The Biden administration is feeling the pressure as Americans are becoming increasingly anxious for answers and solutions to the inflation situation. On Wednesday, President Biden commented at a Chicago fundraiser that inflation issues threaten to disband the democratic majority in the House of Representatives and lead to dire consequences for democrats during November’s midterm election.
The New York Post quoted President Biden saying, “We can’t let this happen, guys. … It’s going to be hard because inflation is going to scare the living hell out of everybody.”
The Biden administration is fearful that history will repeat itself and Biden will be in the same proverbial boat as former President Jimmy Carter.
Carter served one term as president as he was quickly ousted due to similar issues, including rising inflation and extreme fuel and gas prices. As history shows, Democrat Carter was replaced with Republican candidate Ronald Reagan.
As it stands, the Biden administration has not been successful in dousing the inflation rate, which is currently at a four-decade high, nor communicating to voters what the long-term plan is.
Biden has been quick to point out the factors surrounding inflation, claiming the Russian invasion of Ukraine has played a significant role in rising prices.
To emphasize one positive, Biden noted, “Our inflation rate is lower than almost any other … industrial nation in the world. We’re in a situation where we find ourselves with supply chain problems and Putin’s gas tax in the extreme.”
Biden’s outlook concerning inflation has been described as “magical thinking” and “overly optimistic.” Treasury Secretary Janet Yellen has vehemently disapproved of Biden’s laissez-faire attitude towards inflation, stating that White House aides have “downplayed” the situation.
President Biden and his chief of staff, Ron Klain, commented on the administration’s desire to move forward and prevent inflation from casting a harmful glare on Biden’s presidency. Their plan involves Biden and the administration as a whole, emphasizing to the American people what they claim to be the administration’s accomplishments, notably the pandemic relief payments, infrastructure funding, and lower unemployment rate.
It is unknown whether inflation will begin to cool before candidates kick off major campaigns to engage voters before the November midterms. Bloomberg reported that those with close ties to the president are remaining optimistic that prices will lower and inflation will begin to cool by the summer.
However, such an ambitious goal may be unattainable, as Goldman Sachs Group Inc. economists anticipate inflation remaining steady at around 7% (the annual goal is 2%) come November’s election day.
The Biden administration has made some efforts to curb inflation. As gas prices rose, Biden released crude oil from U.S. stockpiles, made efforts to relieve backups at U.S. ports, and supported plans to incentivize the construction of new U.S.-based plants. The Biden administration also considers utilizing antitrust policies and other tools to combat alleged price gouging by meat processors.
While Biden is making moves to combat the effect of inflation on American citizens, many believe more still needs to be done.
U.S. Democratic Senator Dick Durbin of Illinois stated that Biden is “doing a lot, but I want him to do more.” Durbin did not discuss possible relief policies or methods that could help or that he would like to see the White House implement.