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’
On July 13, Bitcoin.com News reported on the June CPI report which noted that inflation metrics this month reflected a 9.1% year-over-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 The White House then noted that the CPI report was already out of date the day the Bureau of Labor published the data.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. As the incumbent president came under fire for inflation, on July 15, Senior White House Correspondent Alexander Nazaryan pointed out in an op-ed that inflation had become “Biden’s political nightmare.”
Inflation has soared so high that American economist and Nobel laureate Paul Krugman wrote an article for The New York Times noting that he was “wrong about inflation”. Krugman spoke specifically about the US bailout and he mentioned that some economists had warned that it 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, a former economic adviser to ex-President Barack Obama. Summers recently spoke about a recession at the Aspen Security Forum. Summers explained that “the odds are probably better than half that a recession will start 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 told 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 for nationalreview.com discussed Biden’s apology and a “new all-time low for economic communications.”
“Biden even claims 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 summarize “the Biden administration’s most economically significant disappointments.”
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 was worse everywhere but 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 fault Biden for stating that American families are less in debt and savings have grown under his administration and how Biden noted that he was doing everything he could to bring down the price of oil. essence.
“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. Yet the US President is currently in isolation for contracting the disease after taking all recommended vaccines and boosters.
Additionally, a report 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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