So, Joe Biden was out this morning in all his splendor, talking about May jobs report And several other things.
I don’t know if people remember the great moment in the 1980 presidential debate between Ronald Reagan and Jimmy Carter. Carter was like a little puppy bitten in the ankle. He kept hitting Reagan with lies, at which point The Geber finally turned to him and said, “Here you are again.” The crowd roared. The debate won and the rest, they say, was history. Good history, I might add.
Today, we’re making bad history. Today, Joe Biden was talking about this very cool streak inflation And how we must understand the root of the problem. Listen.
President Biden: It is important to understand the root of the problem so that we can take steps to resolve it. I have been frank with the American people from the start that there will be a cost here at home for Putin’s decision to brutally and brutally invade a sovereign nation.
What’s great about this is that Mr. Biden and his team are engaged in an entire campaign to hide The real cause of inflation. Or maybe they don’t understand it themselves, and that’s a bigger problem. It’s Putin raising prices, and it has nothing to do with Biden’s fiscal policy.
Of course, now that the president feels our pain about inflation, he and his minions are apologizing for being late for a year and a half. But while they are apologizing, they are spreading their own massive lies about the root cause of inflation. Once again, I bring to your attention my favorite apology to everyone, which is to have Janet Yellen’s video taken hostage. see for yourself:
Janet Yellen: Look, I think I was wrong at the time about the path inflation would take. As I mentioned, there were unexpected and major shocks to the economy that boosted energy and food prices and supply bottlenecks that badly affected our economy that I didn’t fully understand at the time.
If Putin is really the problem, then why is our inflation so much higher than the inflation rates of other major OECD economies?
A recent study from the Federal Reserve Bank of San Francisco entitled “Why is inflation in the United States higher than in other countries?” It shows that core CPI inflation in the US is around 5%, while the rest of the OECD countries run around 2%.
Of course, there was no mention of the $2 trillion emergency spending plan that provided the inflationary surge in the first place — like jamming more demand in the already-mighty Trump V-shaped recovery and at the same time Biden put a clamp on the fuel industry. Fossil and other anti-business policies that restricted the supply of goods and services.
So, in ordinary terms, Biden’s awakened economic policies boosted demand and constrained supply.
The result: higher inflation. This happened a year before Vladimir Putin massed troops on the Ukrainian border and in the year before Putin, inflation took off, as did gasoline prices, food prices, and almost every other price.
Biden will not admit it. And neither will Yellen, and by the way, neither will Fed Chairman Jay Powell, who supported Biden’s spending package and funded the borrowing of Biden’s spending package by buying all bonds and increasing the money supply. Let’s not make this more difficult than it has to be.
It’s just that Uncle Joe, who wants us to understand the roots of the problem, never wants anyone to understand the real roots of the problem.
Now, Joe is bragging about reducing the deficit, and rightly so. The deficit over the past year has been declining, but that’s mostly because many emergency spending programs have ended. Trump’s successful tax cuts boost revenue. Biden’s inflation increases revenue and, by the way, if Uncle Joe works his way up with his “Build Back Better,” he’ll put another slate of deficits and another $3 trillion in federal debt on the books from the $5 trillion unpaid “Build Back Better plan.” .
In fact, the word “paid” isn’t in Biden’s vocabulary, but Uncle Joe can’t get it both ways. If you’re spending less, stop paying for your spending package. Recently in his WSJ op-ed two days ago, he continued to push for his spending plan. So stop bragging about deficit reduction. Anyway, this all haunts dogs too much for me. We saved America and we killed Bill, and he’s still going to be killed.
No one expects Biden to tell the truth about the failures of progressive economics and modern monetary theory. So, the rest of us have to make up for our indolence by telling the truth. If the president had his way with high taxes, massive social spending by the welfare state, a new green deal, and a carbon-neutral energy grid, it would lead to a permanent recession, accompanied by higher and higher inflation, which leaves me with one last thought.
Another thing Uncle Joe didn’t tell us today: The jobs report that surfaced looks good. The numbers are the numbers. Private payrolls are up 333,000, but due to Biden’s inflation, wages for all employees have increased by 5.2% over the past 12 months that’s three percentage points lower than the latest CPI reading of 8.3%.
Production workers wages were stronger, up 6.5% from a year ago. This is still two percentage points below the inflation rate. So, lower real wages – what my friend Rick Santelli called “the Canary Islands in the coal mine” warned that the economy could deteriorate. This is what high inflation does.
my hero Elon Musk Today he said he had a “very bad feeling” about the economy.
You know me, I don’t want to go into this whole story, because I know one thing: the cavalry is coming.
This article is excerpted from Larry Kudlow’s opening comment on June 3. 2022, “Kudlow” edition.