As we’ve said many times on this show: Americans are smarter than Joe Biden thinks. No matter how many displays of cognitive dissonance from Mr. Biden or lies or – to use a word I prefer not to apply to presidents, but in this case – outright lies, Americans see right through it.
You can’t tell the public that there is no inflation when the prices of food, groceries, electricity, natural gas and cars are rising rapidly. Despite the recent drop in gasoline prices, they are still up 26% from last year. As a result, working people have been forced to take a 3.4% pay cut during that period.
Therefore, I do not blame the employees of the railway union for demanding higher wages. They are just trying to capture the higher prices. They do not control government spending and monetary stigma. They are victims of very bad policies.
Mr. Biden’s zero-inflation “celebration” on the White House lawn is a slap in the face to these people. When he says he “inherited” an economic crisis and turned it into a “resurrection”, it is factually incorrect. The public knows this. In fact, he inherited the V-shaped resurgence from President Trump and turned it into a crisis. No amount of James Taylor songs are going to change that.
The economy was growing at around 6.5% in the first quarter of 2021 with inflation at around 1.5%. So far this year, the economy has slipped into negative territory and more may come. The Atlanta Fed’s GDP tracker has been cut for the third quarter from 2.6% to 0.5%.
The CPI is up 8.3% compared to a year ago, and certainly people feel it in their bones and in their budgets. The Cleveland Fed’s average CPI, a very useful measure of core inflation, is now up 6.7% after rising month-on-month and, as the economy plunges into recession, we are experiencing a price-wage spiral that embedded in the economy. Milton Friedman called it “inflation slowdownThese days we call it “stagflation” and the Biden Democrats are now at war with the Federal Reserve.
Bank of America warns of new lows for S&P 500 as ‘inflation shock is not over’
The former keeps spending and borrowing like there is no tomorrow, while the Fed is tightening the money. This is not good. real inflation is three to four times irrigatedTarget and Team Biden are giving Jay Powell & Co. no choice but to tighten even more aggressively, which is going to do even more damage to the economy, which clearly no one, including me, wants .
Instead of opening all the energy spigots or lowering taxes or removing business regulations, the Bidens are closing the spigots with their massive central-planning regulatory onslaught, raising taxes and moving toward big-government socialism. Huh.
For now, the supply side is dead, while Democrats can scratch every radical, progressive programmatic itch. Think of it this way: There’s no oxygen in the economy. Its veins are completely closed and Mr Biden says that is not the case, but the facts clearly say something else. Again, Americans are not fools. Now, listen to a key Biden aide. Check it out for yourselves:
Hillary Clinton: “There’s going to be a lot of energy in this midterm election from women and men who don’t want a government, politicians like Abbott or anyone else who doesn’t want to come into their lives. Enough with the bullshit of sending these poor Venezuelans to Martha’s Vineyard or East Pardon the President, who stole confidential information.”
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With the greatest of respect, Madam Secretary, these Left causes are not going to push the midterm elections. Of course, I respect voters who agree with you, but this election is going to be an election of inflation, an election of recession, a financial Election. There are plenty of issues in the air but none as effective as the economic collapse of America in November.
I end on an optimistic note. Biden’s failed policies will be changed. Why? Because most people know they need to be changed. Men and women of good faith and common sense are going to change them simply because people know that change is absolutely necessary to make America great again. So the cavalry is coming and that’s my crack.
This article is adapted from Larry Kudlow’s opening remarks on the September 16, 2022 edition of “Kudlow.”