Watching the administration of President Joe Biden and his Democratic colleagues on Capitol Hill navigate the current round of economic woes, one struggles not to recall the tenure of another U.S. president who had the misfortune to govern during one of the most trying economic periods in the nation’s history.
Biden took office amid an unprecedented global pandemic that impacted the global economy. The pandemic slowed and shut down portions of the supply chain. Goods were not available on retail shelves due to either production interruptions, shipping impasses, or both.
A November 2021 poll showed that 62 percent of registered voters blame the Delaware Democrat for the inflationary spiral that has produced frightening results in the U.S. Consumer Price Index.
The U.S. Bureau of Labor Statistics reports: “From December 2020 to December 2021, consumer prices for all items rose 7.0 percent, the largest December to December percent change since 1981. Over the year, food prices increased 6.3 percent, a larger percentage increase than the 12-month increase of 3.9 percent in 2020. Food at home prices increased 6.5 percent in 2021, the largest over-the-year increase since 2008.”
Particularly hard hit are prices for gasoline, used cars and trucks, other forms of energy piped utility services, meat, poultry and eggs, and new vehicles. At the midpoint of the Biden term in office and with mid-term congressional elections upon us, that level of inflation on those categories of products impact virtually every segment of American society and are the very definition of “kitchen table” or “pocketbook” issues that decide elections.
To make matters worse, Treasury Secretary Janet Yellen said that she expects inflation to remain unchanged through 2022.
Republicans have the perfect economic issue for the 2022 and 2024 election cycles teed up despite some basic facts about the path to the nation’s current inflationary cycle. That charge is lodged based on what the GOP says is Biden’s flooding of the economy with government spending.
First, inflation is not the province of the American economy but exists in the global economy. Second, many of the price hikes for food and other critical goods were in place and at the highest levels in over a decade before Biden took office – as were the COVID relief stimulus spending during the administration of former President Donald Trump.
Biden did, however, put forward the American Rescue Plan ($1.9 trillion) and is pushing a $1 trillion infrastructure plan along with his Build Back Better with a $1.75 trillion price tag.
Biden and his supporters likewise struggle with GOP allegations that his vaccine mandates further slowed the economy, but the Supreme Court recently mooted much of that.
Looking back at Republican Gerald Ford’s handling of inflation, the White House took on double-digit inflation with a public relations slogan and a button that read “WIN” – an acronym for “Whip Inflation Now.” History regards that plan as one of the worst public policy blunders in history.
The late 1970s, early 1980s round of inflation (more accurately called “stagflation” by economists as it was marked by stagnant job growth and rising inflation) was caused in great measure by global economic influences beyond Ford’s control. The Organization of Oil Producing Countries’ quadrupling of crude oil prices and the gas shortages and soaring fuel prices was an overriding trigger.
The trouble for Biden and Democrats in the coming elections cycles is that American voters ignored OPEC’s impact on the economic dominoes that fell leading to the Ford administration’s inflation crisis. Most analysts identified inflation and the “kitchen table” and “pocketbook” issues it produced as the critical reason Democrat Jimmy Carter won the White House back from the GOP – along with holding Democratic majorities in the House and Senate.
Carter did not escape the political black hole of inflation in 1980. He lost his reelection bid to Republican Ronald Reagan, and Democrats lost control of the U.S. Senate.
The political party holding the economic bag during periods of high inflation usually doesn’t fare well in the next election. Voters historically have blamed the party in power.
31 comments:
YES. The "Note" says it all. Thank you for being blunt with it.
Both parties will pretend they didn't debase the currency insanely since 2008.
And all of society will conveniently brush aside the artificially depressed interest rates post-2000. No body really remembers that far back do they? Or are they just too happy with their mortgage rates and are willing tell themselves that's the real cost of money?
The point-America has a mirror problem. No one wants to look into it, and it's now intractable. Good luck raising rates for any party and same for not continuing the path of money printing.
Speaking of our leader Biden, has anyone seen much of him lately? He is almost as hard to find as a reasonably priced vehicle. I think his lack of leadership will be the nail in the coffin for Democrats this election cycle.
More copy & paste deep thoughts from Sid Wikipedia
That’s because most Republicans are as ignorant as Democrats.
Inflation is 100% the fault of the private Federal Reserve Bank.
The US Dollar is currently worth a measly 4 cents of what the dollar was worth when the European Central Bankers and their American Central banking proxies, met with congressional traitors on Jekyll Island in 1910 to devise their scheme to take control of the money supply of this once great nation.
https://www.federalreservehistory.org/essays/jekyll-island-conference
One of Sid “I get paid by the word” Saulters best Democratic Apologists pieces yet. Aimed at the simple minded. Must be trying to move up in the Media by being a Democrat mouth piece…. 😂
Blame the Americans and non Americans who voted for Uncle Joe and Auntie Kam . In fairness it's very likely some sort of inflation was coming no matter who sits in the big chair. The current admin just sped it up and made it worse by the sweeping changes they made day one. At the end of the day WE THE PEOPLE have been punked for profit by the last FIVE administrations in some form. We cannot escape that reality. Is there a leader waiting ?
biden is to blame for inflation. his war on the oil and gas industry raises the price of everything. Over regulation raises the price of everything. Mandates that result in people losing jobs. Paying people not to work. Printing money. biden wants to keep all of that in place as long as possible.
I want me one of them "WIN" lapel buttons.
I have in my collection an "Immoral Minority" button. Anyone seen a "Don't Pillory Hillary?"
It's hard to ignore the FACT that Biden is pushing unprecedented spending for programs that do not already exist while the country, if not the world, is still reeling from a pandemic. People recognize that almost all of these programs have nothing to do with the pandemic and will realign our national economy even before we have recovered from this disaster. Even people with no economic expertise are nervous about humongous economic restructuring in the name of pure politics rather than economic common sense, especially during a downturn. If the Democrats don't want the blame, talk economic common sense and stop pushing a political interest group wish list as an economic agenda. They aren't built that way so they will get what they deserve.
I think I speak for most who read this blog, no one cares what Sid Salter’s opinion is on any subject. He’s a wasted paycheck at MSU.
Yes, because it's true. Duh!
.Horrible bogus buffoon biden squarely deserves the credit for inflation; along with destroying the borders and the incredible fiasco of an alleged withdrawal from Afghanistan.
He and his little garden gnome fauchi both deserve to be retired. Or more. Let those two bozos use their ill gotten gains to help defray the expense and sorrow they have generated. Would not cover any tiny part, but a nice idea.
Blaming a political party it sitting president for inflation is exactly what the globalist money masters want you to do.
No comment updates today ?
Dang Sid and Fans blame Head Coach for Losses. Who should be blamed? dems are in control. Every move they have made the last year has been wrong. Its a miracle Inflation is not even worse than it is. You cannot put that much money in the system and Finally the American People started saying no. If Joe had stayed in the basement and done nothing the economy would be humming now.
I agree with 9:39. Sid, if he ever had one, has lost his fast ball. Please stop running his pathetic attempts to remain relevant.
Keep blaming the supply chain on covid. People will just believe it and not look into it for themselves.
Sidney is just too pompously proud to suffer Fauci's Chinese pandemic plus Biden's foreign and domestic gaffed agenda bombs as long as Americans are provided unlimited access to sex slavery and Chinese Fentanyl which are both muled across the border by Biden's Cartel amigos.
But Sidney, must Biden keep spending the Covid budget on hotels and midnight secret plane rides for his invader hordes?
Let me remember. The first thing Brandon did was put a stop to pipelines being built in the U.S. Then he stopped construction of the wall which means all of those people building the wall were out of a job. He then open the border. Millions of illegals were allowed to come into our country. They soon took over quite a few jobs U.S. citizens should have filled. Then just to make things a little worse he decided to mess with covid. It pretty much did what everything Brandon touches, turned to shit. That pretty much doomed the U.S.
Sid is just as dumb and brain dead as Joey B.
Sad, pathetic, water-toter.
Sid knows he's on one of those yellow, plastic water-slides our kids use to put out front with the Sears-sprinkler. Ain't no hope for the boy, he's six feet into the rapids and there are nine trucks rounding the corner. His left nut has escaped the swim-suit, Marty Wiseman and the MSU Chancelor are Hee-Hawing and the boy is about to feel concrete. Concrete is a bitch.
I remember when Sid's opinions were relevant. I think the last cogent column Sid wrote was in 1987.
Retiring a millionaire isn’t enough anymore. The Iron bank of Bravos is evil.
As long as we are split on who the blame for this countries conundrum rests...........we can never win. Nary a soul that posts here is lost on one fact. If Joe Biden was elected then all hell economically would break loose. And it has. Blame is easy and Joe is the low hanging fruit. Our big city voters in this country caused this by voting Dem. Period. End of story. Pray for an asteroid.
The best deterrent to recidivism would be making listening constantly to readings of Sid's articles mandatory for those incarcerated.
It’s gotta be Trump’s fault. I don’t know how, but it just has to be.
We can actually go back to the elimination of the Gold Standard. There is zero tangible worth to currency as a result.
And, frankly, a politicized Congress and Supreme Court intentionally removing so many guard rails on financial and political institutions has thrown us into a situation when there are now efforts to remove the protection of even FDIC accounts and increase the banking industries' desire to engage in risky ventures including bitcoins.
Once upon a time( you know, that one you miss) pension funds didn't get raided or erased in buyouts and banks couldn't gamble with your account money.
So, when the focus is on the money and not how it's earned and when it's in cyberspace, well... "POOF".
Inflation can become unattached to supply and demand. It's not that the supply doesn't exist. Just as our gas prices go up when demand is high for gas, but it's not because the supply isn't available or costs more to produce...it's because it's Christmas or summer vacation time. That's not capitalism, that's a con game.
Anyone watch Uncle Joe last night then Auntie Kam this morning ? You should. You really should.
Pray for an asteroid with PGM precision.
Sid blamed Obama's early woes on GeoWBush's MBS meltdown response and now Biden's to Trump's early Covid moves.
Nothing new to see here. As long as the employers of illegal chicken plucking labor are protected, Sid is a happy camper.
8:59 - Do you think hitting the 'enter' key fourteen times before posting will somehow make your post credible? Or do you just have the shakes?
Neither 9:12
I have a cat.
The cat assumes the worst about people too.
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