The Stagflation President

Another month, another bad report. On October 13 the Bureau of Labor Statistics announced that consumer price inflation, at an 8.2 percent annualized rate, was higher than expected through September. Americans continue to endure the worst inflation in four decades. They continue to experience a decline in real average hourly earnings. They continue to tell pollsters that the economic recession has arrived. Blerina Uruci, an economist at T. Rowe Price, does not like what she sees. “This is very troubling,” Uruci told the New York Times. “The trend is very troubling.”

Not at the White House. It doesn’t see any troubles. According to President Biden, the most recent BLS data are superfluous. After all, everybody already knows that “Americans are squeezed by the cost of living: that’s been true for years, and they didn’t need today’s report to tell them that.” As a matter of fact, Biden said in a statement, rising costs are “a key reason I ran for President.” And anyway, the situation is under control. “My policies—that Democrats delivered—directly tackles [sic] price pressures we saw in today’s report.”

End of story, thank you all very much, nothing to see here, move along, move along.

Just a minute. Biden’s reading of recent economic history is filled with evasions, half-truths, and “yarns.” They deserve comment and rebuttal. I don’t remember Biden staking his 2020 candidacy on inflation. He couldn’t have. The inflation hadn’t happened. It didn’t arrive until the spring of 2021. By which time Biden was living—during weekdays, at least—at 1600 Pennsylvania Avenue.

Nor do I recall Biden warning the country about the coming threat of rising prices. To the contrary: Varsity Joe was captain of “Team Transitory.” The “temporary” inflation would subside, he and his teammates argued, as kinks in the supply chain got worked out and the Federal Reserve tightened the money supply.

They were wrong, of course. Inflation persisted. By the winter of 2022, Biden was blaming high prices on corporate greed and “Putin’s price hike.” Now he says inflation is the fault of the opposition party. No reason is provided; this president isn’t into

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