Biden’s top economic adviser actually attributes the inflation crisis to Biden’s ‘effective response to the pandemic’
Cecilia Rouse, President Joe Biden’s top economic adviser, suggested this week that Americans are facing an economic crisis because Biden has expertly handled the COVID-19 pandemic.
What are the details?
Americans are battling soaring prices across the market in the face of record levels of inflation. But Rouse claimed on CNN’s “New Day” program on Tuesday that the crisis is a net positive because an adequate response to the pandemic has brought about these economic woes.
The remarks came after CNN host Brianna Keilar asked Rouse about some Democrats’ concerns about Biden’s policies. Specifically, Sen. Joe Manchin (DW.Va.) and Larry Summers, a top economic adviser to Barack Obama and Treasury Secretary under Bill Clinton, blamed the inflation crisis on Biden’s spending.
“I wonder, looking back, were Larry Summers and Joe Manchin right about spending and inflation?” Keilar asked.
Rouse responded that she was “not sure what the law is” and blamed the economic problems facing Americans today as being directly caused by the pandemic. When Keilar asked again, Rouse blamed an “effective” pandemic response.
“What we’ve seen is that all the advanced countries are trying to fight inflation, and they have historic levels of inflation. This has been the consequence of putting in place an effective response to the pandemic,” Rouse said, “because while we were supporting households and businesses, guns were shot, which allowed people to start getting out of their homes and getting back to their lives, our chains of supply could not meet this demand.”
” We are not alone ; all advanced countries are tackling it,” she reiterated. “So it’s a consequence of having an effective strategy against the pandemic.”
With each passing month, inflation is moving in the wrong direction.
The Bureau of Labor Statistics revealed on Wednesday that the consumer price index rose 8.3% last month from April 2021, meaning inflation remains at its highest level in nearly 40 years. Inflation rise beat Dow Jones prediction of 8.1%, CNBC reportedand was slightly lower than the 8.5% seen in March.
The San Francisco Federal Reserve published a study in late March, attributing the inflation crisis, in part, to Biden’s spending policies.
“Estimates suggest that fiscal support measures designed to counter the severity of the economic effect of the pandemic may have contributed to this divergence by raising inflation by around 3 percentage points by the end of 2021,” indicates the study.
The study also revealed that inflation is a problem in many developed countries. But the inflation rate in the United States is significantly higher than in these countries.
Due to inflation, Americans should expect to spend “an extra $5,200 this year ($433 per month) over last year on the same consumer basket,” Bloomberg reported.