https://thehill.com/opinion/finance/4158523-joe-bidens-odd-but-revealing-claim-about-inflation/
President Biden brandished a brand-new claim in his recent talk about the wonders of the Inflation Reduction Act:
“Now, one reason we’ve seen inflation fall by two thirds without losing jobs is corporate profits are coming back down to earth. The excesses are being eliminated by the corporations.”
In other words, “excess” company profits are dropping, and that has brought price increases under control. By Biden’s logic, if Corporate America went bankrupt, the economy would really be humming.
Hasn’t anyone ever explained to Biden that it is profits that lead to investment, to productivity gains and to higher wages? Apparently not. Biden thinks inflation stems from corporate greed, not too much spending — no wonder the White House got it so wrong.
Biden’s anti-business mindset reminds us of the Obama years, during which the country experienced the slowest-ever recovery from a recession. Liberals like Paul Krugman continue to argue that former President Obama’s failure to boost U.S. growth stemmed from an undersized stimulus program. No, the problem was that Obama stomped on the green shoots of economic revival with a tsunami of regulatory changes that confounded employers and decision-makers, stymied investment and prolonged the downturn.
We are seeing much the same today. Biden keeps talking about building the economy from the middle out; I doubt even he knows what he is talking about. In reality, he is building the economy from the top down, with the government at the tip of the pyramid, issuing ever-more rules and making significant decisions about the allocation of capital and direction of industry.