As former Obama economist, Steve Rattner said – Biden’s nearly $2 trillion stimulus is the “original sin” of inflation. Even for a Keynesian economist like Rattner, the Biden stimulus legislation was far too much, and it’s widely thought that a leading cause of inflation is large stimulus packages that pump tons of money into the economy – often labeled “just printing more money”. Of course, when there’s more of something, the formerly limited amount then loses value.
A reporter stated, “18 months ago when the president took office, inflation and gas prices starting rising.”
White House Press Secretary Karine Jean-Pierre responded, “18 months ago the president signed the American Rescue Plan”
The reporter also noted that it has been about 18 months since gas prices began rising, which sounded the alarms that inflation had set in.
The Biden administration has been able to dodge many claims that the economy is currently in a recession. Typically, a recession is simply defined as ‘two consecutive quarters with negative GDP growth’, and this has been the definition for centuries. Typically, people view inflation through the lens of good in the market costing more than they used to – indicating that currency is worth less than it previously was.
However, the Biden administration chose to dwell on the fact that job growth in the United States hasn’t seen two quarters in a downward trend. Of couse, the main factor for this is the amount of people who lost their jobs during COVID, and are simply returning to work.
Job growth has also since slowed down in recent months. Unless the economy as a whole can turn around, we will be looking at a recession in even the most nuanced and technical terms.