Many Democrats and their friends in the media are celebrating the latest economic news that inflation was lower than expected last month.
The consumer price index released Thursday was 0.1% lower in June from May, putting the 12-month rate at 3%, around its lowest level in more than three years.
The Biden administration took a victory lap over the news.
“Today’s report shows we’re making significant progress fighting inflation, with prices falling last month and wages rising faster than prices,” Biden said on X. “But there’s more to do. While Republican officials side with big corporations, I’ll keep fighting for the working people who built our country.”
Today's report shows we're making significant progress fighting inflation, with prices falling last month and wages rising faster than prices.
But there’s more to do.
While Republican officials side with big corporations, I'll keep fighting for the working people who built our…
— President Biden (@POTUS) July 11, 2024
Some liberal media personalities also used this as proof that Biden’s economic plan is working.
“I’m gonna bang this drum until it tears,” said Chris Hayes of MSNBC, “but this has been the best macro-economic stewardship of any administration *and Fed chair* of my lifetime.”
“Also: time for a rate cut!” Hayes added.
Also: time for a rate cut!
— Chris Hayes (@chrislhayes) July 11, 2024
It seems that those praising the latest numbers are forgetting that the goal of the Federal Reserve is 2%, a full percentage point lower than where we are currently. That means prices are still higher and rising at a much faster rate than the Fed wants.
It should also be noted that the average yearly inflation rate under former President Donald Trump was 1.9%, while under Biden the average is 5.7%.
I know any campaign is going to try and spin news to their benefit, but the truth is most Americans aren’t buying it. Everybody in the economy feels high prices. Whether you’re rich, middle class, or lower class, you see the effects of high prices in your daily lives. Whether you own a big business or a small business, whether you are in manufacturing or the service industry, you can’t help but notice the higher costs.
When you see the current inflation, just understand: It didn’t have to be this way.
While some of the inflation was no doubt caused by supply chain issues under COVID, most of it was caused by bad policies from the current regime. Biden and the Democrats did not have to pass the American Rescue Plan in 2021 or the Inflation Reduction Act in 2022. Biden did not have to limit America’s energy production to push green initiatives. And Congress as a whole should not have made post-COVID levels of spending the new normal.
The Biden administration is also claiming that wages are rising, so inflation isn’t as big of a problem as Republicans say. The facts show otherwise. Over the three and a half years of the Biden presidency, prices are up 19.4% and average weekly earnings up closer to 17%. Wages are up, but inflation is higher.
The good news is that despite the current economic problems — there are some solutions.
America needs a real pro-growth economic agenda that focuses on simplifying the tax code, decreasing government regulations, cutting federal spending, enforcing work requirements in welfare programs, and unleashing domestic energy production. This, in line with a Federal Reserve keeping rates high enough, would lead to a more productive economy and lower prices.
All told, Donald Trump has a big opportunity to turn things around when he wins in November.
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on X @Yaffee
