Joke Biden didn’t put people in his cabinet that were actually smarter than him. Yellen is just another “secretary” who is as dumb or dumber than this incompetent president. Blinken, Buttedgeedge, Yellen, Austin, Granholm, Garland, Backarea(aka Beccera) and Jean-Pierre are all in over their heads and we the people are paying the price. Let’s hope that in 2024 the cheating gets stopped. I’m not holding my breath as it sure wasn’t stopped this November.

John
1 month ago
Reply to  JonsOn

I don’t think either Yellen or AOC even took econ 101, We got the Petter principle going here.

Stan d. Upnow
1 month ago
Reply to  JonsOn

Don’t you understand yet that to the Progressive-Socialists competency, intelligence, and credentials have nothing to do with being appointed to high posts? They only require that one checks all the right boxes, so to speak. Top of that list is sworn allegiance to the Progressive-Socialist cause.

In every totalitarian regime, those who even appear to have any real ability are viewed as a threat and swiftly eliminated. Also disposed of are those whose actions helped the rulers cement their grip on power.

Armando
1 month ago

Why do we not discuss the rising costs of employment and labor as a cost of increasing inflation? On average, about 25 – 30% of all business expenses are due to labor and costs of employment. States’ minimum wage increases cause increases in all wages. For further discussion … see me on TruthSocial.com at “SMARTaxFreedom”.- truthsocial.com/@SMARTaxFreedom

Duane
1 month ago

What? Our government has SPENT over $5 Trillion dollars since the beginning of 2020 and the covid!! That’s TRILLION, folks! That’s 1/4 of our total GDP! So, who was doing the spending? It’s utterly shocking that a person in a position like her doesn’t mention or recognize it.

MERITREADER
1 month ago
Reply to  Duane

She absolutely recognizes all of this and more. JANET YELLEN has been bought and paid for and is just another MOUTH that spews crap she has learned from her keepers. I hope she is smart enough to understand that one day she will pay the ultimate penalty for her unfathomable crimes against every American citizen. She will probably opt for the “FINAL JAB” as she is such a COWARD to have dropped to the SCUM level of the pond. She is just collecting More of our $$$ for her relatives now, along with the rest of the criminals in office. No need to listen to her ‘voice of treasonous crap’.

tika
1 month ago

by implication she does not consider herself American.

Duane
1 month ago
Reply to  tika

Most of these people like her consider themselves SPECIAL, ELITE. They are the know it all, UNTOUCHABLES. Real sad.

Hal-
1 month ago

Woe is me! When will a controlling majority group of voting American citizens be large enough to overcome the voting rigging of the DemocRat party? Sadly, I don’t see the horizon for that time in the near future.

Stukahna Sandbahr
1 month ago
Reply to  Hal-

No conservatives tech savvy enough to outwit the opposition?

5string
1 month ago

Evidently not.

Hal-
1 month ago

Well, Yellen has to put out her nonsense because the DemocRat liberal News Media is a little reluctant to spread such nonsense alone.

MERITREADER
1 month ago
Reply to  Hal-

Her $$$$$$$$$ PAYCHECK Depends on the Level of Crap she Speaks for her keepers.

LMB
1 month ago

The 3 percenters will agree with her! But the 97% will see her as spouting BS!

Dennis
1 month ago
Reply to  LMB

And you have someone that stupid in that position!

Granny26
1 month ago
Reply to  Dennis

Look who’s in the oval office!!! Still need to ‘drain the swamp starting with the oval office’.

David Millikan
1 month ago

Who’s getting RICH off DICTATOR Beijing biden’s INFLATION?
MORE PACKAGING and LESS FOOD and LESS PRODUCT.
How much of DICTATOR Beijing biden’s INFLATION that WE ARE PAYING FOR is going to PAY and SUPPORT his ILLEGAL ALEIN TERRORIST INVASION?
How much is going into DICTATOR Beijing biden’s POCKETS?
DICTATOR Beijing biden IS RESPONSIBLE FOR CAUSING INFLATION WITH HIS ‘INCREASE INFLATION ACT’ and FAILED Unconstitutional Policies.

MERITREADER
1 month ago
Reply to  David Millikan

It will NEVER END unless we stop waiting for ‘someone’ to push hard against them. THE SUPREME COURT MUST ACT NOW OR NEVER. WE MUST REINSTALL TRUMP INTO OFFICE. THE 2020 ELECTION MUST BE DE-CERTIFIED.

98
0
Would love your thoughts, please comment.x
()
x