Biden’s explanation for inflation: People keep buying things!
Biden’s plan to stop inflation: Wait for people to run out of money, then prices will go down.
Biden’s challenge is that he can highlight how consumer demand for goods is driving much of the inflation problem. But getting consumers to change their behavior is a lot harder.
“How do you change economic reality? You don’t,” Naroff said. “If you tell people ‘stop buying,’ they’re going to give you the single-finger wave. There’s nothing the guy can do about it. But it is a political problem for him.”https://www.politico.com/news/2021/11/18/biden-inflation-war-human-behavior-522891
Does Biden know that personal saving is back to pre-Covid levels? I am not sure where all the supposed excess spending is coming from. According to Politico, the problem is spending too much on consumer goods and not enough on services. Hmm, seems like the lockdowns triggered some online buying habits that are hard to break. That must mean that people are using credit cards or switching their spending from one category to another.
The topic you don’t hear much about is how the slow murder of the oil industry is affecting the economy. The forced ‘energy transition’ is the actual driver of this global inflation, in my humble opinion. You know, our addiction to oil.
Lower-income families have been hit hard by rising costs of necessities. And the middle-class is also feeling the effects of inflation and beginning to spend less on discretionary categories.
With as much as 60% of U.S. consumers living paycheck to paycheck, it’s not a surprise to see that the spending cutbacks have started. Even with a strong job market and wage gains, as well as Covid stimulus savings, pricing spikes in core spending categories including food, gas and shelter are leading more Americans to mind their pocketbooks closely.https://www.cnbc.com/2022/04/08/as-inflation-bites-higher-income-consumers-are-cutting-back-too.html
The problem has always been that Democrats, and many Republicans, do not understand or care about how real economics works and how their policies impact actual families. Flooding the market with money is not good economic policy for consumers, but it is great for getting votes in the short term.
“Hey Joe! Get back over here! Ukraine is not going to save you!”
As the mid-term elections get closer, things are not looking good for the Biden administration. “The 2022 United States elections will be held on Tuesday, November 8, 2022. During this midterm election year, all 435 seats in the House of Representatives and 35 of the 100 seats in the Senate will be contested.” Wikipedia
What do you think? How is inflation affecting your budget, daily life, and vote? Have your wages risen along with prices? Have you changed your driving habits because of the price of fuel?