Residents across the U.S. are finding that the cost of everyday items, such as groceries, is rising. | Canva
Residents across the U.S. are finding that the cost of everyday items, such as groceries, is rising. | Canva
American economist and professor Lawrence Summers is among the Americans who predicted inflation early last year if the Biden administration wasn't careful with their monetary actions.
Summers said on Twitter, "I’m not sure that we would have the inflation if there had never been a pandemic and, even if there had been a pandemic, without the overwhelming stimulus that was applied well into recovery – during 2021."
In light of the 7.5% increase in prices, as reported by the Bureau of Labor Statistics this month, the majority of Americans across the country, and specifically in the state of North Carolina, disapprove of the Biden administration's handling of the economy and the continuing pandemic.
However, economists believe there isn't much that President Biden can do to get the country out of its economic rut.
Still, Americans grow impatient with the rising cost of goods, and the perception that the Biden administration is not doing anything to help continues to grow.
The latest national CNN poll revealed that nearly 6 in 10 Americans are unhappy with the performance of the Biden administration, amidst widespread inflation and increased coronavirus cases. The poll found that 58% of Americans disapproved of Biden’s job performance, while just 41% approved.
Though it was clear that the Biden administration needed to take action in order to provide Americans with the means to make it through the economic challenges of the pandemic, many critics warned about the consequences of these drastic measures.
In a Washington Post article from early 2021, Summers warned of the sharp rise in inflation that would occur, given the financial commitments of the Federal Reserve and the Biden administration’s dismissal of the mere possibility of inflation.
Many economists do not believe that the Biden administration can actively help the situation now. Instead, they said that it's more of a waiting game.
William Galston, former domestic policy advisor to Bill Clinton, is not dismissive when it comes to inflation concerns. Having lived through the inflation of the late 1970s and early 1980s, Galston knows that inflation can be beaten, but “the question is whether you’re willing to endure the pain,” he said.
Galston feels that Biden must be more active in showing he’s working to fix the economy, recalling advice from Bill Clinton, who said, “you may not be able to fix the problem right away, but you have to be caught trying.”
On Feb. 10, the Bureau of Labor Statistics released the Consumer Price Index (CPI) data for the 12 months ending in January 2022. The data showed a 7.5% annual increase, which is the largest increase in 40 years, since 1982.
According to The New York Times, White House spokesperson Emilie Simons claims the president “is using every tool available to reduce prices.”
Alerts Sign-up