Economist Steven Rattner was economic advisor to the Treasury Department during the Obama administration. He is also the go-to economist for MSNBC’s “Morning Joe” program. He is almost always using his iconic charts to support Democrat economic theories and social programs. But not so much on inflation – as of late.
Rattner understands what virtually every economist knows – that inflation is too many dollars chasing too few goods and services. On several occasions in the past, he has warned that the various stimulus packages would fuel inflation. In an earlier opinion article in the New York Times, Rattner called Biden’s $1.9 trillion unfunded stimulus plan the “original sin” leading to inflation.
The final Trump stimulus money was probably too much – and the Biden stimulus package passed in his first days in office was definitely too much. And Biden was not done. In an effort to be the Daddy Warbucks for the folks back home, Biden was on an obsessive spend … spend … spend … agenda. And then spend more. In fact, he has been on that bandwagon all his political life.
Biden made the ridiculous claim that his Infrastructure Bill was not inflationary – but merely putting money into the over-heated economy to produce jobs. He went on to claim that his failed Build Back Better proposal that would put more than a trillion dollars into the economy would ease the inflation that was soaring to heights not seen in 40 years. He was wrong on both counts.
He told the American people that he wanted to give them more money to compensate for the inflation – a plan that would have further fueled the inflation. More fuel on the inflationary fire.
Biden’s main problem is that despite his claims to the contrary, none of his proposals were full funded by increases in taxes. Without that – as bad as THAT is – you get inflation.
Thankfully, there were one or two senators who understood inflation – Kristen Sinema and Joe Manchin. Like Rattner, they had warned us of its coming – and the senators put the brakes to Biden’s spending madness.
Now that Biden can no longer deny the inflation – or to credibly say it is short term — he had this excuse. It is the supply-chain problem created by the Pandemic that is causing the inflation. With that explanation, Rattner apparently had enough of the White House nonsense.
In a more recent opinion article in the New York Times, he basically said that Biden was full of baloney. He called out Biden for misleading the public with the supply-chain excuse. Rattner said that blaming the supply-chain for the inflation is like blaming a sweater for feeling hot while putting more logs on the fire.
The Biden inflation will not be ending soon. Even if the rise in inflation flattens out, the inflated prices are not likely to come down for a loooong time. Just keep your eyes on those gas prices. They impact on everything else.
So, where does that leave Biden – hung out between economic ignorane or a political liar. Take your choice. Without using the word, Rattner seems to have made his choice.
So. There ‘tis.