Inflation is bad. Infrastructure is good.
Infrastructure is the key achievement that could save President Joe Biden’s presidency.
Inflation is a force majeure that can eliminate it.
A government report released on Wednesday indicated that inflation is at its highest level since the early 1990s.
Biden’s problem is that there isn’t much he can do about it, according to CNN’s Kevin Liptak, who wrote:
minimum Gas price hikes are one of the most frustrating phenomena for any White House because they affect nearly every American but are often immune to presidential action.
What causes prices to rise – With the global economy recovering from the pandemic, the price of crude oil is rising dramatically. Gas prices in the United States have soared to a seven-year high of $3.40 a gallon nationally, flirting with $4 in Nevada, Washington and Oregon. The price hike comes as demand for oil rises again as the Covid-19 pandemic subsides, outstripping supply.
In other words, it is largely at the whim of the market and OPEC.
Biden said inflation should be a reason for more government spending, not less, during an appearance before Democratic activists on Tuesday:
“I know a lot of people don’t feel the progress we’re making in the economy. I get it. I know that gas, groceries, and rent costs seem harder and harder to deal with. This is one more reason why we have to pass my Build Back Better bill.”
This is the second part of his agenda, with new social programs such as global pre-kindergarten programs and action against climate change.
The other “I” word. It’s much better news for Biden on infrastructure spending, which has so far eluded Republican and Democratic presidents. The $1.2 trillion package is about to turn the country into a massive government-sponsored construction site.
Democrats and a few Republicans are joining them now Need to sell Americans about efforts to repair roads and bridges, upgrade the electrical grid and more.
We’ve written here about the infrastructure bill in relation to politics – how progressives have maintained their support in the House of Representatives in an effort to force a vote on the most ambitious social spending bill.
The infrastructure package will fix things that need repair – roads and bridges – and invest in things that need investment – like electric car charging stations and an upgraded electric grid.
It’s a major achievement because previous presidents, like Donald Trump and Barack Obama, couldn’t get it done.
A setback for the Republicans who voted for the bipartisan bill. You know it’s an achievement because the Republicans who voted for it are facing a backlash within their own party.
“So sad that RINO members of the House and Senate gave Biden and Democrats a victory over the ‘Change Infrastructure’ bill,” Trump said in a statement on Sunday. “By the way, RINO is a symbol of the ‘Republican in name only’.”
Trump’s opposition to this bill focuses mostly on politics. He didn’t want Biden to get a “win.”
He said his party members should focus on blaming Biden for inflation by driving new government spending.
“Food prices are going up, milk prices are going up, the price of gasoline is going up… the price of rent, the houses, the wood… everything is going up, the Biden administration is going up,” Cruz said.
How long will this inflation last? Whether the additional spending adds to inflation is an open debate. The occurrence of inflation is an established fact.
Goldman Sachs believes that inflation will get worse before it gets better. Economists who used to think inflation would ease up quickly are now looking for something a bit more lengthy, according to CNN’s Matt Egan.
“Like much of Wall Street and the Federal Reserve, Goldman Sachs was expecting high prices to quickly return to the ground. Now, there is a realization that inflation will continue for much longer as supply struggles to keep pace with rising demand,” he wrote.
While inflation is present and does not go away, it is not expected to be a permanent problem.
Rising prices and the economy aren’t all bad news, according to Summers, who predicted workers would have more power.
“After a long time when the important thing was that workers were looking for jobs, we now have the big thing looking for jobs,” CNN’s Brianna Killar said last week. “This should mean that more of us have more power over our employers, and that will translate into higher wage increases.”
This story has been updated with additional information.