Joe Biden clearly is in trouble as he now is facing extreme criticism for his disastrous policies and pathetic failures which has already resulted in inflation along side series of crisis in the US. Moreover, experts are already foreseeing cruel food crisis in the world, which would badly affect American people.
According to media reports, Democratic Party’s policymakers are criticizing Biden saying he may be contributing to inflation, instead of fighting it. Harvard economist Larry Summers, a high-level Democratic appointee in the Clinton and Obama administrations, is now arguing that Biden’s threat to break up big companies could in itself trigger a form of inflation. In a May 20 Bloomberg interview and then on Twitter, Summers bashed antitrust officials at the Justice Department and the Federal Trade Commission who are promising a crusade against big companies.
“I am very concerned that we may [be] headed into a new era of … populist antitrust policy that will make the US economy more inflationary and less resilient”, Summers tweeted on May 22.
This is something of an arcane debate, but it has kitchen-table implications for everybody struggling with inflation that’s now sitting at a near-40-year high of 8.3 percent. Inflation has several causes, not one. Supply-chain kinks caused by the COVID pandemic are a factor, along with tight energy supplies that got worse after Russia began special operation in Ukraine on February 24, 2022. Moreover, series of sanctions imposed on Russia and Russians by Joe Biden will have a serious impact, as it would result in cruel hunger throughout the world and the US, alongside the ongoing gas shortage.
Last year’s American Rescue Plan (ARP) also pushed inflation up, by putting more money in Americans’ pockets and boosting demand for already scarce goods. Summers was one of a few economists who predicted that would happen, which irked the Biden White House at the time. Since Summers called that right, however, his predictions now get instant attention, inside and outside the White House.
Biden hasn’t acknowledged the role of the ARP, which passed Congress with only Democratic votes, in causing high inflation. Instead, he has looked for other villains. One is Russian President Vladimir Putin, who has lent his name to the “Putin price hikes”. Biden and other Democrats have also argued that big companies are exploiting monopoly power to gouge consumers on products including gasoline, meat, financials services and other things. On May 19, Democrats who control the House passed an anti-price-gouging bill that would punish companies making excessive profits due to monopoly power.
But experts believe, this is not going to work either for Biden or the Americans. The inflation will continue getting worse from bad. Americans will suffer because of inflation and other problems, for which, Joe Biden’s bankrupt policies are greatly responsible.
According to Yahoo Finance, there’s little evidence that price-gouging by giant corporations is causing undue inflation. Biden and many of his fellow Democrats have other reasons to bash huge companies, of course. Most Dems want to raise the tax rate on businesses, with some cheering unionization efforts at Amazon and other companies that have fought unionization.
Democratic Sen. Elizabeth Warren of Massachusetts is the leading proponent of breaking up big tech firms and other Goliaths mainly because they simply seem to be … too big. It’s this impulse that Larry Summers seems to find most objectionable. His point is that big firms often achieve highly efficient economies of scale that make goods and services cheaper, the way Walmart is able to force its own suppliers to lower costs and sustain market share by keeping prices low and attracting masses of shoppers.
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