Democratic politicians have lately accused so-called predatory capitalism of record-high prices and oil prices.
However, even Barack Obama’s former senior chief strategist believes there is little to no proof that companies are to blame for the current economic troubles.
So Many Progressives Have It Wrong
“Many progressives blame price-gouging firms for the greatest spike in Americans’ cost of living in well over a century,” Bloomberg announced on Thursday. “However, academics, including some on the left, differ.”
“Corporatism is likely playing a very tiny part in the current inflation,” said Jason Furman, a scholar and former head of President Obama’s Bureau of Economic Analysis, to Bloomberg.
“The major solution needs to come from the main proxy for inflation, which is simply too large a market,” Furman added.
— Daily Wire (@realDailyWire) May 19, 2022
According to past Associated Press fact-checks, one explanation for the excessive demand is the market has too much cash in it, as a result of the Biden administration’s government expenditures.
The Associated Press reported in March that “government expenditure has been an obvious factor behind increasing consumer costs, albeit it is not the only one.”
Many analysts said President Biden’s $1.9 trillion American Rescue Plan “led inflation to run faster than it would have otherwise,” according to the publication.
“The issue is Biden injected more money into the local economy than it could handle.”
“Before the assistance package was completed, government officials stated “doing too little to support the economy was a larger danger than doing too much,” according to the Associated Press.
“Inflation was an implied danger, but the tradeoff was quicker hiring and higher growth.”
Nancy Pelosi is Lost
Nevertheless, House Speaker Nancy Pelosi (D-CA) has laid the blame for rising food and gasoline prices squarely on the shoulders of big business.
More government control is her response, which includes proposals to establish price restrictions for gas and oil.
So let me get this straight. Robertson is going to tackle inflation by printing MORE money and flooding the economy with handout money?
Have I understood correctly?
Budget 2022: Cost-of-living payments added to $6b health budget – NZ Herald https://t.co/zf5fc2yL4C
— Malakai™️ (@saltyreigns) May 19, 2022
On Sunday, Pelosi said, “We need a strong light of clarity on how firms are earning tremendous profits at the expense, and this is in the energy industry, at the expense of the public.”
“We are holding similar hearings in the Agriculture Committee on how we can encourage competition, once again, to cut food prices.”
Critics claim that Democratic politicians are simply making “excuses” for the inflation that has occurred while they have been in office.
In a statement to The Daily Wire, Congress and Senate Fund Communications Director Cally Perkins said, “Price levels remain at historic highs, gas prices are climbing, stores are empty, the economy is weak, and Americans have only House Democrats to thank for it.”
“Rather than making excuses, Democrats should rethink their woke ‘tax the rich’ program that got us into this issue in the first place,” she continued.