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BIDEN BLAME GAME: Inflation Is Everyone Else’s Fault

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Joe Biden, the 47th vice president of the United States, was the featured guest for the Tom Johnson Lectureship at the LBJ Presidential Library on Tuesday, Oct. 3, 2017. The conversation was moderated by Mark Updegrove, former director of the LBJ Library.

You may have seen Joe Biden’s pathetic blame game tweet this week where he wrote “Let’s be absolutely clear about why prices are high right now: COVID and Vladimir Putin.”

Really? It doesn’t have anything to do with the Federal Reserve’s low rates or the federal government’s massive spending? It doesn’t have anything to do with Biden’s restrictions on oil and gas drilling and transportation?

Here’s Biden’s tweet in full:

Brad Palumbo, Policy Correspondent at the Foundation for Economic Education, writes of Biden’s blame game in Newsweek:

First things first: The Federal Reserve, America’s central bank, has printed trillions of new dollars out of thin air since the pandemic began. This was supposed to help the economy, but the only thing it really “stimulated” was inflation, because when more dollars chase the same amount of goods, prices inevitably rise.

While this is not in Biden’s direct control, President Biden has done nothing to urge the Federal Reserve to change courses. In fact, he just recently re-nominated Fed Chair Jerome Powell and praised his leadership—despite Powell having overseen this very disastrous outcome. And Biden’s other Fed nominees have been weak on this issue as well, meaning that while he didn’t cause it, he hasn’t helped.

Then there’s the unprecedented deficit spending. Here, too, the problem didn’t start on Biden’s watch; President Trump blew out the deficit and passed large spending bills in 2020 after the pandemic hit, including the first set of stimulus checks. But while that’s undoubtedly playing a role in today’s inflation, it was also at the very peak of the COVID-19 emergency and is more understandable than what came next.

President Biden came into office with our understanding of the pandemic much more complete, vaccines already available, and a recovering economy. He nonetheless decided to ram through an utterly unnecessary $1.9 trillion spending bill, only 9 percent of which was directly related to mitigating COVID-19’s health effects. Biden pushed this spending even as economists from his own party, people like Larry Summers, warned this would cause an inflation surge.

It was an unforced error that drove the deficit up to $2.8 trillion, its second-highest level ever and second only to 2020, the very height of the emergency. Now, even liberal economists and pundits are acknowledging that the so-called American Rescue Plan was an “extraordinary policy mistake,” as one ex-Obama official recently put it in a New York Times Op-Ed.

On top of all of this, Biden has contributed to high prices with burdensome government policies in other areas. From the many Trump-era tariffs Biden could have repealed by now that raise the cost of goods for consumers to his anti-energy policies restricting fuel production and more, the President has made things worse, not better.

So while it’s true that inflation is a complex economic phenomenon not entirely within any one president’s control, Biden continues to deflect blame for inflation onto baseless scapegoats rather than take accountability for his own unforced policy errors.

It’s a disgraceful dereliction of duty—and the American people shouldn’t stand for it, not least because it means inflation won’t be mitigated.

Action Line: Your family needs a plan to fight inflation, and unlike Joe Biden, you can’t put that responsibility on anyone else. But you can get help. If you need a plan to invest with inflation in mind, I can help you. Get in touch and let’s get to work.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com