{"id":1115619,"date":"2021-12-13T18:14:06","date_gmt":"2021-12-13T23:14:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115619"},"modified":"2021-12-13T18:14:08","modified_gmt":"2021-12-13T23:14:08","slug":"top-obama-economist-debunks-biden-talking-point-about-root-causes-of-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-obama-economist-debunks-biden-talking-point-about-root-causes-of-inflation\/","title":{"rendered":"Top Obama Economist Debunks Biden Talking Point About Root Causes of Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftop-obama-economist-debunks-biden-talking-point-about-root-causes-of-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115619&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A top Democratic economist castigated the Biden administration for its denial over the root causes of soaring inflation.<\/p>\n<p>On Friday, the Bureau of Labor Statistics <a href=\"https:\/\/www.dailywire.com\/news\/as-inflation-soars-americans-real-wages-decline\">announced<\/a> that the Consumer Price Index rose at a 6.8% rate last month \u2014 the largest year-over-year increase in the metric since June 1982, as well as the sixth straight month in which inflation has remained above 5%. Expenses such as used gasoline, food, vehicles, electricity, and apparel are witnessing significantly higher price levels.<\/p>\n<p>On Monday, Lawrence Summers \u2014 who worked as Treasury Secretary under the Clinton administration and National Economic Council director under the Obama administration \u2014 <a href=\"https:\/\/twitter.com\/LHSummers\/status\/1470395480056250370\">explained<\/a> on social media that he \u201ccannot understand\u201d why White House officials \u201ccling to the idea that inflation is caused by bottlenecks\u201d and \u201cwill soon recede to normal levels.\u201d<\/p>\n<p>In November, for example, White House Press Secretary Jen Psaki <a href=\"https:\/\/www.dailywire.com\/news\/psaki-says-inflation-is-being-used-as-a-political-cudgel\">argued<\/a> that \u201ceveryone from the Federal Reserve to Wall Street\u201d foresees a deceleration in inflation next year. Weeks earlier, Transportation Secretary Pete Buttigieg <a href=\"https:\/\/www.dailywire.com\/news\/buttigieg-supply-chain-clog-happening-in-part-because-biden-has-successfully-guided-this-economy\">said<\/a> that the overstimulated economy and supply chain bottlenecks are linked to Biden\u2019s successful policies. Meanwhile, Treasury Secretary Janet Yellen <a href=\"https:\/\/www.dailywire.com\/news\/yellen-touts-biden-spending-plan-then-promises-inflation-wont-reach-1970s-levels\">claimed<\/a> that the Build Back Better Act will \u201cease inflationary pressure.\u201d<\/p>\n<p>Summers also called it a \u201clong shot\u201d to believe that inflation will soon revert to \u201clevels anywhere near\u201d the Federal Reserve\u2019s targets.<\/p>\n<p>According to Summers, housing prices have increased by as much as 20% since last year \u2014 leading to a true inflation rate in the double digits. \u201cEither the official indices are just wrong or more likely 3 to 4 points of inflation from housing are coming in 2022, even if there is no further increase in rents or home prices,\u201d he explained. \u201cThis effect far exceeds any benefit from lower energy or used car prices.\u201d<\/p>\n<p>Summers therefore sees no immediate end in sight for high price levels.<\/p>\n<p>\u201cGiven housing prices and tightening labor markets, there is no compelling reason to expect major deceleration in inflation,\u201d he repeated. \u201cBut, even if inflation subsided to .2 percent a month, the annualized inflation rate would be 6.5% in March 5.1% in June and 4.0% before the election in September.\u201d<\/p>\n<p>\u201cMy guess is barring a major recessionary or financial shock next fall, headline inflation will round to 5 percent,\u201d Summers deduced. \u201cWe are beyond where the Vietnam inflation took us but still have plenty of time to stop a late 1970s situation from developing, if we have the will.\u201d<\/p>\n<p>In comments made during a recent CNN interview, Summers <a href=\"https:\/\/www.dailywire.com\/news\/top-obama-economist-quite-unlikely-that-inflation-will-recede-back-to-its-normal-rate\">predicted<\/a> that the United States is poised to witness \u201cinflation of a kind we haven\u2019t seen in 30 years\u201d unless the Federal Reserve tapers its monetary stimulus.<\/p>\n<p>\u201cI think it\u2019s possible but quite unlikely that inflation will recede back to its normal 2 percent level without some significant change in the path \u2026 we\u2019re now on,\u201d he said. \u201cI think the Fed has made a significant mistake in the approach that it\u2019s taking by doubling down on the massive fiscal stimulus we had at the beginning of the year with really easy monetary policy.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A top Democratic economist castigated the Biden administration for its denial over the root causes of soaring inflation.On Friday, the Bureau of Labor Statistics announced that the Consumer Price Index rose at a 6.8% rate last month \u2014 the largest year-over-year increase in the metric since June 1982, as well as the sixth straight month in which inflation has remained above 5%. Expenses such as used gasoline, food, vehicles, electricity, and apparel are witnessing significantly higher price levels.On Monday, Lawrence Summers \u2014 who worked as Treasury Secretary under the Clinton administration and National Economic Council director under the Obama administration \u2014 explained on social media that he \u201ccannot understand\u201d why White House officials \u201ccling to the idea that inflation is caused by bottlenecks\u201d and \u201cwill soon recede to normal levels.\u201dIn November, for example, White House Press Secretary Jen Psaki argued that \u201ceveryone from the Federal Reserve to Wall Street\u201d foresees a deceleration in inflation next year. Weeks earlier, Transportation Secretary Pete Buttigieg said that the overstimulated economy and supply chain bottlenecks are linked to Biden\u2019s successful policies. Meanwhile, Treasury Secretary Janet Yellen claimed that the Build Back Better Act will \u201cease inflationary pressure.\u201dSummers also called it a \u201clong shot\u201d to believe that inflation will soon revert to \u201clevels anywhere near\u201d the Federal Reserve\u2019s targets.According to Summers, housing prices have increased by as much as 20% since last year \u2014 leading to a true inflation rate in the double digits. \u201cEither the official indices are just wrong or more likely 3 to 4 points of inflation from housing are coming in 2022, even if there is no further increase in rents or home prices,\u201d he explained. \u201cThis effect far exceeds any benefit from lower energy or used car prices.\u201dSummers therefore sees no immediate end in sight for high price levels.\u201cGiven housing prices and tightening labor markets, there is no compelling reason to expect major deceleration in inflation,\u201d he repeated. \u201cBut, even if inflation subsided to .2 percent a month, the annualized inflation rate would be 6.5% in March 5.1% in June and 4.0% before the election in September.\u201d\u201cMy guess is barring a major recessionary or financial shock next fall, headline inflation will round to 5 percent,\u201d Summers deduced. \u201cWe are beyond where the Vietnam inflation took us but still have plenty of time to stop a late 1970s situation from developing, if we have the will.\u201dIn comments made during a recent CNN interview, Summers predicted that the United States is poised to witness \u201cinflation of a kind we haven\u2019t seen in 30 years\u201d unless the Federal Reserve tapers its monetary stimulus.\u201cI think it\u2019s possible but quite unlikely that inflation will recede back to its normal 2 percent level without some significant change in the path \u2026 we\u2019re now on,\u201d he said. \u201cI think the Fed has made a significant mistake in the approach that it\u2019s taking by doubling down on the massive fiscal stimulus we had at the beginning of the year with really easy monetary policy.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1115619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1115619"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1115619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1115619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1115619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}