Krugman Says He Was ‘Wrong About Inflation’, Summer Talks About Recession, Criticizes Biden Over ‘Half Truths and Lies’ – Bitcoin News Economics
In mid-June, red-hot inflation reared its ugly head in America again, with the latest CPI report from the US Bureau of Labor Statistics indicating that inflation in June rose at the fastest pace in more than 40 years. US President Joe Biden has been in office for 18 months now, and media reports are starting to suggest that his administration was wrong about inflation and that his administration has made “questionable claims about peak inflation.” Meanwhile, the Biden administration and some reports indicate that there are “signs that inflation has peaked” in the United States, where commodity and oil prices have fallen recently.
‘I was wrong about inflation,’ says Paul Krugman, ‘Larry Summers claims that ‘the odds are probably better than halved that a recession will start next year’
On July 13, Bitcoin.com News reported in its June CPI report that the measures of inflation observed for that month reflected a 9.1% year-over-year increase. The increase in inflation in America recorded in June 2022 rose at the fastest pace since November 1981. The White House noted at the time that the CPI report was already out of date the day the Bureau of Labor released the data.
After the latest CPI data, reports indicated that West Virginia Senator Joe Manchin has ignored Biden’s climate bill due to inflation concerns. While the incumbent president has been heavily criticized for inflation, on July 15, White House correspondent Alexander Nazarian asserted in an editorial that inflation had become “Biden’s political nightmare.”
Inflation has jumped so high that the Nobel Prize-winning American economist, Paul Krugman, wrote an article for the New York Times in which he noted that he was “wrong about inflation.” Krugman spoke specifically about the US bailout and mentioned that some economists have warned that it will lead to higher inflation. Krugman said that like many Keynesian economists they were more “comfortable” about the stimulus package.
“As it turns out, of course, this was a pretty bad call,” Krugman wrote on July 21.
Krugman also quickly mentioned Larry Summers, a former economic advisor to former President Barack Obama. Summers spoke about the recession recently at the Aspen Security Forum. “The odds are probably better than half that the recession will start next year,” Summers explained. The economist also touched on the prices of crude oil and commodities, highlighting the problems of the “geopolitical situation”.
“I think that will depend a lot on what happens outside the economic sphere,” Summers said at the Aspen Security Forum. “It will also depend on how lucky you are and how skilled your team is [Federal Reserve] It turns out that … they have a very difficult problem of equilibrium in the position of monetary policy, given the situation in which we find ourselves.”
Biden’s “half truths and outright lies” have been called
Some recently published reports have begun to call out “the Biden administration’s dubious claims about peak inflation.” For example, Kevin A. Hassett, author of nationalreview.com, excuses Biden and “a new low ever for economic connectivity.”
“Biden claims that two consecutive negative quarters are not a recession,” Hassett writes. Hasset, senior advisor to National Review Capital Matters, concluded, “Students of economic history know better. In fact, there will be absolutely no controversy when writing this year’s story, and this history deserves to be taken into account as the spinning machine spins.” .
On July 20, 2022, two opinion contributors to The Hill, EJ Antoni and Stephen Moore, published a post titled “Biden’s Six Favorite Lies about Inflation and the Economy.” The authors summarize “the most economically consequential deception of the Biden administration.”
The deception includes telling people that “anyone who earns less than four hundred thousand dollars will not be taxed,” which turned out to be false. The authors criticized the White House for saying inflation was worse everywhere except in the United States, and when Biden said the economy stalled when he took office 18 months ago. Moore and Anthony Biden are accused of exaggerating as the US president told the press that he is responsible for the most powerful job-creating economy in modern times.
“This is more of an exaggeration than a bold-faced lie,” wrote opinion contributors to The Hill. Finally, the authors gave Biden Flack for saying that American families have less debt and savings under his administration and how Biden has noticed that he is doing his best to bring down gas prices.
“Perhaps none of the half-truths and outright lies should come as too surprising — what should we expect from an administration that first denied inflation, then said inflation was temporary, and then claimed it was just a high-class problem?” Opinion authors conclude.
Meanwhile, Biden is the other Accused By telling people if they are vaccinated they will not get Covid-19, at least four times in the past. However, the US President is currently in isolation due to his illness after taking all recommended vaccinations and boosters.
Moreover, a report in the Wall Street Journal (WSJ) now claims “there are signs that inflation has peaked,” according to specific signals in the US economy. The Wall Street Journal cites Evercore ISI Chairman Ed Hyman when he “pointed to several indicators that 9.1% may have been ahead.”
What do you think of Krugman’s latest article and Summer’s prospects regarding the US recession? What do you think of the criticism that US President Joe Biden gets for his statements about the economy? Tell us what you think about it in the comments section below.
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