OPINION: This article contains commentary which reflects the author's opinion
Biden’s handling of the economy and plans for trillions in government spending has raised serious concerns among economists who’ve issued a warning for Americans to “brace themselves” for years of inflation not seen in decades.
A new report on Sunday, penned by top economists, highlights the impacts of Biden’s economic plans on the U.S. economy.
“Americans should brace themselves for several years of higher inflation than they’ve seen in decades, according to economists who expect the robust post-pandemic economic recovery to fuel brisk price increases for a while,” The Wall Street Journal reported.
“The respondents on average now expect a widely followed measure of inflation, which excludes volatile food and energy components, to be up 3.2% in the fourth quarter of 2021 from a year before. They forecast the annual rise to recede to slightly less than 2.3% a year in 2022 and 2023. That would mean an average annual increase of 2.58% from 2021 through 2023, putting inflation at levels last seen in 1993,” the report added.
The economists claim that inflation measures had jumped to their highest levels since 1993 and that the Biden administration may not raise rates until after the midterms in 2022 to avoid hurting the Democrats at the polls.
- Joel Naroff, chief economist at Naroff Economics LLC: “We’re in a transitional phase right now. We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”
- Diane Swonk, chief economist at Grant Thornton: “Inflation is expected to surge longer and longer—longer than the Fed previously thought. The Fed is now likely to raise rates in the first half of 2023, although some Fed presidents will be nipping at the bit to move sooner.”
- Kevin Swift, chief economist at the American Chemistry Council: “The danger is that monetary authorities are behind the curve. I’m not saying hyperinflation is around the corner, just that a lot of things have come together in the last year, and the overall trend of costs across the board is growing faster than in the last five or 10 years.”
- Swift noted the havoc that inflation is having on the construction industry, saying: “It’s disruptive—you can’t be sure of what your costs are, whether you can get supplies or what the costs will be six months from now. I’d hate to be in the construction business trying to bid on a job when you don’t know what the cost of steel will be 18 months from now.”
As detailed in the Daily Wire, the Biden administration is aware of inflation and has tried to downplay its impact, which many Americans are already feeling with the rising prices of gas and food. On the week of July 4th, the Biden administration told Americans on social media that they were saving an average of 16 cents on the cost of the total amount of food they’ll consume, citing it as proof that the “Biden economic plan is working.”
“The cost of a 4th of July cookout in 2021 is down $0.16 from last year,” the tweet read. “Planning a cookout this year? Ketchup on the news. According to the Farm Bureau, the cost of a 4th of July BBQ is down from last year,” it continued. “It’s a fact you must-hear(d). Hot dog, the Biden economic plan is working. And that’s something we can all relish.”
Planning a cookout this year? Ketchup on the news. According to the Farm Bureau, the cost of a 4th of July BBQ is down from last year. It’s a fact you must-hear(d). Hot dog, the Biden economic plan is working. And that’s something we can all relish. pic.twitter.com/7h9qLauIbC
— The White House (@WhiteHouse) July 1, 2021
It’s a message that has been touted by the Biden administration in the months since he took office.
The Biden economic plan is working. pic.twitter.com/boXNRUWEvi
— Joe Biden (@JoeBiden) May 27, 2021
The Biden administration was roundly mocked for the social media post, with many politicians and pundits criticizing the White House for drawing attention to the slight drop in food prices as the price of gas continues to skyrocket in the wake of Biden’s cancellation of the Keystone XL pipeline expansion and other decisions intended to deal with climate change.