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Left-Leaning Vox: Biden’s Failed So-Called Stimulus “Worsened Inflation. The Question Is How Much.”

May 13, 2022

Now that the Biden Administration is scrambling to come up with solutions for the inflation problem it caused, even the left-leaning Vox is covering the crisis, citing experts who admit that Democrats’ $2 trillion so-called stimulus botched the recovery and made inflation worse. Here are a few excerpts:

  • “High inflation is now here, and the worse and more persistent inflation is, the more likely it is that the Fed will raise rates to get it under control, and cause a recession.”
  • “International comparisons, though, suggest the US would have bounced back without the American Rescue Plan, though more slowly.”
  • “Inflation has brought with it two big problems. The first is already evident: Because most Americans’ wages haven’t risen enough to keep up with it, real (inflation-adjusted) wages have been declining at the highest rate in four decades.”
  • “The second problem is, if inflation remains so persistent, what reining it in could entail. The Federal Reserve has started raising interest rates in an effort to cool down the economy… But if demand and investment end up plummeting in response, the US could face a painful recession.”

Vox concludes: “Now, Democrats had many good intentions in drafting the American Rescue Plan — they wanted to help people and avert economic pain. And they had some successes, like low unemployment and strong GDP growth. But wages haven’t kept up with prices. And if this results in significantly worse economic problems in 2022, 2023, and 2024, not to mention electoral consequences for Democrats, it’s unclear whether it would have been worth it.”

Click here to read the full article on Vox

As Andy Puzder writes, this is obvious, but President Biden is as out of touch as ever. 

  • “The $1.9 trillion spending bonanza or so-called ‘Covid Relief’ bill Democrats passed last March ignited the inflation a majority of Americans now cite as a ‘hardship.’ This is not something that’s seriously disputed outside of the White House.”
  • “Clinton/Obama economist Larry Summers called it the ‘least responsible’ economic policy in 40 years and former Obama economic advisor Steven Rattner called it ‘the original sin.’ Even Biden’s Secretary of the Treasury Janet Yellen recently said: ‘So, look, inflation is a matter of demand and supply, and the spending that was undertaken in the American Rescue Plan did feed demand.'”
  • “Ultimately, only 9 percent of this so-called COVID relief spending went toward fighting COVID—while month after month, inflation continued to soar.”