Joe Biden: U.S. President

By that measure no president except maybe Xi Jinping would be allowed to stand in a picket line. If anyone thought Biden caused inflation, they would be grossly misinformed.

Do you think Biden has brought down inflation like he claims and, if so, how?

I think that is the job of the Federal Reserve and they have tampered inflation by increasing interest rates. This has been effective yes.

Do you still believe the primary cause of inflation was stimulus payments? How does that explain why inflation is still occuring, after stimulus payments ended, and a global issue not isolated to the US?

Biden’s $1.9 trillion stimulus package in March 2021 triggered inflation, as Lawrence Summers, Obama economic adviser, warned in an opinion piece in the Washington Post in February 2021:

Federal Reserve officials pushed back on Thursday against concerns raised by two prominent economists — Lawrence H. Summers, the former Treasury secretary, and Olivier J. Blanchard, a former chief economist at the International Monetary Fund — that big government spending could overheat the economy and send inflation rocketing higher.

Those warnings have grabbed headlines and spurred debate over the past two months as details of the federal government’s $1.9 trillion pandemic relief bill came together. Mr. Summers in particular has kept them up since the legislation passed, saying it was too much on the heels of large spending packages last year. He recently called the approach the “least responsible” fiscal policy in 40 years while predicting that it had a one-in-three chance of precipitating higher inflation and maybe stagflation, or a one-in-three chance of causing the Fed to raise rates and pushing the economy toward recession.

But two leaders at the Fed, which is tasked with using monetary policies to keep inflation steady and contained, gave little credence to those fears on Thursday. Richard H. Clarida, the central bank’s vice chairman, and Charles Evans, the president of the Federal Reserve Bank of Chicago, both responded to questions specifically about Mr. Summers’s and Mr. Blanchard’s warnings.

“They have both correctly pointed out that the U.S. has a lot of fiscal support this year,” Mr. Clarida said on an Institute of International Finance webcast. “Where I would disagree is whether or not that is primarily going to represent a long-term, persistent upward risk to inflation, and I don’t think so.”

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The large gaping hole in your argument that fiscal stimulus is the main driver, and the reason I assume you avoided the second question, is that it doesn’t explain why inflation is a global issue not isolated to the US, or why it continues after fiscal stimulus dried up. Additionally inflation continues in a few key areas where it has subsided in others:

Food - War in Ukraine
Oil - War in Ukraine

All areas that put pressure on the supply chain initially like covid lockdowns in China and the spike in demand after the pandemic has since subsided. So it is no wonder that we are seeing inflation in food and energy still due to supply disruptions like the war in Ukraine, while inflation in other areas has come down.

Supply shortages caused by global supply chain disruptions following the onset of the COVID-19 pandemic have added pressure on U.S. inflation. Our analysis suggests that supply chain shocks can have significant impacts on PCE inflation by raising inflation expectations and intermediate input costs. We estimate that supply chain disruptions contributed on average about 60% of the run-up of U.S. inflation during the past two years. Since mid-2022, indicators show that increased pressure from the supply chain disruptions have been easing gradually, which has contributed to the slowdown in inflation

The big guy was playing word games and relying on the stupidity of the electorate, plus hoping for an assist (or in this case a blind eye) from the MSM.

He was referring to the rate at which inflation was occurring. Which is to say if the rate of increase was @5% last year and that rate had declined to @4% he was chalking that up as an achievement of his admin and claiming he was bringing down inflation, while it was still increasing, just not increasing at the rate it was previously. :grinning:

Target is 2%, not 0% so getting the rate down is still an achievement, but it is an achievement of the Federal Reserve, not Biden. Excluding oil and food, it’s getting to normal which is good if we achieve the soft landing the Fed has done it’s job.

And as described above the majority of current inflation is driven by supply chain issues so there is only so much the Fed can do in the first place with monetary policy. They can’t stop a war in Ukraine or volatility in the Chinese market.

So to help get over this latest rough patch of high inflation, high rents, crushing student debt and inadequate wages the Biden could drop another $1.9 trillion on consumers and inflation would barely budge, right, so why not?

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Are you here for actual discussion or just sarcasm to push your own narrative? The data and the very obvious geopolitical factors show that inflation is going to continue due to supply led constraints. Could the president do something about those external factors like food and oil prices? Certainly he could appease Russia and pull all aid from Ukraine. That’d be an option. He could get rid of tariffs and appease China that may also cause a spike in demand.

Unfortunately most voters are not well informed on geopolitical issues, but if the US wants to de-couple from China, which I think we should, then the result will be inflation. We can’t stave off decades of low inflation, and not expect high prices to come back through near-shoring/sourcing in higher cost countries. Thats not a politically popular decision to make, but one that next president Dem or Repub will have to make.

So why not help struggling consumers survive by giving out another $1.9 trillion or so until supply contraints ease and inflation comes down? What’s the harm?

Why is it so hard for you to accept that supply chains can cause inflation? You can look at the graph I posted for the demand side of the equation if that makes you feel better. Fiscal stimulus is a portion of the 40%.

We’ve been through this before and about the same when we discussed Democratic presidents cutting budget deficits. No amount of data/hard evidence is going to convince you. All problems stem from those radical leftists… you could just post that over and over instead of going through the motions of making an intellectual argument.

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Of course inflation is a supply/demand equation. Low supply + high demand ($$) = inflation. It’s like fire. Oxygen + fuel = fire. Without both there is no fire. Biden doesn’t control the supply side of the equation but he does control the $$ demand side. If he hadn’t dropped $1.9 trillion (oxygen) into a a supply constrained economy inflation would have been $1.9 trillion less.

What do you think would’ve happened to the economy if there was no stimulus? No president would survive that decision. So easy for you to say. Reality is much more complex. What Biden should do is continue to allow the Fed to do its job.

The Biden impeahment inquirygot off to a rousing start with two star Republican-called witnesses:

“I am not here today to even suggest that there was corruption, fraud or any wrongdoing,” said Bruce G. Dubinsky, a forensic accountant. “In my opinion, more information needs to be gathered and assessed before I would make such an assessment.”

and

Likewise, Jonathan Turley, a professor at George Washington University’s law school, told the panel that while he considered an inquiry warranted, “I do not believe that the current evidence would support articles of impeachment. That is something that an inquiry has to establish.”

Fox News Neil Cavuto:

“I don’t know what was achieved over these last 6+ hours,” adds, “this was built up where there’s smoke there would be fire… where there’s smoke today, we got more smoke.”

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$1.9 trillion stimulus in early 2021 was unnecessary in my opinion. Prices for necessities were low. Interest rates were rock bottom. People living on fixed incomes were doing ok. Jobs were plentiful and vaccines were being rolled out free. Student loan payments were on pause.

Now prices for necessities are high and getting higher still with inflation currently at 5%. Interest rates are way up. War in Ukraine has caused food and fuel prices to spike. The student loan repayment pause has ended and student loans are now accruing interest starting this month and repayments will be due again in a few days.

If government handouts don’t cause inflation now would be the perfect time for the government to drop $1.9 trillion on people struggling to survive on fixed incomes or low paying jobs until the Fed manages to bring inflation down again.

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Isn’t that the point of an inquiry?

Where is the quote where he says it’s a witch hunt? :laughing:

Uh huh. Did he say the inquiry was unwarranted?

Glued to Fox News are you? :joy:

Yeah I think thats not being realistic. If you think homelessness is a problem now, then just imagine when thousands are kicked out of their homes because they couldn’t make ends meet after losing their jobs in the pandemic. US infrastructure is also in desperate need of investment. If we didn’t do any of that then I’m sure you’d be saying look at terrible progressive run cities with crumbling infrastructure.

Conservatives/Libertarians are great for standing on the sidelines criticizing but terrible at governing since that requires actual solutions.

If you look at what they’ve done with student loans they’ve eliminated the predatory practice of negative ammortization and relaxed the standards for income based repayment. This is a great alternative to the absence of any loan forgiveness.

Handouts is a loaded term since corporations, people all benefit from stimulus. If you don’t like fiscal stimulus then you should oppose all forms of government subsidies including those that help farmers continue to produce crops in the United States like cotton that would quickly go to Africa or China without it. Let’s expedite the export of jobs overseas. Stand up for what you believe in and oppose all forms of welfare since you think those are the main drivers of inflation.

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I saw reporting on Flipboard from a different source about a Fox news anchor saying the same thing

When even Fox has trouble finding a reason for outrage, I think there might be nothing there