{"id":1702404,"date":"2022-10-19T12:06:48","date_gmt":"2022-10-19T16:06:48","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1702404"},"modified":"2022-10-19T12:18:34","modified_gmt":"2022-10-19T16:18:34","slug":"democrat-rep-porter-goes-viral-with-economically-illiterate-rant-on-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrat-rep-porter-goes-viral-with-economically-illiterate-rant-on-inflation\/","title":{"rendered":"Democrat Rep. Porter Goes Viral With Economically Illiterate Rant on 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\">22<\/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%2Fdemocrat-rep-porter-goes-viral-with-economically-illiterate-rant-on-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=1702404&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> Katie Porter inflation rant goes viral, but it&#8217;s totally wrong                                                          <\/p>\n<p>Welcome!Register for an account<\/p>\n<p>    <a href=\"https:\/\/www.based-politics.com\/2022\/10\/19\/democratic-congresswoman-katie-porters-inflation-rate-goes-viral-but-its-totally-wrong\/#\" aria-label=\"Back\" class=\"td-back-button\"><\/a> <\/p>\n<p>Password recovery<\/p>\n<p>It\u2019s toddler-level economics. <\/p>\n<p>        <a class=\"tdb-author-photo\" href=\"https:\/\/www.based-politics.com\/author\/brad-polumbo\/\" title=\"Brad Polumbo\"><\/a> <\/p>\n<p>October 19, 2022<\/p>\n<p>On Tuesday, Rep. Katie Porter, a California Democrat, received millions of views, endless online praise, and sycophantic progressive media coverage for her \u201ctakedown\u201d of Big Business as the true culprit behind inflation on the House floor. There\u2019s just one problem: almost everything she said was wrong.\u00a0<\/p>\n<p>Still, you\u2019ve gotta give the congresswoman points for presentation. Armed with a blown-up bar chart, she claimed that \u201cover half the increased prices people are paying are coming from increases in corporate profits.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Bigger corporate profits account for *over half* of the higher prices people are paying. <a href=\"https:\/\/t.co\/RZr5O0X4oJ\" class=\"stylish-link\">pic.twitter.com\/RZr5O0X4oJ<\/a><\/p>\n<p>\u2014 Rep. Katie Porter (@RepKatiePorter) <a href=\"https:\/\/twitter.com\/RepKatiePorter\/status\/1582475617723113472?ref_src=twsrc%5Etfw\" class=\"stylish-link\">October 18, 2022<\/a><\/p>\n<p>If this sounds far-fetched, well, that\u2019s because it is. This argument is both empirically untrue and obviously false in its very premises.\u00a0<\/p>\n<p>Firstly, the input costs facing businesses have actually increased significantly more than consumer prices. Just consider the below <a href=\"https:\/\/fred.stlouisfed.org\/graph\/?g=QA2c\" class=\"stylish-link\">graph<\/a>.\u00a0<\/p>\n<\/p>\n<p>The red line is the Producer Price Index (PPI), which estimates the average input costs businesses are experiencing. Meanwhile, the blue line is the Consumer Price Index (CPI), which is an estimate of <a href=\"https:\/\/www.based-politics.com\/2022\/10\/13\/september-cpi-inflation-continues-to-run-hot-at-8-2-annually\/\" class=\"stylish-link\">average consumer prices<\/a>. Both have increased sharply since January 2021 (hmm, what else happened that month?), yet the PPI has actually increased more than the CPI. If businesses were truly engaging in rampant \u201cprice-gouging,\u201d we would expect the opposite to be true.\u00a0<\/p>\n<p>Yes, corporate profits have nominally risen, but that\u2019s in the same way that government tax receipts have also risen\u2014when the dollar value of everything goes up, so too would profits and tax receipts.<\/p>\n<p>It\u2019s also just obviously illogical to argue that \u201ccorporate greed\u201d is what\u2019s driving inflation. Such economically illiterate mental gymnastics require one to believe that corporations went from being generous and benevolent in 2020 to mean and greedy in 2021. And, we\u2019d have to believe another falsity, that corporations in some sectors where prices are higher are just meaner and greedier than those in other sectors where prices haven\u2019t risen as much.<\/p>\n<p>It\u2019s toddler-level economics.\u00a0<\/p>\n<p>You don\u2019t have to take my word for it that this progressive narrative is hogwash. A survey of top economists, weighted for confidence, found that <a href=\"https:\/\/www.based-politics.com\/2022\/01\/28\/80-percent-of-top-economists-disagree-with-democrats-inflation-narrative-new-survey\/\" class=\"stylish-link\">80% don\u2019t think corporate greed is a significant factor<\/a> contributing to our ongoing inflation crisis.\u00a0<\/p>\n<p>The real culprits, as we all know, are runaway <a href=\"https:\/\/www.based-politics.com\/2022\/02\/10\/inflation-surged-7-5-in-january-heres-why\/\" class=\"stylish-link\">government spending<\/a> and money printing. Viral stump speeches, blown-up charts, and all the handwaving in the world<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Katie Porter inflation rant goes viral, but it&#8217;s totally wrong Welcome!Register for an account Password recovery It\u2019s toddler-level economics. October 19, 2022 On Tuesday, Rep. Katie Porter, a California Democrat, received millions of views, endless online praise, and sycophantic progressive media coverage for her \u201ctakedown\u201d of Big Business as the true culprit behind inflation on &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1898290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1702404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1702404","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1702404"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1702404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1898290"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1702404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1702404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1702404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}