Joe Biden’s first year of missteps and disasters is becoming more defined by the ongoing and worsening inflation crisis hammering ordinary Americans. A new CBS News poll released over the weekend shows that fully 70 percent of Americans disapprove of Biden’s handling of price inflation.
Meanwhile, the administration continues to shift blame anywhere it can rather than accept any responsibility. Biden said two months ago that he believed high gas prices were caused by “anti-consumer behavior” by major oil companies. Then in December, White House press secretary Jen Psaki said that soaring meat and food prices were due to the “greed of meat conglomerates.”
Jason Furman, a top economist working for the Obama Administration and now works as a Harvard professor, has come out with some harsh criticism for the Biden plan of blaming America’s producers. He said that corporate greed is a “bad theory of inflation.” Furman observed that any explanation of the dynamics of inflation other than the Federal Reserve is “a sideshow.”
He added that the most crucial reason prices go up is that companies cannot make as many goods as people want to purchase. He said that if prices weren’t going up. As a result, the country would face even worse goods shortages than we are now.
Lawrence Summers also served the Obama Administration as Director of the National Economic Council and Bill Clinton’s Secretary of the Treasury. He recently warned Biden that misdiagnosing the inflation problem as the agreed issue only increases the risk of significant recession. He added that blaming producers only delays the Fed’s date when dealing directly with inflation.
Summers said that the blame rhetoric obscures that the economy is heading toward “higher entrenched inflation.” He said the indications are present in wage statistics and labor shortages afflicting the country. Summers went on to say that the economy is burdened with a “massive and overheated” labor market with the highest ratio of open jobs to unemployment in history.
He noted that every industry is suffering labor shortages, suggesting excess purchasing power and demand compared to the current strength of the American economy actually producing goods and services. Summers said that if production is not brought back into balance, the danger is not just higher inflation but “accelerating inflation.”