Biden flirts with inflation denial ahead of midterm elections
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President Joe Biden is minimizing inflation in a way that could become a problem in the midterm elections as consumer prices remain stubbornly high.
Biden’s latest efforts to wave away inflation come on the heels of a White House party, complete with a musical performance by legendary boomer singer-songwriter James Taylor, celebrating a new law with “inflation” in the title on the same day the announcement of an 8.3% August inflation rate sent stock markets tumbling.
The president insisted inflation was up “hardly at all” from the previous months when asked about the consumer price index for August during a rare interview with 60 Minutes.
Biden said inflation has “been basically even” month over month.
“Mr. President, as you know, last Tuesday, the annual inflation rate came in at 8.3%. The stock market nosedived. People are shocked by their grocery bills. What can you do better and faster?” CBS’s Scott Pelley asked.
“Well, first of all, let’s put this in perspective. Inflation rate month to month was just an inch, hardly at all,” Biden replied.
Biden has tried to emphasize the monthly numbers because they are more favorable, although most of his prepared remarks on inflation state there is more work to be done. He described “zero inflation” the previous month and cited a 0.1% price hike in August.
The president has also tried to put the focus on energy prices, especially gasoline at the pump, because they have seen some of the fastest declines, even though they remain higher than when he took office. He has been relatively quiet about high grocery bills, which are at least as important to ordinary consumers.
But there is a reason inflation tends to be measured at an annualized rate. And the economic reality is that prices may have stabilized, but at a rate much higher than ordinary Americans are used to. We have also seen months of stagnant inflation-adjusted wage growth, fueling negative perceptions of the economy that have not rebounded as much as Biden’s overall job approval ratings.
Biden remains underwater on both the economy and overall job approval just 50 days out from the midterm elections, in which Democrats are defending small congressional majorities.
There was also a risk that Biden would exaggerate the degree to which improvements in the data reflected a significant enhancement of voters’ living standards. Thirty years ago, Democrats won an election running against a sluggish economy even though the recession had ended in March 1991 — before Bill Clinton, the party’s Biden-endorsed presidential nominee, had even declared his candidacy.
Voter perceptions are often a lagging indicator behind macroeconomic data, and prices can remain stubbornly high even as inflation crests.
Another risk of inflation continuing to run at a four-decade high, as Pelley pointed out to Biden on 60 Minutes, is that the Federal Reserve could push the economy into recession to get the inflationary spike under control.
Biden has also been adamant that the economy is not in recession, citing jobs data that were generally positive all the way back when his economic approval ratings first began to tank.
Some of Biden’s recent comments about inflation come perilously close to denial about the problem, which runs the risk of making him appear out of touch to voters as Democrats defend their congressional seats.
It’s a far cry from over the summer, when Biden declared inflation his top domestic policy priority.
“The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down,” Biden wrote in a Wall Street Journal op-ed. He conceded the pace of job growth may slow as a result of inflation-fighting measures.
“Americans are anxious. I know that feeling,” Biden added. “I grew up in a family where it mattered when the price of gas or groceries rose.”
Biden has been touting what his spending bills will do to alleviate high costs of prescription drugs and other things. That was a major theme of his Inflation Reduction Act event on the day the consumer price index numbers were released.
At the same time, he has been consistently wrong about his inflation predictions and unwilling to acknowledge any significant relationship between high spending and inflation.
Economists have expressed concern about the possible inflationary effects of the student loan debt forgiveness plan. Many dispute the Inflation Reduction Act will do anything to lower inflation, especially in the short term, and polls show much of the general public expects the law to make it worse.
CLICK HERE TO READ MORE IN THE WASHINGTON EXAMINER
Polls consistently show inflation a top voter concern ahead of the midterm elections, though Biden and Democrats have been trying to shift the focus to other issues, such as abortion or former President Donald Trump.
In the 60 Minutes interview, Biden also appeared uncertain about whether he will run for reelection, forced the White House to clean up after him on Taiwan once again, and was more opinionated about Trump’s handling of classified documents than the administration line has suggested.
Biden flirts with inflation denial ahead of midterm elections
by W. James Antle III, Politics Editor |
President Joe Biden is minimizing inflation in a way that could become a problem in the midterm elections as consumer prices remain stubbornly high.
Biden’s latest efforts to wave away inflation come on the heels of a White House party, complete with a musical performance by legendary boomer singer-songwriter James Taylor, celebrating a new law with “inflation” in the title on the same day the announcement of an 8.3% August inflation rate sent stock markets tumbling.
The president insisted inflation was up “hardly at all” from the previous months when asked about the consumer price index for August during a rare interview with 60 Minutes.
Biden said inflation has “been basically even” month over month.
“Mr. President, as you know, last Tuesday, the annual inflation rate came in at 8.3%. The stock market nosedived. People are shocked by their grocery bills. What can you do better and faster?” CBS’s Scott Pelley asked.
“Well, first of all, let’s put this in perspective. Inflation rate month to month was just an inch, hardly at all,” Biden replied.
Biden has tried to emphasize the monthly numbers because they are more favorable, although most of his prepared remarks on inflation state there is more work to be done. He described “zero inflation” the previous month and cited a 0.1% price hike in August.
The president has also tried to put the focus on energy prices, especially gasoline at the pump, because they have seen some of the fastest declines, even though they remain higher than when he took office. He has been relatively quiet about high grocery bills, which are at least as important to ordinary consumers.
But there is a reason inflation tends to be measured at an annualized rate. And the economic reality is that prices may have stabilized, but at a rate much higher than ordinary Americans are used to. We have also seen months of stagnant inflation-adjusted wage growth, fueling negative perceptions of the economy that have not rebounded as much as Biden’s overall job approval ratings.
Biden remains underwater on both the economy and overall job approval just 50 days out from the midterm elections, in which Democrats are defending small congressional majorities.
There was also a risk that Biden would exaggerate the degree to which improvements in the data reflected a significant enhancement of voters’ living standards. Thirty years ago, Democrats won an election running against a sluggish economy even though the recession had ended in March 1991 — before Bill Clinton, the party’s Biden-endorsed presidential nominee, had even declared his candidacy.
Voter perceptions are often a lagging indicator behind macroeconomic data, and prices can remain stubbornly high even as inflation crests.
Another risk of inflation continuing to run at a four-decade high, as Pelley pointed out to Biden on 60 Minutes, is that the Federal Reserve could push the economy into recession to get the inflationary spike under control.
Biden has also been adamant that the economy is not in recession, citing jobs data that were generally positive all the way back when his economic approval ratings first began to tank.
Some of Biden’s recent comments about inflation come perilously close to denial about the problem, which runs the risk of making him appear out of touch to voters as Democrats defend their congressional seats.
It’s a far cry from over the summer, when Biden declared inflation his top domestic policy priority.
“The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down,” Biden wrote in a Wall Street Journal op-ed. He conceded the pace of job growth may slow as a result of inflation-fighting measures.
“Americans are anxious. I know that feeling,” Biden added. “I grew up in a family where it mattered when the price of gas or groceries rose.”
Biden has been touting what his spending bills will do to alleviate high costs of prescription drugs and other things. That was a major theme of his Inflation Reduction Act event on the day the consumer price index numbers were released.
At the same time, he has been consistently wrong about his inflation predictions and unwilling to acknowledge any significant relationship between high spending and inflation.
Economists have expressed concern about the possible inflationary effects of the student loan debt forgiveness plan. Many dispute the Inflation Reduction Act will do anything to lower inflation, especially in the short term, and polls show much of the general public expects the law to make it worse.
CLICK HERE TO READ MORE IN THE WASHINGTON EXAMINER
Polls consistently show inflation a top voter concern ahead of the midterm elections, though Biden and Democrats have been trying to shift the focus to other issues, such as abortion or former President Donald Trump.
In the 60 Minutes interview, Biden also appeared uncertain about whether he will run for reelection, forced the White House to clean up after him on Taiwan once again, and was more opinionated about Trump’s handling of classified documents than the administration line has suggested.
by W. James Antle III, Politics Editor |
September 19, 2022 02:53 PM
President Joe Biden is minimizing inflation in a way that could become a problem in the midterm elections as consumer prices remain stubbornly high.
Biden’s latest efforts to wave away inflation come on the heels of a White House party, complete with a musical performance by legendary boomer singer-songwriter James Taylor, celebrating a new law with “inflation” in the title on the same day the announcement of an 8.3% August inflation rate sent stock markets tumbling.
The president insisted inflation was up “hardly at all” from the previous months when asked about the consumer price index for August during a rare interview with 60 Minutes.
Biden said inflation has “been basically even” month over month.
“Mr. President, as you know, last Tuesday, the annual inflation rate came in at 8.3%. The stock market nosedived. People are shocked by their grocery bills. What can you do better and faster?” CBS’s Scott Pelley asked.
“Well, first of all, let’s put this in perspective. Inflation rate month to month was just an inch, hardly at all,” Biden replied.
Biden has tried to emphasize the monthly numbers because they are more favorable, although most of his prepared remarks on inflation state there is more work to be done. He described “zero inflation” the previous month and cited a 0.1% price hike in August.
The president has also tried to put the focus on energy prices, especially gasoline at the pump, because they have seen some of the fastest declines, even though they remain higher than when he took office. He has been relatively quiet about high grocery bills, which are at least as important to ordinary consumers.
But there is a reason inflation tends to be measured at an annualized rate. And the economic reality is that prices may have stabilized, but at a rate much higher than ordinary Americans are used to. We have also seen months of stagnant inflation-adjusted wage growth, fueling negative perceptions of the economy that have not rebounded as much as Biden’s overall job approval ratings.
Biden remains underwater on both the economy and overall job approval just 50 days out from the midterm elections, in which Democrats are defending small congressional majorities.
There was also a risk that Biden would exaggerate the degree to which improvements in the data reflected a significant enhancement of voters’ living standards. Thirty years ago, Democrats won an election running against a sluggish economy even though the recession had ended in March 1991 — before Bill Clinton, the party’s Biden-endorsed presidential nominee, had even declared his candidacy.
Voter perceptions are often a lagging indicator behind macroeconomic data, and prices can remain stubbornly high even as inflation crests.
Another risk of inflation continuing to run at a four-decade high, as Pelley pointed out to Biden on 60 Minutes, is that the Federal Reserve could push the economy into recession to get the inflationary spike under control.
Biden has also been adamant that the economy is not in recession, citing jobs data that were generally positive all the way back when his economic approval ratings first began to tank.
Some of Biden’s recent comments about inflation come perilously close to denial about the problem, which runs the risk of making him appear out of touch to voters as Democrats defend their congressional seats.
It’s a far cry from over the summer, when Biden declared inflation his top domestic policy priority.
“The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down,” Biden wrote in a Wall Street Journal op-ed. He conceded the pace of job growth may slow as a result of inflation-fighting measures.
“Americans are anxious. I know that feeling,” Biden added. “I grew up in a family where it mattered when the price of gas or groceries rose.”
Biden has been touting what his spending bills will do to alleviate high costs of prescription drugs and other things. That was a major theme of his Inflation Reduction Act event on the day the consumer price index numbers were released.
At the same time, he has been consistently wrong about his inflation predictions and unwilling to acknowledge any significant relationship between high spending and inflation.
Economists have expressed concern about the possible inflationary effects of the student loan debt forgiveness plan. Many dispute the Inflation Reduction Act will do anything to lower inflation, especially in the short term, and polls show much of the general public expects the law to make it worse.
CLICK HERE TO READ MORE IN THE WASHINGTON EXAMINER
Polls consistently show inflation a top voter concern ahead of the midterm elections, though Biden and Democrats have been trying to shift the focus to other issues, such as abortion or former President Donald Trump.
In the 60 Minutes interview, Biden also appeared uncertain about whether he will run for reelection, forced the White House to clean up after him on Taiwan once again, and was more opinionated about Trump’s handling of classified documents than the administration line has suggested.
