Fiscal Conservatism Is Still Best Way to Beat Inflation
District of Columbia, Kansas | August 10, 2021
President Joe Biden counterintuitively argues that his proposed massive increases in government spending are the keys to beating back inflation, which hit 5.4% last month, and contends that “no serious economist” thinks unchecked inflation is on its way.
According to his own advisers, Biden is wrong on both counts. Treasury Secretary Janet Yellen on July 15 said she expects “several more months of rapid inflation.” Meanwhile, Larry Summers, who served as treasury secretary under President Bill Clinton, has said there is a 2-in-3 chance we’re heading toward severe inflation-related economic pain.
Americans are also concerned with Biden’s economic crisis. One recent poll found about 70% of respondents are worried that Biden’s spending plans could lead to inflation, and another survey found that 83% of Americans noticed price increases in June and July.
Their concerns are well-founded.
Almost half of small businesses have already said they’re raising prices to keep up with rising costs. Those higher prices are here to stay for hardworking families, as it’s rare that prices across the board ever deflate after rising… (Excerpts from the Daily Signal)