Leer en Español
This Tuesday President Biden held a press conference to talk about inflation, which is now at its highest point in 40 years. Unfortunately, his speech was based on a long list of alleged culprits and no solutions. Putin, COVID, Sen. Rick Scott (whom President Biden could not even remember which state he represents), underpaying businessmen, and the “ultra MAGA” agenda, were some of the names on the list of culprits given by the President. But the truth is that the reason for inflation is Biden’s agenda.
As for Putin, inflation in the United States had already reached 7.5% per year in January, before the invasion of Ukraine. In fact, since October 2021, when it jumped from 5.4% to 6.2%, inflation has been on a bad streak for six consecutive months of increase and showing figures above 6%. Energy prices, in particular, have risen in the last 12 months by 32%, all this has started long before the invasion of Ukraine.
As for COVID, it must be said that it is precisely the huge spending that has been carried out by this government (largely using the COVID excuse) that has skyrocketed inflation. We are talking about trillions of dollars that the administration had claimed would be used to help Americans, but most of these funds ends up being spent on bureaucracy. For instance, of the $1.9 trillion from the American Rescue Plan, only about 1% went to vaccines.
Because of inflation, the average American household will spend an extra $5,200 this year, which is $433 per month. While the government spends huge amounts of money and most families see no benefit, one thing that is clear every day is how inflation is affecting Americans. It is time for the President to stop blaming everyone and accept the mistakes of his administration so that he can work on a real solution, which of course starts with reducing spending.
This article originally appeared in El American’s newsletter on May 11, 2022. Subscribe for free here!
Vanessa Vallejo. Co-editor-in-chief of El American. Economist. Podcaster. Political and economic analysis of America. Colombian exile in the United States // Vanessa Vallejo. Co-editora en jefe de El American. Economista. Podcaster. Análisis político y económico de América. Colombiana exiliada en EE. UU.