Is inflation Biden’s or Trump’s fault? The answer isn’t so simple, economists say

by | Jul 3, 2024 | Financial

Former President Donald Trump, left, and President Joe Biden face off in the first debate of the 2024 presidential campaign, in Atlanta, June 27, 2024.Andrew Harnik | Getty Images News | Getty ImagesThe recent U.S. presidential debate saw both candidates trade barbs related to the economy. High pandemic-era inflation was among the grievances.”He caused the inflation,” Trump said of Biden during the June 27 debate. “I gave him a country with no, essentially no inflation,” he added.Biden countered by saying inflation was low during Trump’s term because the economy “was flat on its back.””He decimated the economy, absolutely decimated the economy,” Biden said.But the cause of inflation isn’t so black-and-white, economists say.In fact, Biden and Trump are not responsible for much of the inflation consumers have experienced in recent years, they said.’Neither Trump nor Biden is to blame’Global events beyond Trump’s or Biden’s control wreaked havoc on supply-and-demand dynamics in the U.S. economy, fueling higher prices, economists said.There were other factors, too.The Federal Reserve, which acts independently from the Oval Office, was slow to act to contain hot inflation, for example. Some Biden and Trump policies such as pandemic relief packages also likely played a role, as might have so-called “greedflation.””I don’t think it’s a simple yes/no kind of answer,” said David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, a left-leaning think tank.”In general, presidents get more credit and blame for the economy than they deserve,” he said.More from Personal Finance:Trump may roll back student loan forgiveness programs if electedWhat a Supreme Court ruling could mean for Biden’s ‘billionaire tax’Biden, Trump accuse each other of ruining Social Security, MedicareThat Biden is seen as stoking high inflation is due somewhat to optics: He took office in early 2021, around the time inflation spiked notably, economists said.Likewise, the Covid-19 pandemic plunged the U.S. into a severe recession during Trump’s tenure, pulling the consumer price index to near zero in spring 2020 as unemployment ballooned and consumers cut spending.”In my view, neither Trump nor Biden is to blame for the high inflation,” said Mark Zandi, chief economist at Moody’s Analytics. …

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[mwai_chat context=”Let’s have a discussion about this article:nnFormer President Donald Trump, left, and President Joe Biden face off in the first debate of the 2024 presidential campaign, in Atlanta, June 27, 2024.Andrew Harnik | Getty Images News | Getty ImagesThe recent U.S. presidential debate saw both candidates trade barbs related to the economy. High pandemic-era inflation was among the grievances.”He caused the inflation,” Trump said of Biden during the June 27 debate. “I gave him a country with no, essentially no inflation,” he added.Biden countered by saying inflation was low during Trump’s term because the economy “was flat on its back.””He decimated the economy, absolutely decimated the economy,” Biden said.But the cause of inflation isn’t so black-and-white, economists say.In fact, Biden and Trump are not responsible for much of the inflation consumers have experienced in recent years, they said.’Neither Trump nor Biden is to blame’Global events beyond Trump’s or Biden’s control wreaked havoc on supply-and-demand dynamics in the U.S. economy, fueling higher prices, economists said.There were other factors, too.The Federal Reserve, which acts independently from the Oval Office, was slow to act to contain hot inflation, for example. Some Biden and Trump policies such as pandemic relief packages also likely played a role, as might have so-called “greedflation.””I don’t think it’s a simple yes/no kind of answer,” said David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, a left-leaning think tank.”In general, presidents get more credit and blame for the economy than they deserve,” he said.More from Personal Finance:Trump may roll back student loan forgiveness programs if electedWhat a Supreme Court ruling could mean for Biden’s ‘billionaire tax’Biden, Trump accuse each other of ruining Social Security, MedicareThat Biden is seen as stoking high inflation is due somewhat to optics: He took office in early 2021, around the time inflation spiked notably, economists said.Likewise, the Covid-19 pandemic plunged the U.S. into a severe recession during Trump’s tenure, pulling the consumer price index to near zero in spring 2020 as unemployment ballooned and consumers cut spending.”In my view, neither Trump nor Biden is to blame for the high inflation,” said Mark Zandi, chief economist at Moody’s Analytics. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
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