I remember inflation before people were talking inflation because I had a leaking roof in January 2021. The cost and supply of materials was something else. Inflation was occurring because of supply shortages.
That is too simplistic. Sure, supply shortages played a major role, but if COVID-related supply crunch was the sole reason, inflation indeed would have been transitory like Jerome Powell was saying at first.
This worked its way thoughr the system. The spending wasn't nearly as bad.
The inflation rose as bad as it did because ...
Inflation,
Inflation,
Inflation,
Inflation. By now you've devoted more posts to condemning Biden's inflation than you've spent ridiculing AOC!
As I will try to explain to you, the inflation you complain of just wasn't that big a deal. Perhaps you know this already, but just want to complain about Biden and can't think of anything more pertinent.
- As others point out, inflation was a world-wide problem during and in the aftermath of the pandemic. The USA had less inflation than many or most other countries. To accuse rather than applaud USA governance for their relatively low inflation is ... Weird!
- Compared with summer 2021, the Dollar is up over 15% against the Euro, up almost 15% against the Pound, up about 45% against the Yen, up over 25% against Australian, dollar etc. etc. Do you blame Biden for the STRONG dollar?? Can you grasp what a mockery this strong dollar turns your inflation rants into?
- The minor inflation was turned into a make-believe big issue by anti-Biden and pro-Trump propaganda. Were you part of the solution? Or just another part of the problem?
- All else equal, if prices go up 10% and wages go up 10% that's a standoff. Yes, I know that you know this much, and will complain that "All else is NOT equal." BUT your persistent but confused focus on this single economic indicator, as though a 5% inflation meant the destruction of 5% of real value, shows that you DO place too much emphasis on this one indicator.
- The Stock market boomed ferociously under Biden, yielding much MUCH more than the inflation rate. Yes, yes, we understand that "exuberance" was involved, but stock market boom would NOT have happened if the inflation had a severe adverse effect on businesses or consumers.
- During Biden's term the yield on Aaa Corporate bonds barely and only briefly went above 5%. Again, this is a sign of a HEALTHY economy. Had inflation been low, but one of these arguably more important indicators been bad you'd have ranted about that and ignored the low inflation.
- Financial crises, whether due to inflation, deflation, unemployment or illiquidity have been common for centuries, especially under Republican administrations. The crisis of 2008 was the worst financial crisis of our lifetimes; it can be blamed on right-wing deregulation and the over-rated partisan Fed Chief Greenspan. The pandemic-caused inflation of 2022 was a rarity -- financial difficulty caused by something other than financial malfeasance! Yet you seem to think that THIS was the government-made crisis, blaming Biden and "Sgt. Sandy." What a joke!
- Over the relevant 3½ years the TOTAL price rise was about 16%, compared with about 8% that would have been normal with no virus. Whoopieeee! The way you rant about this small inflation -- almost trivially small in the scheme of things -- shows either a poor understanding of macroeconomics or a fixation on bad-mouthing your anti-heroes, Biden and Sgt. Sandy.
- Myself and others have linked to article after article written by expert economists explaining the reasons for the recent inflation. Reasons distinct from your prejudiced explanation. Yet you continue to place the blame elsewhere! Over and over and over! Where did you get your PhD in economics, @Derec ?
- Mild inflations -- like the "Biden inflation" you rant about -- can provide benefits to businesses! I've been around the block enough to know that many organizations have useless employees they'd like to terminate, but can't do so easily. With inflation it's easy for employers to offer chunky merit raises to valued employees, while saying "Sorry" to the less deserving.
Well, I hope this helps. But, to mix metaphors slightly, I offer food for thought but can't force a horse to drink!
