As we’ve said many times on this show: Americans are smarter than Joe Biden thinks. No matter how many displays of cognitive dissonance by Mr. Biden or lies or — to use a word I don’t like to apply to presidents but must in this case — outright lies, Americans get it right. You just can’t tell the public there isn’t inflation when prices for food, groceries, electricity, gas and cars are skyrocketing. Even with the recent drop in gas prices, they are still up 26% over the past year. As a result, workers were forced to take a 3.4% pay cut during this period. That’s why I don’t blame the railroad workers who are demanding higher wages. They are just trying to reach higher prices. They do not control government spending and monetary capital. They are victims of very bad policies.
Mr. Biden’s zero-inflation “celebration” on the White House lawn is a slap in the face to these people. When he says he “inherited” a financial crisis and turned it into a “revival,” that’s just wrong. People know this. In fact, he inherited a V-shaped revival from President Trump and turned it into a crisis. No amount of James Taylor songs are going to change that. The economy grew at around 6.5% in the first quarter of 2021, with inflation around 1.5%. So far this year, the economy has shrunk into negative territory, and there may be more to come. The Atlanta Fed’s GDP tracker has slipped for the third quarter from 2.6% to just 0.5%. The CPI is up 8.3% from a year ago, and of course people are feeling this in their bones and budgets. The Cleveland Fed’s median CPI, a very useful measure of core inflation, is now at 6.7% after rising month-on-month, and as the economy sinks into recession, we are experiencing a price-wage spiral embedded in the economy. Milton Friedman called this “deflationary recessionToday we call it “stagflation” and the Biden Democrats are now at war with the Federal Reserve.
BANK OF AMERICA WARNS NEW LOWS FOR S&P 500 AS ‘INFLATION SHOCK IS NOT OVER’ President Joe Biden on Saturday urged major G20 energy producers with excess capacity to boost production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC and its partners to increase oil supply. (AP Photo/Evan Vucci/AP Newsroom) The former continues to spend and borrow like there’s no tomorrow while the Fed tightens the money. This is not good. Real inflation is three to four times that i fedThe 2% target and the Biden team give Jay Powell & Co. no alternative. from tightening even more aggressively, which will hurt the economy even more, which frankly is not what anyone wants, including me. Instead of opening up all energy resources or cutting taxes or removing business regulations, the Bidens are shutting down regulators, raising taxes, and marching toward big government socialism with the massive regulatory onslaught of central planning. For now, the supply side is dead, while Democrats scratch every radical, progressive programmatic itch they can. Think of it this way: the economy has no oxygen. His veins are completely blocked, and Mr. Biden keeps saying that’s not the case, but the facts speak for themselves. Then again, Americans aren’t stupid. Now, hear from a top Biden ally. See it for yourself: HILLARY CLINTON: “This by-election is going to have a lot of energy from women and men who don’t want the government, they don’t want politicians like Abbott or anybody else coming into their lives. Enough with the nonsense of sending these poor Venezuelans to Martha’s Vineyard or excusing a former president who has stolen classified information.” CLICK HERE TO GET THE FOX NEWS APP Fox News host Brian Kilmeade discusses inflation, the midterm elections and the FBI raid on Trump on ‘Kudlow.’ With the greatest respect, Madam Minister, these left-wing causes are not going to drive the by-elections. Of course, I respect the voters who agree with you, but this election will be an inflation election, a recession election, economic election. There are many issues in the air, but none will be as dominant in November as America’s economic descent. Let me end on an optimistic note. Biden’s failed policies will change. Why; Because the vast majority of people know they need to change. Men and women of good faith and common sense are going to change them simply because people know that change is absolutely necessary to make America great again. That’s why the cavalry is coming and that’s my riff. This article was adapted from Larry Kudlow’s opening commentary in the September 16, 2022 edition of “Kudlow”.