Ben Shapiro: Yes, it’s Biden’s inflation

Op-ed views and opinions expressed are solely those of the author.

This week, America received news of yet another shocking inflation report: over the past 12 months, inflation has skyrocketed 8.5%, outpacing wage gains by 2.9%. That inflation has flooded every area of American life, from gas (up 48%) to airfare (24%) to furniture (16%) to milk (13%). Inflation is costing the average American family hundreds of dollars per month — and, as we know, inflation is a highly regressive tax, harming those at the bottom of the income spectrum the most.

For its part, the Biden administration blames Russian President Vladimir Putin’s invasion of Ukraine. White House press secretary and incipient MSNBC employee Jen Psaki announced, “we expect March CPI headline inflation to be extraordinarily elevated due to Putin’s price hike,” and blamed gas prices alone for the spike. That, of course, is ludicrous. In February 2021, the month after Biden took office, the inflation rate was just 1.7%. In April 2021 it spiked to 4.2%. By May 2021, the inflation rate was 5%; it remained in that range until October 2021, when it spiked to 6.2%; it then spiked again to 6.8% in November 2021 and 7.5% in January 2022.

In other words, the problem ain’t Putin.

It also isn’t supply chain issues alone. The core inflation rate in Europe has remained well below that of the United States; the harmonized index of consumer prices (HICP) was 5.9% in February 2022 in the Europe area, compared with 7.9% in the United States.

So, what is the problem? The problem lies in loose monetary policy from the Federal Reserve for years on end, combined with wildly irresponsible economic policy from the Biden administration. Begin with the Federal Reserve. Between 2008 and 2015, the Federal Funds Effective Rate was essentially zero. It rose to 2.39% in May 2019, then dove back down to zero amidst the COVID-19 recession. This means that the Federal Reserve essentially subsidized borrowing and spending for years on end.

But the problem didn’t stop there. During the COVID-19 downturn, the Federal Reserve purchased some $4 trillion in assets, injecting liquidity into the economy in the mistaken belief that the problem was lack of demand, not lack of supply. This superheated the economy; as supply chains attenuated, prices rose dramatically.

All of this was accompanied by ridiculously spendthrift policy from the Biden administration. The Trump administration, along with a bipartisan contingent in Congress, spent nearly endless amounts of money as the American economy was subjected to an artificial coma. But the Biden administration entered office with a working vaccine and COVID-19 on the wane — and then proceeded to inject trillions more in spending into the economy. In 2020, the government spent approximately $6.6 trillion in federal outlays; in 2021, the year of recovery, the government spent $7.2 trillion.

That spending was wildly unjustifiable. With vaccines available and people going back to work, the Biden administration had a responsibility to leave the economy alone. Instead, Biden insisted on reshaping the economy according to his whim. As Ezra Klein lamented to former Treasury Secretary Larry Summers, “there was a reason the Biden administration wanted to run the economy hot… it felt, finally, like we were reaching people on the margins. We were putting a lot of firepower to do that… And then for that to turn into this horrifying inflation problem, which is now eating back those wage increases… I recognize the world doesn’t have to please me, but it is maddening.”

Yes, reality is maddening. But not quite as maddening as the predictable results of ignoring financial reality, then lying about it in order to blame someone else.

Ben Shapiro, 38, is a graduate of UCLA and Harvard Law School, host of “The Ben Shapiro Show,” and editor-in-chief of DailyWire.com. He is the author of the New York Times bestsellers “How To Destroy America In Three Easy Steps,” “The Right Side Of History,” and “Bullies.”

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Fed Up
Famed Member
Fed Up
1 month ago

Let’s go back to the real beginning of all this. After the housing bubble crashed in 2008, Fed slashed interest rates to zero. Not rates like credit cards, but savings. So naturally, people with savings started putting their money into the stock markets to protect their return on their investments. Now 14 years later bank saving rates are still essentially zero, credit card rates are above 20% and a lot of people are getting squeezed trying to make their credit card payments.

Basically, the Fed and the government screwed up the financial system 14 years ago and now haven’t got a clue how to get it back without driving the country into depression. So naturally, they jumped on the communist bandwagon and are working to create a total welfare state, because after all its worked so well everywhere else its been tried.

Midway1
Famed Member
Midway1
1 month ago

How much longer, will the Protective Partisan Propaganda Press keep with the coverup, in trying to save Beijing Biden?

anot
Noble Member
anot
1 month ago

The Democrats policies have predictable results. The corporate media have
gas lighted everyone for years on how great these policies are but the 
failure is so huge no one can hide it. You just look at your food bill 
the gas you pump into your car and the fact your check seems smaller even 
though your spending has not changed. This will lead to a pull back and 
a deep dark recession. For people voted for Democrats and
Biden who say they could never have seen this coming, your lying
to your self and should self deport as you have damaged one of the best
economic times we have had in history. Now your salary isn’t keeping up
with inflation and we are all poorer for it. 

Last edited 1 month ago by anot
Ty202204
Noble Member
Ty202204
1 month ago
Reply to  anot

You are wrong Mr. Shapiro. For inflation doesn’t just steal from the bottom. It redistribute purchasing power from the last receivers to the first receivers of the inflated currency.

In promoting the something for nothing trade, that is from the producers to the non producers. From savers and creditors to debters. Guess who the largest debters are? The government and the banks. I don’t have to say who received the funds first.

Midway1
Famed Member
Midway1
1 month ago
Reply to  anot

They’re still trying to print more trillion$. No one can rein these whackos in.

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