The opposition party is rooting for failure and waiting like vultures for the country to crumble. It doesn’t matter who the successor was, they were going to be the target of their frustration of losing the White House. Don’t expect a Camp David summit meeting of the minds before 2024.
Over the weekend I watched a lot of economists discuss inflation. They all agreed that a little inflation was expected since the world was coming out of COVID at the same time demanding the same goods at a reasonable price. No one expected the United States to be dealing with 8.3% inflation.
The blame game evolved where reasonable people cannot deny that the Fed was fooled by the great jobs number and consumer spending numbers causing them to delay raising interest rates to cool things down. The growing stock market also gave them the reason for a pause. Biden’s $1.3 trillion stimuli may have pumped too much money into the hands of consumers, who were already spending too much.
I heard the Yale economists dismiss the gouging argument by saying “the way to stop high prices is high prices.” He explained that the gouging helped the shelves stay full until the supply chain became unclogged.
COVID, the overwhelmed supply chain, high gas prices, and the Russian war with Ukraine were the main drivers of inflation and still are.
I’m glad the administration is making inflation the number one priority but who knows what’s on the horizon.
The administration and the Fed are gambling over the strategy. Joe Biden wants to get rid of the tariffs that Trump placed on China. Economists say those tariffs were taxes on consumers. Eliminating those tariffs could shave 1.3% off inflation but it would give a reason for his political opponents to paint the Dems as weak on China. It would take 6 to 15 months for it to make an impact. Those tariffs are a favorite of the trade unions because it keeps them competitive with China.
The administration wants to go after price gouging but that’s going to look like a political gimmick and it really won’t have much of an impact. It’s more of a pacifier for those who think corporate greed is the main problem.
The Federal Reserve is going to have the lead as it did in the 2008 financial crisis. Unlike 2008, they’ll only have one political party to work with because the GOP has no interest in trying to relieve the stress the Biden Administration is under, even if America suffers.
The blood was pumping this weekend after hearing ideas from both sides. I missed those discussions.
There was no denying Joe Biden was dealt a bad hand by his predecessor and received little or no help from the opposing party but he still got a bipartisan badly needed infrastructure bill passed that will be greatly appreciated once we get back on our feet.
After the Afghanistan withdrawal fiasco, President Biden still managed to form a NATO alliance to deter Russia from completely annihilating Ukraine.
I’m not a political prognosticator but as an amateur observer, I don’t see Biden’s approval numbers anywhere at the 50% mark because high inflation will not disappear by November. Republicans have historical trends and a bad economy to run on but no solutions. I think they are going to trip and fall because as always, their fringe candidates will make biologically stupid remarks concerning abortion. They will overreach again. They will “snatch defeat from the jaws of victory.”
Have you noticed that the current conservatives want a FEMA-like solution for private sector mistakes? They are making me remember the 2008 financial crisis where the private sector wanted to “privatize the gains and socialize the losses.”
As the great Barrack Obama used to tell us “Don’t boo…vote.”