Biden Shifting Blame For Economic Disaster

From the time Joe Biden assumed the White House, the financial burden on ordinary American households has escalated. Inflation has gone from “transitory” to persistent while wages have been stagnant.

The Biden administration has steadfastly blamed anything and everything other than its disastrous spending policies for the ongoing decline of the American standard of living. Now, Joe Biden is attempting to pass responsibility for surging prices on retail companies that are also being hammered by the increased production costs associated with the disastrous levels of federal borrowing, money printing and spending that have been the hallmark of the current administration.

White House National Economic Council Director Lael Brainard recently attributed all of Americans’ financial struggles to companies raising prices, also making a dubious claim of growing wages. The claim overlooks the complexities of economic inflation and the government’s role in creating it.

The Federal Reserve’s expansion of the M2 money supply by over 50% in four years is a glaring example of how inflation is driven by federal monetary policy and not by the pricing decisions of individual retailers who are in business to sell their products to willing buyers.

Even though there has been a slight reduction in the money supply since the Federal Reserve began raising interest rates to fight the highest levels of price inflation seen in four decades, the supply remains significantly higher than pre-pandemic levels. The government’s massive spending since 2021 continues to flood the market with far too many dollars chasing too few goods, fueling continuing inflation.

The Biden White House’s attempts at election-year misdirection and propaganda will likely continue to attempt to label corporate greed as responsible for the pain felt by consumers. While a certain portion of the public might buy into that narrative in the short term, the excuses will do nothing to alter the reality every American faces at the grocery cash register and gas pump.

Biden’s demand that retailers “lower prices now” flies in the face of basic economic logic. As energy, transportation and input costs continue to surge in every industry, there is no scenario in which companies can stay in business by lowering prices in the face of runaway federal spending and monetary inflation.

Of course, the upshot of the administration’s rhetoric is to shift responsibility away from the foolish fiscal and spending policies it has pushed on Congress, either dominated by Democrats or compromised by weak Republicans who do not have the resolve and fortitude to demand sane levels of government spending within the means of the American taxpayers.

While Joe Biden’s blame game might provide a convenient political narrative for campaigning purposes, it will do nothing to help struggling Americans deal with the skyrocketing costs that are making even maintaining a basic standard of living feel totally out of reach.

The field is wide open for President Donald Trump to throw a heavy dose of reality on Biden’s economic fantasies as the 2024 election season gets into gear.