In mid-June, searing inflation re-emerged in America, as the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics indicated that inflation in June had grown at the fastest rate in more than 40 years. US President Joe Biden has been in office for 18 months now, and the media is starting to note that his administration got inflation wrong and that his administration made “questionable claims about the peak of inflation.” Meanwhile, the Biden administration and a few reports suggest there are “signs that inflation may have peaked” in the United States, as commodity and oil prices have fallen lately.
Paul Krugman says ‘I was wrong about inflation’, Larry Summers says ‘chances are probably better than half that a recession starts next year’
July 13, Bitcoin.com News reported on the June CPI report which noted that inflation measures that month reflected a 9.1% year-on-year increase. The increase in inflation in America recorded in June 2022 increased at the fastest rate since November 1981. The White House then noted that the CPI report was already out of date the day the Bureau of Labor published the data.
Following the latest CPI data, reports Noted that West Virginia Sen. Joe Manchin snubbed Biden’s climate bill due to inflationary concerns. While the incumbent president has been heavily criticized for inflation, on July 15, senior White House correspondent Alexander Nazaryan highlighted in an editorial that inflation has become “Biden’s political nightmare.”
Inflation jumped so high that the American economist and Nobel laureate, Paul Krugmanwrote a article for the New York Times noting that he was “wrong about inflation”. Krugman specifically spoke about the US rescue plan and he mentioned that some economists had warned that this would lead to higher inflation. Krugman said that, like many other Keynesian economists, he was more “relaxed” about the stimulus package.
“Ultimately, of course, it was a very bad call,” Krugman wrote on July 21.
Krugman also quickly mentioned Larry Summers, former economic adviser to former President Barack Obama. Summers recently spoke about a recession at the Aspen Security Forum. The summers Explain that “the chances are probably better than half that a recession starts next year”. The Economist also touched on crude oil and commodity prices, and further highlighted issues related to “the geopolitical situation”.
“I think a lot will depend on what happens outside of the economic realm,” Summers said. said at the Aspen Security Forum. “It will also depend on luck and, you know, the skill of the [Federal Reserve] turns out to be… They have a very, very difficult balance problem in setting monetary policy, given the situation we find ourselves in,” he added.
Biden’s ‘half-truths and outright lies’ are exposed
A few recently published reports have begun to denounce the Biden administration’s “questionable claims about the peak of inflation.” For example, Kevin A. Hasset, an author of nationalreview.com discussed Biden’s apology and a ‘new all-time low for economic communications’.
“Biden is even affirming that two consecutive negative quarters is not a recession,” writes Hasset. Hasset, senior adviser to the National Review Capital Matters, concludes by saying that “students of economic history know best. Indeed, there will be no controversy when this year’s story is written, and this story deserves to be kept in mind while the machine is ticking.
On July 20, 2022, two opinion contributors for The Hill, EJ Antoni and Stephen Moore, published an article titled “Biden’s Six Favorite Lies About Inflation and the Economy”. The authors to sum up “the Biden administration’s most economically consequential deceptions.”
Disappointments include telling people “Nobody earning less than four hundred thousand dollars will see their taxes go up”, which turned out to be untrue. The authors criticized the White House for saying inflation is worse everywhere except the United States, and when Biden said the economy was at a standstill when he took office 18 months ago. Moore and Antoni accuse Biden of exaggerating like when the US president told the press he was responsible for the strongest job-creating economy of modern times.
“This is more of an exaggeration than a blatant lie,” wrote The Hill’s opinion contributors. Finally, the authors criticize Biden for saying American families are less in debt and economies are on the rise under his administration and how Biden has Noted that he is doing everything he can to bring down gas prices.
“Perhaps none of these half-truths and outright lies should be too surprising – what should we expect from the administration that first denied inflation and then declared inflation to be transient, then claimed it was just a high class issue?” conclude the authors of the opinion.
Meanwhile, Biden is also accused to tell people if they got vaccinated they wouldn’t get Covid-19, at least four times in the past. However, the American president is currently in solitary confinement for contract the disease after taking all recommended vaccines and boosters.
Additionally, a report published by the Wall Street Journal (WSJ) now says “there are signs that inflation may have peaked,” based on specific signals from the US economy. The WSJ quotes Evercore ISI Chairman Ed Hyman when he “pointed out numerous indicators that 9.1% could have been the top.”
What do you think of Krugman’s latest article and Summer’s probabilities of a US recession? What do you think of the criticism US President Joe Biden is receiving for his statements on the economy? Let us know what you think about this topic in the comments section below.
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