Former Obama Advisor Reveals Joe Biden’s Biggest Mistake
(TargetLiberty.org) – Inflation is the biggest crisis facing ordinary Americans right now, and the Democrats are desperate to bring it under control before they’re punished for it in November’s midterm elections. Many of them are blaming businesses for price rises, slamming “corporate greed.” House Speaker Nancy Pelosi (D-CA) has even gone full socialist and called for government-imposed price controls. Now, a former senior economist in the Obama administration has poured cold water on his party’s fevered plans.
Biden the blamer pins inflation, high gas prices on Putin, corporate greed, COVID-19 and morehttps://t.co/hYSPcOG7Pf
— Fox News (@FoxNews) May 11, 2022
On May 22, Former Obama-era economic policy chief Jason Furman dismissed the rush to push anti-price gouging bills through Congress when he was talking to CBS. He called them “gimmicky” and added “Corporate power is likely playing a very small role” in the current inflation. Advocates of the corporate greed theory include Pelosi, Senator Bernie Sanders (I-VT) and President Joe Biden himself — but Furman says they’re all wrong.
Furman told CBS the real cause of inflation is high demand at the same time as essentials are in short supply. For example, world gasoline prices are rising because Russia, a major oil producer, is now under heavy sanctions. Lots of people chasing a scarce product pushes prices up; that’s basic economics.
Prices stop rising when fewer people are willing to buy the product at the higher price, and demand falls to match supply. At the same time, the higher price attracts more producers, supply increases and the price falls again. Furman pointed out that this isn’t happening because Biden’s American Rescue Plan was “larger than it needed to be” — it pumped more money into the economy than it could handle and there was no plan to increase supply. Biden is still trying to duck responsibility for our inflation crisis, but it isn’t working.
Copyright 2022, TargetLiberty.org