Top economic advisers of the former Democratic President Barack Obama blame President Joe Biden and his administration’s economic policies and voiced frustrations that Biden has not noticed the growing inflation crisis. Steven Rattner, the former counselor to the Treasury in the Obama government, issued a scathing op-ed Tuesday and said the $1.9 trillion American Rescue Plan of Biden, approved in March, was the original mistake that became the primary reason for today’s inflation, which hit the peak rate since November 1990, according to the statement from the Labor Department.
🚨Grim news for Biden and Democrats when it comes to inflation per Politico/Morning Consult…
▪️58% of all voters blame Biden’s policies for inflation
▪️58% of independents and 41% of Dems(!) blame Biden for the problems pic.twitter.com/BaT5IYCyfH
— Jesse Hunt (@JJHunt10) July 28, 2021
In The New York Times, Rattner wrote how a government loaded with savvy economic and political hands could have gotten this critical matter so wrong? They can not say they were not warned – particularly by Larry Summers, an ex-Treasury secretary and his former boss in Obama government, and less notably by several others, including him. According to a politico poll released Wednesday, the U.S. nationals tired of historic inflation mainly blame the president’s policies. So the rise in consumer prices becomes a burgeoning political problem for Biden and his fellow Democrats.
What are the Figures of Politico Poll?
The poll found sixty-two percent of registered voters believe that the policies of the president are at least slightly responsible for countrywide inflation, compared to only eleven percent who believe Biden is not responsible at all. The numbers are not much better among Democratic leaders, with forty-six percent of Democratic respondents saying Biden is one way or the other accountable and only sixteen percent believing he holds no responsibility. According to the poll, seventy percent of Republican leaders believe Biden is very responsible for the inflation.
How much did consumer prices rise between October 2020 to October 2021?
The poll results reveal that voters are crushingly facing troubles amid inflation, with sixty percent are being concerned and the other twenty-seven percent saying they are slightly concerned. Inclusively, the poll surveyed one thousand nine hundred ninety-eight registered voters between 13th November to 15th November. According to the Bureau of Labor, around 6.2 percent of consumer products prices soared between October 2020 and October 2021. It is the speediest pace of inflation recorded in over thirty years.
Republican leaders launched repeated attacks at the president and Democratic party over inflation and claimed that federal spending is behind the surge in consumer prices. The Republicans and critics of the Biden government cited comments from ex-Clinton and Obama government official Larry Summers after the economists warned earlier in 2021 that a $1.9 trillion Democratic coronavirus relief bill would trigger inflation. As a result, Biden government officials for last some months took a public position of assuring nationals that inflation wouldn’t be a critical and long-term issue. Still, their stance changed a little bit following the release of last month’s report.
During the last few days, the president took a more direct approach and said that supply-chain and inflation are significant issues for the whole country. The president may be receiving colossal criticism, but ex-president Donald Trump signed off around $1 trillion more in coronavirus relief spending than president Biden, and inflation was already on the way to rise before Biden took office in January 2021. In addition, Democratic leaders are now promoting their $1.75 trillion social spending proposal to solve inflation.
Why the price of gasoline remains high?
On Wednesday, Reuters reported that analysts at top rating agencies don’t believe the spending bill will contribute to nationwide inflation since spending would extend more than ten years and paired with tax hikes. The president sent a letter to the head of the Federal Trade Commission (FTC) yesterday and asked for an investigation into why the prices of gasoline remain high. According to AAA, the average cost for one gallon of gas in the United States is up over sixty percent from 2020.
Rattner, who donated thousands of dollars to the 2020 presidential campaign of Biden, requested the president to come clean with voters about the actual impact of his spending plans on inflation like the Build Back Better plan, which is likely to add $800 billion or more to the deficit over the upcoming five years. Despite many warnings about over-increasing the economy, the federal officials passionately downplayed inflation issues during the spring and summer. Recently, the president said that his spending plans would cut inflation because more individuals would participate in the economy.
The White House responded to the remarks to Fox News defending the American Rescue Plan. A White House official said that the American Rescue Plan saved the country from the economic crisis, helped millions of Americans back to work, and helped make sure U.S. families had money in their pockets from rising wages and tax cuts. The official added that it does not make increasing prices because of the issues regarding the global supply chain, affecting nations across the world, any less frustrating for Americans. Still, there are no doubts about the most substantial economic recovery in the country’s history. In addition, it is a historic vaccination effort that helped keep Americans and children safe.