Tuesday, April 12, 2022

Ben Shapiro: Yes, It's Biden's Inflation

 This week, America received news of yet another shocking inflation report: over the past 12 months, inflation has skyrocketed 8.5%, outpacing wage gains by 2.9%. That inflation has flooded every area of American life, from gas (up 48%) to airfare (24%) to furniture (16%) to milk (13%). Inflation is costing the average American family hundreds of dollars per month -- and, as we know, inflation is a highly regressive tax, harming those at the bottom of the income spectrum the most.

For its part, the Biden administration blames Russian President Vladimir Putin's invasion of Ukraine. White House press secretary and incipient MSNBC employee Jen Psaki announced, "we expect March CPI headline inflation to be extraordinarily elevated due to Putin's price hike," and blamed gas prices alone for the spike. That, of course, is ludicrous. In February 2021, the month after Biden took office, the inflation rate was just 1.7%. In April 2021 it spiked to 4.2%. By May 2021, the inflation rate was 5%; it remained in that range until October 2021, when it spiked to 6.2%; it then spiked again to 6.8% in November 2021 and 7.5% in January 2022. 

In other words, the problem ain't Putin.

It also isn't supply chain issues alone. The core inflation rate in Europe has remained well below that of the United States; the harmonized index of consumer prices (HICP) was 5.9% in February 2022 in the Europe area, compared with 7.9% in the United States. 

So, what is the problem? The problem lies in loose monetary policy from the Federal Reserve for years on end, combined with wildly irresponsible economic policy from the Biden administration. Begin with the Federal Reserve. Between 2008 and 2015, the Federal Funds Effective Rate was essentially zero. It rose to 2.39% in May 2019, then dove back down to zero amidst the COVID-19 recession. This means that the Federal Reserve essentially subsidized borrowing and spending for years on end. 

But the problem didn't stop there. During the COVID-19 downturn, the Federal Reserve purchased some $4 trillion in assets, injecting liquidity into the economy in the mistaken belief that the problem was lack of demand, not lack of supply. This superheated the economy; as supply chains attenuated, prices rose dramatically.

All of this was accompanied by ridiculously spendthrift policy from the Biden administration. The Trump administration, along with a bipartisan contingent in Congress, spent nearly endless amounts of money as the American economy was subjected to an artificial coma. But the Biden administration entered office with a working vaccine and COVID-19 on the wane -- and then proceeded to inject trillions more in spending into the economy. In 2020, the government spent approximately $6.6 trillion in federal outlays; in 2021, the year of recovery, the government spent $7.2 trillion. 

That spending was wildly unjustifiable. With vaccines available and people going back to work, the Biden administration had a responsibility to leave the economy alone. Instead, Biden insisted on reshaping the economy according to his whim. As Ezra Klein lamented to former Treasury Secretary Larry Summers, "there was a reason the Biden administration wanted to run the economy hot... it felt, finally, like we were reaching people on the margins. We were putting a lot of firepower to do that... And then for that to turn into this horrifying inflation problem, which is now eating back those wage increases... I recognize the world doesn't have to please me, but it is maddening."

Yes, reality is maddening. But not quite as maddening as the predictable results of ignoring financial reality, then lying about it in order to blame someone else. 

Ben Shapiro, 38, is a graduate of UCLA and Harvard Law School, host of "The Ben Shapiro Show," and editor-in-chief of DailyWire.com. He is the author of the New York Times bestsellers "How To Destroy America In Three Easy Steps," "The Right Side Of History," and "Bullies." To find out more about Ben Shapiro and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

COPYRIGHT 2022 CREATORS


8 comments:

Anonymous said...

A gallon of "good" milk in Byram is 6 dollars. Beware of ground turkey and beef.....it's expensive AND it might be close to spoiled due to late shipping issues. America is in trouble folks. WAKE UP AND FIGHT.

Anonymous said...

The media like to parrot that airline tickets are more expensive due to the cost of fuel. Not. That's not how it works. The airlines have contracts with fuel providers that provide a fixed cost, regardless if it goes up or down.

Also, you ever notice that when the cost of crude oil goes up the gas stations immediately raise their prices, but when the cost of crude goes down they delay the adjustment?

Friggin' crooks.

Anonymous said...

Have Democrats made anything better anywhere? Last I checked countries (Canada, France) run by the left are in bad shape, states (CA, NY) are in bad shape, and cities (Jackson, Memphis) are in bad shape. GOP is not perfect, but they are far better and stand for freedom. I will vote for them!

Anonymous said...

Garbage!
President's don't control inflation.
The GOP could have put guardrails on CV aid...they didn't.Indeed, do your homework and get the Senate transcripts.

Anonymous said...

@4:33 Mississippi has been run by the GOP for many, many years. We're still at the bottom of every good list and the top of every bad list. And standing for freedom is not the same as joining the military and fighting for freedom. I do know that we have lots of Democrat and Republican leaders who have never served in the military, but they are always talking about fighting for freedom. Talking is easier than doing.

Anonymous said...

@10:39
Mississippi is at the bottom entirely because of the democrat controlled areas like Jackson. Too much time and money is wasted caring for people who will never care for themselves or their young.

Anonymous said...

10:39 : We are the bottom because DEMOCRATS run the public school system.

Anonymous said...

@10:39
MS is at the bottom because of the Democratic controlled areas: Jackson, the Delta. Take them out of the equation and MS's education levels equal Maine, Oregon, Nebraska, etc. Liberals sure are dumb, especially the Fondren hippies!


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In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


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There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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