Wednesday, August 3, 2022

Inflation could cost Biden and the Democrats greatly | Washington Examiner

Biden isn’t on the ballot this year, but these numbers will be difficult for other Democrats to overcome. They are likely to become inflation’s next biggest losers. Even as the president sought to reassure the public of his commitment to fighting inflation in a Wall Street Journal op-ed, he wrote, “The U.S. is in a better economic position than almost any other country.” A June Reuters poll found that 71% believed the country was on the wrong track. A scant 18% disagreed.

“Democrats believe that they can spend their way to prosperity. It doesn’t work with a home budget, and it certainly doesn’t work with a national one either,” said Republican strategist Bradley Blakeman.

By contrast, Republicans will probably be political winners as a result of this inflationary run. This is despite the fact that much of the spending helping to feed this inflation was passed by a Republican-controlled Senate in addition to a Democratic House and signed into law by former President Donald Trump. But Biden’s $1.9 trillion American Rescue Plan passed without a single Republican vote and was signed into law after the economy was already awash in over $3 trillion of stimulus spending from the prior administration and Congress.

But inflation was not evident to ordinary consumers under Trump. The Consumer Price Index rose by an average of 1.9% annually each year the former president was in office. The last time inflation was a major political issue, it had been high under two Republican presidents. Richard Nixon attempted to fight it through wage and price controls, while Gerald Ford launched the much-ridiculed “Whip Inflation Now” campaign. But it was Democratic President Jimmy Carter who bore the brunt of the blame, as stagflation (an unappetizing mix of slow economic growth and high inflation) contributed mightily to his 1980 landslide defeat. Republicans also won their first Senate majority since the 1950s that year.

via www.washingtonexaminer.com

"[M]uch of the spending helping to feed this inflation was passed by a Republican-controlled Senate in addition to a Democratic House and signed into law by former President Donald Trump." That's right.

https://rightcoast.typepad.com/rightcoast/2022/08/inflation-could-cost-biden-and-the-democrats-greatly-washington-examiner.html

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Comments

True, but Biden poured petrol on the pyre.

There's also plenty of blame to be put on the Fed these last dozen years.

Still, the US tradition is to blame the President who happens to be in office at the time. It may be economic illiteracy but it's the American Way.

Posted by: dearieme | Aug 3, 2022 2:11:08 PM

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