Biden warns business owners against price hikes during inflation
Biden Threatens Business Owners Who Raise Prices to Keep Afloat During Inflation
History has a way of repeating itself, especially when we fail to learn from it. In the 1970s, three presidents – Richard Nixon, Gerald Ford, and Jimmy Carter – all struggled with inflation and attempted to control it through price and wage controls. Unsurprisingly, their efforts were unsuccessful.
Now, President Joe Biden seems to have either forgotten or ignored the lessons of that era. Instead of implementing direct price controls, he has taken to the bully pulpit, warning corporations not to raise prices or face consequences. In a recent social media post, Biden declared, “Let me be clear to any corporation that hasn’t brought their prices back down even as inflation has come down: It’s time to stop the price gouging. Give American consumers a break.”
Let me be clear to any corporation that hasn’t brought their prices back down even as inflation has come down: It’s time to stop the price gouging.
Give American consumers a break.
— Joe Biden (@JoeBiden) November 30, 2023
This approach to tackling inflation is reminiscent of tactics used by the mob in a protection racket. Rather than addressing the root causes of inflation, Biden is attempting to strong-arm businesses into lowering their prices. But this strategy ignores the fact that businesses often raise prices in response to rising costs.
Furthermore, Biden’s focus on inflation overlooks the fact that the current inflation rate of 3.2 percent in October is still above the Federal Reserve’s target rate of 2 percent. Simply demanding lower prices from businesses is not a viable economic strategy.
“Listen, Jack, just lower your prices” is a helluva economic strategy.
— Damin Toell (@damintoell) November 30, 2023
Government creates inflation.
Businesses adjust prices to meet the new value of their goods and services with less valuable currency.
Government yells at businesses.
— Being Libertarian (@beinlibertarian) November 30, 2023
This is not the first time the White House has resorted to intimidation tactics to address economic issues. In the past, Energy Secretary Jennifer Granholm demanded explanations from energy companies regarding high gas prices. However, fluctuations in gas prices are influenced by various factors, including seasonal declines and inflation.
Threatening businesses may seem like a quick fix, but it is not a sustainable solution. Biden’s economic policies have already had a negative impact on American prosperity, and blaming corporate America for his failures is misguided. The American people are not fooled by this attempt to appear powerful. It’s time for a new approach, one that doesn’t involve empty threats and misguided optics.
The post Biden Threatens Business Owners Who Raise Prices to Keep Afloat During Inflation appeared first on The Western Journal.
How has excessive government spending, particularly as a result of the COVID-19 pandemic, impacted rent inflation?
Rent inflationary environment is not solely the result of businesses raising prices. It is also influenced by factors such as increased government spending, supply chain disruptions, and the Federal Reserve’s monetary policy.
One of the main drivers of inflation is the excessive government spending that has taken place in recent years. The COVID-19 pandemic led to massive stimulus packages and relief programs, which injected trillions of dollars into the economy. As a result, the money supply increased, leading to a decrease in the value of the dollar and subsequent price increases.
Supply chain disruptions have also played a significant role in driving up prices. The pandemic disrupted global trade and caused shortages in various industries. As a result, businesses have had to pay higher prices for inputs and raw materials, leading to increased production costs. In order to maintain profitability, businesses may need to pass these higher costs onto consumers through price increases.
Additionally, the Federal Reserve’s monetary policy has contributed to inflationary pressures. The central bank has kept interest rates low and engaged in quantitative easing, which involves buying government bonds to inject money into the economy. These measures have the potential to stimulate economic growth, but they also carry the risk of fueling inflation. By flooding the market with excess liquidity, the Federal Reserve has increased the money supply and contributed to rising prices.
Rather than addressing these underlying causes of inflation, Biden is focusing on the symptom – higher prices. By threatening businesses with consequences for raising prices, he is ignoring the realities of the current economic environment. Many businesses are already struggling to stay afloat due to increased costs, and forcing them to lower prices could exacerbate their financial difficulties.
Instead, a more effective approach would be for the government to address the root causes of inflation. This could involve reevaluating fiscal policies to ensure responsible government spending, addressing supply chain disruptions through targeted interventions, and working with the Federal Reserve to implement monetary policies that balance economic growth with price stability.
In conclusion, Biden’s threats to business owners who raise prices to stay afloat during inflation ignore the underlying causes of the current inflationary environment. Rather than strong-arming businesses into lowering prices, a more effective approach would involve addressing the root causes of inflation through responsible fiscal policies, targeted interventions to alleviate supply chain disruptions, and a balanced monetary policy. Only by tackling the true sources of inflation can we hope to achieve long-term price stability and economic prosperity.
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