Friday, December 17, 2021
Inflation is good for you, peasant
A month ago, when MSNBC said inflation is a good thing, I said, well, that’s MSNBC screwing with reality. Brian Williams was the perfect fit for the prevarication news channel.Since then, Biden has told the media bosses to talk up his successes. Given that he’s lost the War on Terrorism, surrendered our border, and killed more people with covid than his predecessor did, that leaves them the economy to chat up.
CNN trotted out, “Why inflation can actually be good for everyday Americans and bad for rich people.”
You don’t have to be Liz Warren or Bernie Sanders to know that is untrue. The upper 1% have seen their net worth sky rocket. The S&P 500 is up 50% in the last 2 years even with the covid crash in the stock market in February 2020.
That was the first of many attempts by CNN to paint a smiley face on the Venezuela-ing of the economy by Biden.
News Busters reported, “Over the course of two weeks, the cable network’s coverage of oil and gas prices shifted from 77% negative to 79% positive.”
CNN drooled over a 4-cent drop in price in the last week while ignoring the dollar-plus rise since Biden was, um, elected.
Gasoline prices are at a 7-year high.
Rachel Martin of NPR gushed over inflation.
Martin said, “Even though that’s obviously hitting a lot of us hard, there could be a bright side here in the form of higher wages. The Conference Board, a nonprofit that conducts economic and business research, says businesses are expected to increase pay an average of 3.9% in the next year.”
Producer prices are up 9.6% in the last year. That is a solid indicator of what will happen to that raise next year
By the way, wages rose 4% in 2019 without inflation. That’s your economy under President Trump — who left Biden with 1.4% inflation.
Another argument is that inflation comes with economic recovery.
Inflation is at a 39-year high. In that time we’ve had 3 recessions, including the 2008-2009 debacle. Nothing came close to this.
Paul Krugman of the New York Times is a Nobel-winning economist who invariably is wrong about economics. His Election Night prediction of a global depression and stock market crash upon the election of Donald Trump as president in 2016 is a moment in history he will never live down.
Even he had trouble spinning inflation as a positive.
He wrote, “I believe that what we’re seeing mainly reflects the inherent dislocations from the pandemic, rather than, say, excessive government spending. I also believe that inflation will subside over the course of the next year and that we shouldn’t take any drastic action. But reasonable economists disagree, and they could be right.”
Raising interest rates could stop inflation, but that would send unemployment skyrocketing.
I have a better idea. The government caused this. You want to end inflation? End everyone’s COLAs. Make the bureaucrats suffer inflation first-hand. We will see inflation deflated in no time flat.