Rising prices may be the Democrats’ undoing in midterms, so no wonder Joe Biden gets riled up when asked about it
US President Joe Biden got in trouble after inflicting a Fox News reporter in an insult on the Hot Mic. Peter Doocy was more amused then angry at the insult. “stupid SOB” By the Oval Office’s big man. And with most of the US media on the Democrats’ side, the president will hardly be branded an enemy of the free press over the incident, unlike his Republican predecessor.
An inquiry on inflation by Biden and whether it was considered a liability in the context of midterm elections triggered an aggressive reaction. “That’s a great asset, more inflation,” the president mused, before dunking on Doocy’s mental capacities.
This response demonstrated just how serious his party is about the rate of rise in consumer prices, which has been unprecedented for decades. According to Labor Department data the US consumer price index rose 7% in 2013, marking its largest twelve-month increase since June 1982.
Inflation: What’s the problem? Is it really inflation?
Inflation is a simple concept for consumers: You pay more to buy groceries and fill up your car with gas than the month before. Most likely, your wages don’t keep up. Sometimes you may feel frustrated or angry.
From a high vantage point, inflation can be seen as a complex process that has multiple causes. Many argue the current frenzy of inflation is due to the unique circumstances. The main factor is an increase in global energy consumption as the world recovers from the Covid-19 crisis. Prices are further driven up by some countries quitting fossil fuels, and addressing a lack of renewable energy. There is also the disruption in global supply chains as a result of the pandemic. It was exacerbated by the ‘right on demand’ logistics approach that major companies adopted in a drive to boost their profit margins.
Another aspect is corporate greed. Even with all of the difficulties the US has faced, big businesses enjoy record profits. Inflation is blamed on a lack competition by countries that champion the market economy, according to voters across all political lines.
How can the White House address it?
Biden has focused its energies on solving supply chain problems. White House permitted container-clogged ports 24 hours a days and reached out directly to retailers regarding their logistics problems. In addition, the White House promised that the infrastructure spending bill it passed in Congress would help curb inflation and supply problems. Also, measures were taken to improve the energy situation. US tapped into Strategic Petroleum Reserve, and is publicly urging OPEC members to improve their supply. Biden might also be able to scrap Trump’s tariffs with China. He could take a tough stance against price fixing and other monopolistic shenanigans. Or he could rely on the Federal Reserve for more inflation regulation. These approaches, however, would likely come at a cost to Biden’s political career. They would be criticized by warhawks and fat cats that protect their Fed loans and defense contracts.
Could the labor movement be involved in this?
The revitalized labor movement is putting some pressure on the US economy. It appears that it has woken up after decades of dormancy, and is now showing its teeth towards employers.
Last year’s strikes at John Deer and Kellogg secured better contracts for the employees and put a dent in the so-called tiered system of compensation, under which workers doing the same job can be paid differently depending on when they were hired. Amazon and Starbucks were forced to fight against efforts at unionization with different degrees of success. Entertainment giant Activision is facing pressure from its quality testers, which could pave the way for the first union in the American gaming industry. Activision is still waiting to approve the union.
Companies that are unable or unwilling to offer better terms for workers are having difficulty filling the vacant positions. Many workers prefer to leave unfulfilling work and go into uncertainty. The nationwide strike may be resented by some, but it is not the only reason. compare Although it is not a cure-all, it can’t be overlooked. And it fueled inflation to some degree as transpomassnews.companies struggled to get all hands on deck to make deliveries.
Didn’t the Biden Administration call inflation a positive thing?
Before inflation hit hard and dragged Biden’s approval ratings deep under water, some in the White House argued that a bit of a price hike may actually be good news. It’s just things going to where they are supposed to be as the economy recovers, let’s not overreact, Bharat Ramamurti, the deputy director of the National Economic Council, assured in May 2021.
Some media kept a positive view of the crisis even after the realisation of its severity. Covid-19’s uniqueness is that the economic crisis may not affect everyone as much as other times. This means even those who are poor might be able to weather it. MSNBC mocked CNN for their gloomy reporting. The network acknowledged that inflation would eat up mortgages at fixed rates and could ultimately affect the richest.
It can it endanger the presidency of the United States?
Sometimes, finding a silver lining can prove futile. Americans have considered stability of prices a key goal since the 1970s’ dreaded and feared stagflation. They also have punished those who couldn’t deliver.
Inflation may have not been the main cause of Richard Nixon’s downfall, but his successor Gerald Ford lost to Jimmy Carter as inflation averaged almost 9% during his three years of presidency. It was a similar problem for Carter, who failed to control it. Reagan came in four years later. Reaganomics, which kept prices under control is part of Reaganomics’ fame.
Considering this toxic legacy, it’s no surprise that the GOP does its best to cudgel Biden personally and his party with predictions that if he gets his social spending agenda past internal dissenters, inflation would spiral out of control. And it doesn’t take a degree in political sciences to see a red wave likely coming in November, margaritas and kickboxing classes be damned.