New Fed study shows Biden owns our economic disaster

President Joe Biden loves to blame our sky-high inflation on corporate greed and Vladimir Putin. But a new study from the San Francisco Fed shows it was Biden himself who put America on this grim trajectory. 

Specifically, it was the massive $1.9 trillion stimulus dumped into the US economy in early 2021 by the president’s American Rescue Plan. 

As the nearby chart demonstrates, the nation began heading into the inflationary stratosphere in early 2021, while other advanced economies, the other countries in the Organization for Economic Co-operation and Development, haven’t seen anything like the soaring prices now punishing workers across America. 

Which means that the spike is due to something US-specific, rather than global prevailing conditions. That policy, was, of course, Biden’s signature economic “achievement.” 

The damage it did has been massive. Median OECD inflation went from around 1% to 2.5% during 2021. Here? From under 2% to 7% (5% excluding food and energy). And it kept on rising after that, to the nearly 8% we see now. The details are uglier still: Per the latest data, fuel oil is up almost 44%; gasoline, 38%; meat and eggs, 13%.

Put in concrete terms, a recent Bloomberg calculation translates this to an added $433 per month in household expenses for 2022. 

Shaded area reflects interquartile range for OECD sample
Note: Shaded area reflects interquartile range for OECD sample.
OECD Household Dashboard: cross country comparisons

And historic producer price inflation, a shocking 10%, guarantees even more pain ahead. 

It was utterly unnecessary: Biden’s stimulus was pure political favor-currying dumped into an economy already overheating on the demand side. Little of it had much to do with the COVID relief it claimed was the point. 

And don’t forget: The same Fed data also show that the 2020 stimulus did not touch off an inflation explosion, suggesting it was properly timed and directed. 

The gasoline price board is shown at a gas station in Menlo Park, Calif., March 21, 2022.
Inflation has been soaring across the US for months.
AP/Jeff Chiu

Also, while Biden’s move didn’t officially happen until March and inflation was heading up before that, he was clearly signaling from the start what he was going to do, thus opening the floodgates.

The Biden White House, despite being proved wrong over and over on the economy, is sticking to its guns — still talking about “Putin’s price hike” and stupidly tapping our Strategic Petroleum Reserve instead of getting out of the way and letting America move back toward energy independence. 

Yet those Fed numbers don’t lie, and that chart is worth a thousand words (adjusted for inflation). Biden owns our economic nightmare. 

And it’s going to keep getting worse unless he does an about-face. 

Read More: New Fed study shows Biden owns our economic disaster

Notify of
Inline Feedbacks
View all comments