{"id":1531580,"date":"2022-06-28T17:49:06","date_gmt":"2022-06-28T21:49:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1531580"},"modified":"2022-06-28T17:49:19","modified_gmt":"2022-06-28T21:49:19","slug":"bidenomics-how-inflation-got-out-of-control","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenomics-how-inflation-got-out-of-control\/","title":{"rendered":"Bidenomics: How Inflation Got Out Of Control"},"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\">14<\/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%2Fbidenomics-how-inflation-got-out-of-control%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=1531580&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>The COVID pandemic and the lockdown-induced recession did a number on American businesses and families. More than two years since the crisis began, the economy still seems to be on its last leg \u2014 even amid President Joe Biden\u2019s lofty plan to \u201cBuild Back Better.\u201d In a four-part series, The Daily Wire chronicles the \u201cBidenomics\u201d regime and how it is eviscerating the American people.<\/p>\n<p>From sea to shining sea, pay a visit to any grocery store or gas station and the story will be the same: Inflation is gut-punching American families who are trying to make ends meet.<\/p>\n<p>Inflation \u2014 the rate at which price levels rise \u2014 was relatively stable for the past four decades. Especially in the 2010s, inflation <a href=\"https:\/\/fred.stlouisfed.org\/series\/CPIAUCSL\">remained at or below<\/a> the Federal Reserve\u2019s targeted 2% annual increase.\u00a0<\/p>\n<p>But that all began to change when President Joe Biden assumed office.\u00a0<\/p>\n<p>In less than two years, inflation faced by consumers has <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/cpi.pdf\">soared<\/a> from 1.4% to 8.6% \u2014 the <a href=\"https:\/\/www.dailywire.com\/news\/here-are-the-products-gutting-your-bank-account-as-inflation-soars\">highest levels<\/a> seen since the beginning of the Reagan administration. As of <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/cpi.pdf\">May 2022<\/a>, the price of gasoline was up nearly 49%; the price of meat, poultry and fish was up 14.2%; and the price of used cars was up 16%.<\/p>\n<p>Meanwhile, costs faced by businesses are <a href=\"https:\/\/www.dailywire.com\/news\/inflation-for-businesses-continues-at-double-digit-pace\">skyrocketing at double-digit rates<\/a>, driving many executives to <a href=\"https:\/\/www.dailywire.com\/news\/new-survey-reveals-when-ceos-expect-a-recession-to-hit\">sound the alarm<\/a> over a coming recession. Likewise, consumer confidence \u2014 one of the most important metrics in the United States\u2019 consumption-driven economy \u2014 has <a href=\"https:\/\/fred.stlouisfed.org\/series\/UMCSENT\">plummeted<\/a> over the course of the Biden era.\u00a0<\/p>\n<p><a href=\"https:\/\/harvardharrispoll.com\/wp-content\/uploads\/2022\/05\/HHP_May2022_KeyResults.pdf\">Polls<\/a> show that <a href=\"https:\/\/www.dailywire.com\/news\/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious\">95%<\/a> of Americans believe inflation is \u201cvery serious\u201d or \u201csomewhat serious,\u201d that <a href=\"https:\/\/www.dailywire.com\/news\/94-percent-of-americans-concerned-about-inflation-overwhelmingly-trust-republicans-to-handle-it-poll\">94%<\/a> are \u201cupset\u201d or \u201cconcerned\u201d about the impact of rising prices and that <a href=\"https:\/\/www.dailywire.com\/news\/70-disapprove-of-bidens-handling-of-gas-prices-inflation-poll\">70%<\/a> disapprove of Biden\u2019s management of the inflation crisis.<\/p>\n<p>But is Biden really responsible for high inflation? To a large extent, yes \u2014 and more importantly, he has neither owned up to his mistake nor made efforts to meaningfully combat higher prices.<\/p>\n<p>At the outset of his administration, President Biden <a href=\"https:\/\/www.dailywire.com\/news\/bidens-covid-relief-plan-where-is-the-money-actually-going\">signed<\/a> the American Rescue Plan \u2014 a $1.9 trillion stimulus package that included $1,400 relief payments for those who met the qualifications, $350 billion for state and local governments and an extension of enhanced federal unemployment insurance. Next to President Donald Trump\u2019s $2.2 trillion CARES Act, the American Rescue Plan was one of the largest federal spending measures in American history.<\/p>\n<p>The timing of the American Rescue Plan contributed to its inflationary impact. Because the CARES Act was enacted at the worst part of the recession, it had a significant role in stemming the decline in economic output. The American Rescue Plan came as the United States economy <a href=\"https:\/\/www.dailywire.com\/news\/comparing-trump-and-bidens-covid-relief-bills\">had already been rebounding<\/a> for several months \u2014 meaning that the additional spending was largely unnecessary and, in many respects, threw a wrench into the recovery.<\/p>\n<p>David Bahnsen, founder of Manhattan-based wealth management firm The Bahnsen Group, told The Daily Wire that \u201csupply-side\u201d considerations have played the largest role in worsening inflation by providing \u201ca massive incentive for workers to not work.\u201d The American Rescue Plan, according to Bahnsen, has exacerbated the more significant problem of global supply chains struggling to keep up with surging demand following the recession.<\/p>\n<p>\u201cThis was the last thing the supply chain needed, and it was the last thing the food and beverage industry needed,\u201d Bahnsen said. \u201cThat element alone \u2014 federal subsidy of unemployment regardless of means testing all the way through the fall \u2014 was a fiscal disaster.\u201d<\/p>\n<p>Indeed, economists Harry Holzer, Glenn Hubbard and Michael Strain <a href=\"https:\/\/www.dailywire.com\/news\/surprise-enhanced-unemployment-benefits-significantly-increased-unemployment-study\">said in a recent paper<\/a> that states which prematurely nixed the enhanced unemployment benefits saw \u201cthe flow of unemployed workers into employment increase by around two-thirds.\u201d<\/p>\n<p>Bahnsen observed that the loose monetary policy pursued by the Fed since the recession has primarily impacted inflation in sectors such as housing. \u201cLow interest rates have boosted asset inflation, which is different from the cost of goods and services,\u201d he remarked. \u201cI believe the Fed needs to normalize interest rates to stop the exacerbation of malinvestment and capital misallocation, but I question what higher interest rates will mean for inflation.\u201d<\/p>\n<p>The Fed <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">hiked interest rates<\/a> by 0.75% in June \u2014 marking the largest increment since 1994. The central bank had already <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">increased rates<\/a> by 0.5% in May \u2014 the largest such increase since 2000 \u2014 after a 0.25% rate hike from near-zero levels in March. To <a href=\"https:\/\/www.dailywire.com\/news\/inflation-is-the-key-political-problem-biden-powell-meet-to-discuss-taming-high-prices\">signal that the administration is serious<\/a> about combating inflation, President Biden and Treasury Secretary Janet Yellen met with Fed Chair Jerome Powell to show support for the higher interest rate regime.<\/p>\n<p>Russ Vought, who directed the U.S. Office of Management and Budget under the Trump administration, diagnosed the problem as the White House being \u201clargely controlled by ideologues.\u201d<\/p>\n<p>\u201cWith inflation over 8% today, if given a multitrillion-dollar \u2018Build Back Better\u2019 bill, Biden would sign it,\u201d Vought explained. \u201cI can\u2019t tell you whether the President is largely personally disconnected from the American people or not,<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The COVID pandemic and the lockdown-induced recession did a number on American businesses and families. More than two years since the crisis began, the economy still seems to be on its last leg \u2014 even amid President Joe Biden\u2019s lofty plan to \u201cBuild Back Better.\u201d In a four-part series, The Daily Wire chronicles the \u201cBidenomics\u201d &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1531628,"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-1531580","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\/1531580","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=1531580"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1531580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1531628"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1531580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1531580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1531580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}