Why Biden's victory dance about falling inflation rings so phony
Joe Biden would have you think he's this ace inflation fighter, doing God's work out there for the little guy, to counter the dread Putin and Big Oil, who are busy whipping up inflation. On days when it isn't "transitory" of course.
Following the release of the Bureau of Labor Statistics's October CPI on Wednesday, which showed the CPI at 7.7% on the year, down from 8.2% last month, Biden crowed:
"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. My economic plan is showing results, and the American people can see that we are facing global economic challenges from a position of strength," the president wrote.
On Wednesday, Biden stayed firm on his economic platform while speaking to reporters about Democrats' strong results in the midterm elections, though during both his press conference and statement on Thursday he cautioned that "it will take time to get inflation back to normal levels," and extended olive branches to Congressional Republicans on the issue.
"I will work with anyone — Democrat or Republican — on ideas to provide more breathing room to middle-class and working families," he wrote Thursday morning. "I will oppose any effort to undo my agenda or to make inflation worse. We are on the right path — we need to keep moving forward to build an economy from the bottom up and the middle out."
Anyone with a brain knows that that supposed "progress" on the inflation Biden doesn't come close to matching their "lived experience." Food prices have risen so high for Thanksgiving dinner that it's actually cheaper to eat out now. Thanksgiving dinner is off the table for many families, credit cards are maxxed out, one out of five families now uses food banks, and in perfect summary of the tatterdemalion era of Joe Biden, last year we were introduced to something called Heinz Christmas dinner in a can. Combine this monster with 3.7% annual losses in falling wages and consumers are hit from two sides.
Progress on inflation?
It just keeps getting worse -- and the Wall Street Journal's lead editorial on the matter, says it will get worse. They note for starters that the 7.7% rate that Biden is touting as progress is "still unusually high." The Fed, after all, says it's still shooting for inflation at 2%, same as it was during the Trump era -- so it's got a way to go. Prices are down in a few areas, such as the falling housing market based on the Federal Reserve's rate hike reaction to inflation -- because so many young people can no longer afford to buy houses or fill them with appliances. Sound like a solution? Services, on the other hand, rose 0.5% on the month. "At this rate it will take a long time for households to recover the purchasing power they've lost during this inflationary bout, even if the inflation rate moderates," the Journal wrote. Making matters worse, Biden refuses to conduct countermeasures he could do, (beyond turning the government spending spigot off) such as fostering investment in the private sector to create economic growth. That leaves just rate hikes to get rid of the inflation plague and that's all we've got.
TIPP Insights, which is affiliated with the top pollster TIPP, has a solution for that unsettling sense about Biden's "progress" on inflation, given that he doesn't understand anything about how it's the result of his trillions in government spending, let alone know a thing about what the average American sees at the gas station, in the medical bill, at the real estate agent's office, or at the grocery store.
They've creating a newer, more useful index for the rise in prices, based on the same data that the BLS releases, which shows the extent to which Joe Biden's "I did that" did what it did.
According to TIPP:
The corporate media celebrated the past week with headlines such as "U.S. Inflation Slows More Than Forecast, Gives Fed Downshift Room" and "Price Pressures Show Signs of Cooling."
True, the Consumer Price Index (CPI) released by the government last Thursday showed a 7.7% year-over-year price increase from October 2021 to October 2022, edging down from a rate of 8.2% in September. The CPI has declined steadily from a 40-year high of 9.1% in June to 7.7% in September.
Intriguingly, no media outlet bothered to inform its readers or viewers that the prices have increased by 13.3% under President Biden's watch between February 2021 and October 2022.
The simple calculations don't need a rocket scientist. But no one is curious to make that. The mainstream media would rather play defense for the White House and pretend that its policies are working.
it makes sense to index inflation to the beginning of the Biden era, because that's when the disaster started to happen. That's when Biden started spending his trillions on various stimulus packages and people started feeling the inflation impact -- and when it became obvious that this wasn't transitory in the least.
Looked at with the beginning of the Biden era as a benchmark, it shows the extent to which Joe Biden has failed at his basic task of not debasing the currency by printing up a storm of money to devalue it, throwing too much money after too few goods, with the net result inflation.
TIPP found that the rate actually went up, to 13.3% in October, higher than the 12.8% seen in September.
Biden just can't stop spending and inflating. So while Biden gaslights and the press fawns over Joe's so-called progress on inflation, the numbers that Americans know from their baseline experience, are made sense of, for once, by TIPP. This is a very useful measurement that the mainstream media should have thought up earlier. It's good that TIPP did.
Image: Monica Showalter