Obama Economist: Biden’s Economic Excuses Are “Dishonest”

Joe Biden’s excuses on the inflation and supply chain issues hammering the American economy were criticized by an Obama Administration economic advisor last week. In a piece in the New York Times, Steven Rattner said that Biden is being dishonest.

Last Thursday, the Bureau of Labor Statistics reported that the consumer price index for inflation rose at a year-over-year rate of 7.5 percent last month. That marks the most excellent bump in inflation since 1982.

Lester Holt with NBC News asked Biden about his claims last year that inflation was only “temporary” and went on to ask him how he defined that term. Biden was only able to respond with the tired talking points about the supply chain and called Holt a “wise guy.” Biden added that his advisors told him that inflation would “taper off” at some indefinite point in the future.

Rattner said Biden’s blaming of the supply chain is “simplistic and misleading.” He said that America’s current price inflation was caused “by no means” by supply chain issues.

He said that US supply problems result from an “overstimulated economy” and not the cause. He said blaming our price inflation on supply chains is like “complaining about your sweater keeping you too warm after you’ve added several logs to the fireplace.”

Rattner stated that the actual cause of current inflation is substantial increases in spending on “durable goods.” Those include things that the US cannot produce domestically or import from other countries. He added that the most significant cause of that spending is the result of “vast amounts of government rescue aid,” referring to the stimulus bills enacted during the COVID-19 pandemic.

According to Rattner, the explosion in government spending and money creation has led to “too many dollars chasing too few goods.” That, in turn, results in skyrocketing prices and surges in demand leading to shortages.

Rattner said that higher prices are also caused by the “Great Resignation” of the COVID pandemic and domestic labor shortages across multiple industries. He told Biden that he “can’t blame clogged ports” for the labor crisis.

Rattner said that the Biden Administration should learn to “be more honest” and reduce budget deficits as a critical part of fighting inflation. Unfortunately, the people running the Biden White House seem to still think Americans will believe that the failed “Build Back Better” spending agenda would cost the economy “zero.”