Biden claims credit for inflation falling to 7.7%, omits inconvenient detail about who caused it
Inflation is down, and Joe Biden is claiming credit.
According to CNBC:
Inflation went down faster than expected in October, dropping to a year-over-year rate of 7.7%, according to new Labor Bureau data published Thursday morning.
Inflation is down from its 9.1% June year-over-year peak, but still nowhere near the Federal Reserve’s benchmark target rate of 2%.
And to no one's surprise, Joe Biden is taking a bow.
According to the New York Times:
Mr. Biden took quick credit for the slowdown in the Consumer Price Index on Thursday, saying in a statement that his policies are helping to cool price gains while acknowledging there could be more struggles ahead.
“Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation,” he said. “My economic plan is showing results, and the American people can see that we are facing global economic challenges from a position of strength.”
He added that “it will take time to get inflation back to normal levels — and we could see setbacks along the way — but we will keep at it and help families with the cost of living.”
Which is laughable.
Joe Biden had nothing to do with the drop in inflation, which still stands at 7.7%.
Inflation, according to free market economists, can only come down in one way: By having the Federal Reserve hike rates. The Fed has been hiking up a storm in the past few months, raising key interests rates a whopping total of seven times, with great big 75 basis point bites. At some point, the hikes have an effect, and that may well be now. That's because inflation is always and everywhere a monetary phenomenon, as Milton Friedman once said. When prices go up across the board due to inflation, there's too much money in the system chasing too few goods, forcing those selling the goods to raise the prices to mop up the excess money rolling around in the system with no productive use.
The decline in inflation is the Fed's doing, not Joe Biden's doing. The Federal Reserve is an independent entity. Biden may appoint the Federal Reserve chief, in the person of Jerome Powell, but once he's appointed, the Fed does what the Fed wants to do. Joe doesn't control it. The falling inflation seeing now is still grotesquely high, but it the fireman that's puting the fire out is the Fed.
Who was the arsonist? That's right, Joe Biden, with his multiple multi-billion-dollar federal stimulus programs, which he hails as "accomplishments."
Those stimulus packages made the inflation. Joe Biden was behind those stimulus packages.
Now the Fed has done cleanup on Aisle 46.
Joe Biden is nevertheless claiming credit. This is like an arsonist claiming credit for the putting out of the house fire
Biden still has not a clue about where inflation comes from.
Image: Monica Showalter