As new economic data showed prices climbed a shocking 9.1 percent year-to-year in June, New York Times economic policy reporter Alan Rappeport lamented Republicans “seizing” the issue on the front of Friday’s Business section: “G.O.P. Seizes on Inflation, Putting Democrats in Peril.”
Triple-digit gasoline bills. Bulging hamburger prices. An unplanned Fourth-of- July holiday.
The prices are increasing at an alarming rate, the most dramatic development in over 40 years. This has made Republicans very vocal just months before the midterm elections. With control of Congress very much in play, Republicans are A flurry of advertisements promoting economic chaos and dark feelings is a major investment. They want to make inflation an obstacle for Democrats and President Biden.
Rappeport couldn’t avoid how the inflation issue was killing the administration in polls. When Republicans weren’t “seizing,” they were latching:
….Treasury Secretary Janet L. Yellen has acknowledged that the pandemic aid package contributed to inflation by spurring demand in the economy. Last month, she admitted that she was “wrong” to describe price increases as “transitory.”
Republicans see this as evidence. Democrats and the Biden Administration misled voters, mishandled economy, and claimed — despite strong labor markets and other indicators of economic health — that America is at the brink of economic collapse.
Even though Joe Biden is president and his party controls both houses of Congress, Rappeport suggested further inflation fallout, including a recession, might be the fault of….the Republican Party talking about it in political ads?
Economists are concerned about the impact of this.The political debate may make it more difficult for the central bank’s to arrange a soft landing.It cools down the economy and does not cause a recession If the spread of advertising campaigns raises inflation fears.
As inflation worries rise and people expect more price increases, workers may be forced to ask for higher pay raises. These employers may raise prices for the services and goods they offer to offset their increased labor costs.
A left-leaning economist with the Center for Economic and Policy Research (unlabeled), made the same observation.
[Dean]Baker stated that such an upward spiral of wages is unthinkable because wage growth is slowing. However, it’s possible for the Fed to make unneeded interest rate increases due to the inflation hysteria.
Baker was described as being nonpartisan even though he co-authored books with Jared Bernstein (Biden economist) and other titles. Markets can be progressive: the end of loser liberalism
Rappeport identified conservative organizations and individuals accused of (gasp!) trying to (gasp!) “tie inflation to Mr. Biden’s policies.”
Hot Air’s Ed Morrissey mocked the paper for making “the argument that Republican campaign ads could be both inflationary recessionary,” and argued “The impact of Federal Reserve monetary policies, high prices themselves, energy costs and shortages, and other natural market conditions will have much more impact on consumer spending than a few weeks of political ads.”