‘Biden’s America’: Economists Warn Americans to ‘Prepare’ for Years of Inflation Unprecedented in Decades, Report Says

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On Sunday, a new report highlighted the concerns of top economists about the impacts of Democratic President Joe Biden’s massive government spending.

“Americans should prepare for several years of higher inflation than they have seen in decades, according to economists who expect the strong post-pandemic economic recovery to fuel a sharp rise in prices for a period of time. some time, “The Wall Street Journal reported. “Respondents now on average expect a widely followed inflation measure, which excludes the volatile components of food and energy, to rise 3.2% in the fourth quarter of 2021 compared to the previous year. They predict that the annual increase will decline to just under 2.3% per annum in 2022 and 2023. That would mean an average annual increase of 2.58% from 2021 to 2023, bringing inflation to the levels seen last. times in 1993.

The report noted that inflation measures had reached their highest levels since the early 1990s and that the Biden administration might not hike rates until mid-term to avoid further fallout at the polls from policies of administration.

Economists told the newspaper:

  • Joel Naroff, Chief Economist at Naroff Economics LLC: “We are currently in a transition phase. We are moving into a period of inflation and higher interest rates than we have experienced in the past 20 years.
  • Diane Swonk, Chief Economist at Grant Thornton: “Inflation is expected to rise longer and longer, longer than the Fed previously thought. The Fed is now likely to hike rates in the first half of 2023, although some Fed chairmen are ready to respond sooner. “
  • Kevin Swift, chief economist at the American Chemistry Council: “The danger is that the monetary authorities are lagging behind. I’m not saying hyperinflation is just around the corner, just that a lot of things have come together in the past year and the overall cost trend is rising faster than in the past five or 10 years.
  • Swift noted the havoc inflation is having on the construction industry, saying, “It’s disruptive, you can’t be sure what your costs are, if you can stock up or what the costs will be six months from now. . I would hate to be in the construction industry trying to bid on a job when you don’t know what the cost of steel will be in 18 months.

The Biden administration apparently knows that inflation is a serious problem it faces because of its policies. For the weekend of July 4, the administration boasted that it saved Americans $ 0.16 off the cost of the total amount of food they will consume on July 4.

The administration claimed the $ 0.16 in savings was proof that “Biden’s economic plan is working.”

The Daily Wire reported:

The claim that saving Americans a total of $ 0.16 on a very narrow list of items is proof that “the Biden economic plan works” is laughable. Inflation is skyrocketing, the economy has a record quit rate, millions of Americans could soon face evictions, and Biden has suffered numerous disastrous employment reports. Gas prices are higher now than they were under former President Donald Trump and are the highest they have been since 2014. AAA said this week that they expect ” crude oil prices will likely continue to rise after the holidays and until the end of the summer. ” Top Democratic economists have warned that the economy is at serious risk of overheating and driving inflation higher. Eighty-five percent of Americans now worry about inflation. Major investors have also warned that the Biden administration “continues to pour more gasoline on [the housing market] fire ”, which they say“ worsens inequalities ”because“ you end up subsidizing the rich to the detriment of the poor ”.

Larry Summers, who has held senior economic positions in the Clinton and Obama administrations, said in an interview last month that Biden’s policies had dramatically increased the risk of the economy overheating, which “would be difficult. to extinguish the fire without doing much damage. and causing a lot of problems.

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