Biden’s inflation celebration at the White House came hours after an unexpectedly high inflation report caused stocks to tank.
It is appropriate, not ironic, that President Joe Biden celebrated the signing of the Inflation Reduction Act a few hours after reports of unexpectedly high inflation caused the U.S. stock markets to plummet.
The Inflation Reduction Act is simply the biggest chunk of the Green New Deal the Democratic Party thought they could sneak through Congress this year, larded with payouts to Democratic donors and voters. It is the latest gut-punch to the American economy in the name of climate change and attempted vote-buying.
While Biden and his team were putting the finishing touches on their celebration of another milestone in their 18-month government-spending spree, the U.S. Department of Labor reported the year-over-year inflation rate was a surprisingly high 8.3 percent in August. That spooked the Dow into a drop of 1,276 points, or 3.94 percent, and pushed the S&P 500 down a brutal 5.16 percent.
That’s the worst day of the year thus far for those indices, as hardworking Americans watch their retirement accounts shrink like Biden’s grasp on reality.
Meanwhile, there was Biden at the White House, whistling past the graveyard in which he and his congressional Democratic allies have buried the nation’s economy. While millions of Americans wonder how to pay their rent, the mood at the celebration on the White House lawn was “jovial,” The Hill reported.
“Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do,” Biden said in a press statement earlier in the day. How inflation of more than eight percent means prices are “essentially flat” is a mystery to normal people.
The Biden administration keeps touting gasoline prices having descended from the $5-plus per gallon record they hit a few months ago, yet the average price is still far above where it was when Biden took office and began aggressively suppressing domestic U.S. oil and gas development.
Reducing supplies increases prices if demand does not decrease accordingly. The decrease in gas prices mainly indicates demand is going down, which is another sign we’re in a recession. In addition, Biden’s anti-fossil-fuel crusade enabled the fuel shortage in the wake of Russia’s invasion of Ukraine that caused U.S. gas prices to skyrocket (and they rose even more rapidly in Europe, which has the very energy policies Biden is trying to impose here). Had U.S. production of oil and gas remained on the upward trajectory achieved by President Donald Trump through regulatory relief, U.S. consumers would have been insulated from the Russian supply shock.
With unnecessarily high fuel costs, the rapid increase in government spending, and rising interest rates making other items more expensive, price increases for food, housing, and other important consumer goods outweighed the easing of gasoline prices in August. The American consumer keeps getting hit hard by inflation because government largesse is steadily increasing overall spending while regulations are suppressing the supply of goods and services. More spending on fewer goods brings higher prices.
As Biden bragged about his climate record and pretended he has whipped inflation, the media predictably ran interference for him. Politico amusingly headlined its article on the inflation numbers “U.S. inflation falls for 2nd straight month on lower gas costs.” Having been stabbed nine times a month ago, the American consumer was stabbed only eight times this month. Progress!
Most people are not falling for the scam. A Harris Poll released on Monday found 53 percent of registered voters believe the Inflation Reduction Act will increase inflation instead of reducing it, and only 21 percent think the law will do what its comical name states. 54 percent said their personal financial situation is getting worse, and only 23 percent said it is getting better.
Blithely ignoring the plight of the dirty-faced commoners Harris polled, Biden and Vice President Kamala Harris at the White House celebration “highlighted the work the administration is doing on climate, with Biden saying he wants to take the ‘most aggressive action ever’ to confront the crisis,’” Reuters reported.
It was appropriate, not ironic, that they spoke proudly of their crusade against fossil fuels while the American people struggle to make ends meet. The dire condition of the American economy is a direct result of the concerted effort of Biden and congressional Democrats to send the nation back into the ages before the Industrial Revolution made widespread prosperity possible. They intend to siphon all the fuel out of the modern economy, and they don’t seem to care one bit who it hurts.
S.T. Karnick (skarnick@heartland.org) is a senior fellow and director of publications for The Heartland Institute, where he edits Heartland Daily News.
Originally published by RedState. Republished with permission.
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