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Biden’s Inflation Plan is Failing
Inflation has been rising steadily since President Joe Biden took office, and his new plans to fight rising prices are being met with skepticism by critics. Biden and his administration repeatedly blamed rising gas and electricity prices on Russian President Vladimir Putin and his unprovoked invasion of Ukraine.
Though other factors, including higher demand, jammed supply chains, rising housing values, and stimulus efforts directed at Covid-19, were also pointed to by experts as reasons behind the soaring prices. Inflation has been dogging Joe Biden and his administration for months after they downplayed concerns over inflation rates last year.
Biden administration, as president, will say, you take a look around the world, the big economies, they are all having higher inflation. Republicans contend President Biden lost credibility on inflation long ago, when he initially dismissed it as a passing blip in America’s reopening economy after the pandemic, only to watch the higher prices become the lingering, lasting issue.
After months of dismissing inflation as temporary, and downplaying how it is hurting American families and businesses, President Biden is pushing an agenda he says will fight inflation. The White House launched a new effort on Tuesday to rein in political damage caused by inflation after President Biden complained for weeks to aides that he was not doing enough to explain publicly the fastest rise in prices in about four decades.
Even as a bullish President Joe Biden seeks to emphasize the administration’s total focus on inflation, the President acknowledged that he is left with few options for combating skyrocketing costs, particularly as a heavily divided Senate blocks most of Mr. Biden’s domestic agenda. The knock-on of his plan for combating inflation is that Joe Biden has mostly conceded that controlling higher inflation is largely out of his control.
After months of dismissing inflation as “transitory” and downplaying how it would harm American families and businesses, President Biden is pushing a “plan” that he says will fight inflation.
Here are five reasons to be concerned with Biden’s plan to fight inflation. As part of this plan, Democrats are pushing massive tax increases on American businesses including raising the corporate tax rate to 28 percent, a rate higher than Communist China and the average rate in Europe.
These tax increases will not be paid by large corporations but will be passed along to working families in the form of higher prices. For instance, a 2020 study by the National Bureau of Economic Research found that 31 percent of the corporate tax falls on consumers. “msn.com“
Bidens also got one thing right in emphasizing the fact that his predecessors wrongly hammered the Fed into cutting interest rates in 2019, thus forcing the economy into an overheating state, which fuels inflation. President Biden also noted that Americans are frustrated and that they are not at fault, using the stage to differentiate between his administration’s plans for curbing inflation and the plans being put forward by congressional Republicans.
Conservative economists and many centrist experts also said President Biden’s $1.9 trillion stimulus plan last year made inflation worse, by overstimulating the American economy and driving up demand. President Biden is keen to blame some of the inflation on the Russian war in Ukraine, which has driven up energy prices and led to a significant realignment of energy markets.
Both the administration and the European Union have now announced plans to stop the importation of Russian energy products. President Bidens White House has also highlighted the role that supply-chain issues in China played in the inflation, with the country facing criticism for the imposition of strict lockdowns in key cities like Shanghai, which has affected the Chinese labor market and the world’s production lines.
The President has further proposed to reduce the cost of housing through his 5 Year Plan to Action on Housing Supply, which aims to increase the housing supply through expanding federal funding of affordable-housing developments, as well as working with the private sector on supply chain issues that can speed up construction.
President Biden has given his nod to increasing affordable housing with a plan that shows that he is aware of real-estate prices, which typically account for one of the largest expenses for American consumers. Biden has acknowledged inflation is taking the wind out of many families’ sails, as the prices of gas and groceries explode – an issue made worse by Russia’s invasion of Ukraine.
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