Biden’s credibility on inflation, gas, and the economy is melting like an ice cube in the summer sun

America is not doing well now. If you have had a child, travel or eat, you may have noticed. small business in america The Wall Street Journal noted this week that “57 percent of small business owners expect economic conditions in the United States to get worse next year,” which corresponds to the pandemic’s lowest level in April 2020. However, Biden and his followers clearly did not They notice – either that, or they don’t particularly care about the misery that their wrong policies cause the American people.

While the American economy is falling a rabbit hole for its failed policies, Biden clings to catchy phrases To save a presidency, its credibility melts like an ice cube in the summer sun.

More recently, President Trump has been called the “King of MAGA,” as if calling Trump the leader of the Make America Great Again movement was an insult. seriously? Biden really needs to take the time to talk to people outside the progressive bubble to run him.

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Here is the real world, Inflation remains devastatingly high. While the administration grumbles about supposed wage gains, American workers are steadily losing more ground each month, as the highest rate of inflation since the early 1980s eats up all of their salary increases — and then some — making them worse off in real terms. Meanwhile, gas prices have risen to a record high and are still rising. Grocery store shelves are barren. Parents are scrambling to find a formula to feed their children.

The situation is not improving, and given this administration’s commitment to tax and spending – at this point, only spending and spending – policies, there is no light at the end of the tunnel.

Biden and the Democrats are in a deep hole, and the only thing they can apparently do is keep digging.

The CPI rose another 0.3 percent last month, and now stands at an annual rate of 8.3 percent. The Producer Price Index, which measures wholesale prices and thus acts as a reliable indicator of future inflationary pressures, is up 11 percent from a year ago.

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And all this despite the 1.4 percent GDP contraction in the last quarter, which undoubtedly had an anti-inflationary effect. In other words, inflation would have been worse if the economy had not been teetering on the brink of recession.

President Joe Biden and Japanese Prime Minister Fumio Kishida

President Joe Biden meets with Japanese Prime Minister Fumio Kishida at Akasaka Palace, Monday, May 23, 2022, in Tokyo. (AP Photo/Evan Vucci) (AP News / AP Images)

We are in the midst of a self-reinforcing inflationary spiral in which higher prices drive up prices, straining working families’ budgets and draining retirees’ savings.

Federal Reserve Chairman Jerome Powell is trying to quell out-of-control demand by raising interest rates. He admitted in a recent press conference that this would be painful. he is right. It would be painful for the middle- and working-class Americans who are driving this demand.

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On the other hand, Biden is calling for increased spending under his latest version of Build Back Broke to drive economic growth. What is the likely rationale for advocating spending to drive economic growth when the Fed is simultaneously slowing economic growth to rein in inflation?

Joe Biden giving a speech

FILE – President Joe Biden delivers a speech on infrastructure spending at Carpenters Training Center Pittsburgh, Wednesday, March 31, 2021, in Pittsburgh. (AP Photo/Evan Vucci/AP Newsroom)

Obviously someone is simply confused about what’s driving inflation, and as between Biden and Chairman Powell, I don’t think there’s much confusion about who that is.

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Unfortunately, it increasingly appears that we will have to endure a severe recession and possibly a period of stagflation before inflation returns to manageable levels, just as we did in the early 1980s, when Ronald Reagan and Federal Reserve Chairman Paul Volcker teamed up to tame the inflation monster that overwhelmed Previously on three successive administrations under both parties.

It didn’t have to be this way. Policymakers in Washington could sit back and watch the market correct itself after the devastation wrought by the pandemic and its associated shutdowns. They could then take credit for the recovery and might even return for re-election.

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Instead, President Biden and Democrats in Congress wanted to seize what they saw as an opportunity to remake America. Jealous of the credit Donald Trump and Republicans were demanding for their stimulus packages during the height of the recession, Democrats, through their expensive and wholly unnecessary legislation, pushed for $1.9 trillion COVID “relief” early in Biden’s first year.

This, along with a $1+ trillion “infrastructure” bill passed a few months later, pumped massive amounts of money into an overheated economy. With demand already outpacing supply as the country comes out of lockdown and consumers are once again beginning to spend on things like entertainment and travel, the White House has recklessly inflated the demand bubble with trillions of dollars (borrowed) for no better reason than claiming partisan victories, and without regard to the true state of the economy.

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We are now aware of the results. While inflation is a global problem, out of control inflation is a domestic problem in the United States caused by bad policy and subsequently exacerbated. Biden needs to open his eyes and correct course – immediately. And the longer he waits to address these problems, the more painful it will be for middle- and working-class Americans and the small businesses that hire them.

But course correction is not in Biden Plame’s playbook. Biden and the Democrats are in a deep hole, and the only thing they can apparently do is keep digging.

For the country’s sake, they should stop – or stop at the ballot box – before it’s too late for posterity.

It would actually be a relief to have a president bent on making America great again. Perhaps then more Americans can afford gas and food – and mothers can find some baby formula.

Andy Puzder has been CEO of CKE Restaurants for over 16 years, having worked as an attorney. He is currently the CEO of 2ndVote Value Investments, Inc. and a Senior Fellow at Pepperdine University’s School of Public Policy and the America First Policy Institute. He was nominated by President Trump to be the United States Secretary of Labor.