Decline in Inflation Observed During Trump's Presidency, However, Biden's Presidency Witnesses Quadrupling of Inflation Rates
In a reprinted article from CFIF.org, Timothy H. Lee, Senior Vice President of legal and public affairs at the Center for Individual Freedom, sheds light on the inflation trends during President Joe Biden's tenure.
The opinions expressed by the columnist are their own and do not necessarily represent the views of the organization or its actions.
According to the article, Biden Administration policies, such as massive Covid stimulus spending and aggressive regulatory moves that constrained energy supply, have been linked to consumer price spikes. Inflation, initially portrayed as nonexistent or transitory by the media, rose all the way to 9% by the summer of 2022.
Joe Biden was the President of the United States during this inflation rise, from 1.4% in January 2021 to 5.2% in September 2021, peaking at 9% in the summer of 2021, and then declining to 3.0% by January 2022. Inflation eased painfully slowly from 9% to 3.0% when Biden departed, having peaked at 9% during his tenure.
Mainstream media and their favoured economic pundits have treated inflation differently depending on the political affiliation of the President. The same pundits who saw only silver linings while inflation soared to 9% under Biden's tenure are now wringing their hands with inflation below 3%.
Consumer spending accounts for approximately two-thirds of the American economy. The rise in inflation has significantly impacted the cost of living for many Americans. By the time Biden left office, Americans were paying over $1,400 more per month for the same basket of goods and services compared to January 2021.
Public perception of inflation influences consumer confidence, business investment, interest rate expectations, and potentially interest rate decisions. Media coverage remained gentle towards the Biden Administration, using terms like 'cooling' when rates ticked a tenth of a percentage point lower, even though prices were still climbing faster than paychecks.
However, it's worth noting that inflation has actually declined under Donald Trump since he began his second term, from 3.0% in January of this year to 2.9% today. An honest press is essential for an informed electorate and sound policy choices, and the disparity in media coverage of inflation depends upon which party holds the White House.
As of August, inflation is at 2.9%. While this is a decline from the peak experienced under Biden's tenure, it still remains a concern for many Americans. An informed electorate and sound policy choices depend in part upon an honest, competitive marketplace of ideas.
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