Stop me if you’ve heard this story before: Under Joe Biden’s administration, inflation increases and surges another month. According to the Bureau of Labor Statistics, the “all items index rose 6.2 percent for the 12 months ending October, the largest 12-month increase since the period ending November 1990.”
Another month, another multi-decade inflation number hit. The Wall Street Journal added that the latest inflation report endangers the president’s domestic agenda: “The highest inflation in three decades is posing a new challenge for President Biden as he seeks to enact another pillar of his economic agenda while also easing Americans’ concerns about rising consumer prices.”
The natural criticism from Republicans is not an extreme line, and it’s effortless. Adding trillions of new spending to the economy would only exacerbate inflation, causing demand to go up further and forcing everyday Americans to pay higher and higher prices.
And while Biden, the White House, and pro-administration pundits in the press have downplayed the impact trillions of new spending could have on inflation, the evidence is less friendly.
The Wall Street Journal got input from Moody’s Analytics on the impact the Democrat’s legislation could have on inflation.
Moody’s “estimated that the roughly $1 trillion infrastructure bill, which includes $550 billion in new spending, together with the $2 trillion social-spending and climate bill, would add about 0.3 percentage point to inflation, on average, for the 2022 to 2024 period.”
That’s an estimate across the board and an average. The impact on individual items could be considerably worse. Politico jumped into the Bureau of Labor Statistics report on inflation and pulled these eye-popping numbers:
Where Americans are seeing the most inflation (year over year): gasoline prices are up 49.6% … fuel oil up 59.1% … utility natural gas up 28.1% … used cars and trucks up 26.4% … beef prices are up 20.1% … pork up 14.1% … bacon up 15.4% … chicken up 8.8% … eggs up 11.6% … milk up 4.3% … apples up 6.7% … coffee up 4.7% … peanut butter up 6% … baby food up 7.9% … prices for furniture and bedding costs had their biggest jump since 1951 … prices for new cars and trucks had their biggest jump ever.
What would an extra estimated 0.3 percentage point increase do, on average, to all these numbers? It’s all conjecture at this point, but I doubt Americans feel like taking any more price increases — even though every indicator we have says that inflation will continue well into 2022.
Lawrence Summers, the former economic advisor to Barack Obama’s administration, has warned Democrats about inflation non-stop since February. He’s continuing that drumbeat this week over the latest numbers:
“The policymakers in Washington unfortunately have almost every month been behind the curve … They said it was transitory. It doesn’t look so transitory. They said it was due to a few specific factors. Doesn’t look to be a few specific factors. They said when September came and people went back to school that the labor force would grow and it didn’t happen. So I hope they’re right … My experience is that you should hope for the best and plan for something much less than the best.”
The story continues to be the same. Inflation is increasing, and the Biden White House continues to be behind the curve every step of the way.
That’s another continual story with the White House too. Whatever the issue, Joe Biden is leading from behind on everything. On the pandemic, Biden wasted the miraculous progress of Donald Trump’s Operation Warp Speed, and we’ve spent the year mired in a bureaucratic morass of a response to COVID-19.
In Afghanistan, Biden left Americans and our allies trapped behind enemy lines, at the mercy of terrorists. A recent report out of Foreign Policy Magazine said that thousands of people are still trapped, with little hope of American support. The Biden administration has swept that debacle under the rug.
And now, on inflation, the Biden White House is repeating the same playbook. Americans have experienced increasing inflation in every part of their lives since February. And yet we have empty platitudes from Biden and his cabinet or promises that the legislation he’s pushed for months will magically fix inflation.
Joe Biden has managed to be wrong about every single major event to strike his presidency. He’s speedrunning through all the greatest hits of Jimmy Carter’s administration. We even have a hostage crisis in Yemen, where Iranians have stormed the U.S. Embassy, stolen equipment, and taken hostages.
History may not repeat, but it’s an understatement to call it a rhyme now; Biden’s administration is a full-on cover band for every lousy event of Carter’s administration. And at the rate Biden is going, people are going to wish the malaise of Carter because Bidenflation is running amok with little sense Biden cares. At least you knew Carter cared; is anyone in Biden’s administration doing anything other than optics control?
It’s the same story every week with this president, and it’s already old. We haven’t even hit a year yet with Biden.