To save President Joe Biden’s life, the leftist pundits of media spin economic disasters to their advantage. The Bloomberg Opinion actually attempted to convince Americans that high inflation was a positive thing.
Bloomberg Opinion columnist Karl Smith actually had the audacity to publish a nonsensical article headlined, “America Needs Higher, Longer-Lasting Inflation.” His sub-headline was just as ridiculous: “The benefits of moderately rising prices and wages outweigh the costs.” His main argument was that “a higher rate of inflation, and correspondingly higher wage growth, could be a net positive for the economy.” Such commentary is absurd given that the Senate Joint Economic Committee (JEC) just conceded that if “high inflation persists, it will harm American families by decreasing their purchasing power.” But in Smith’s view, economists and central bankers should cease wondering whether inflation will deflate back to the Federal Reserve’s two percent target and consider “whether the Fed should strive to make 4% inflation permanent.” Uh, what?
Smith was quick to point out in his lede paragraph that Biden “has repeatedly assured Americans that the sharp uptick in inflation they are experiencing is temporary — in the language of economists, transitory.” Smith’s own publication slapped down the idea that inflation would be “transitory.” Bloomberg News reported Oct. 12 that “Federal Reserve Bank of Atlanta President Raphael Bostic said this year’s inflation surge is lasting longer than policymakers expected, so it’s not appropriate to refer to such price increases as transitory.” [Emphasis added.]
Washington Post Heather Long, economic correspondent tweeted Oct. 13 that “[i]nflation was up 5.4% over last year in September – the highest rate in 13 years.”
BREAKING: Inflation was up 5.4% over last year in September – the highest rate in 13 years.
The September price increase was 0.4%, compared to 0.3% August.
Inflation is still driven by gas, food, and other goods. While used cars prices have fallen slightly, they remain 24 percent higher than last. pic.twitter.com/8cN1eHaBvQ
— Heather Long (@byHeatherLong) October 13, 2021
Smith said one of the reasons for his pseudo-economic position is “debt dynamics.” Essentially, “Higher rates of inflation make debt more expensive, but easier to manage,” Smith said. Euro Pacific Capital Chief Economist Peter Schiff did not take kindly to Smith’s wild arguments, and blasted the article as “nonsense.” Schiff tweetedOctober 11th:
These are the types of lies that mainstream media propagate as expert economic analysis. A higher #inflation rate is not good for the economy and can be especially harmful for average Americans. This is not temporary, and it will continue to get worse.
This is what mainstream media portrays as economic expert analysis. Higher #inflationIt’s not good for the economy and is especially harmful to Americans. This isn’t temporary, and it will continue to get worse. https://t.co/Q0QoohPw8O
— Peter Schiff (@PeterSchiff) October 11, 2021
The Senate JEC’s analysis of the inflation situation appears to be more based in reality. Smith ought to take notice:
Consumer demand is rising, which is driving up consumer prices. Businesses are also being forced to produce more while their supply chains suffer disruptions or labor shortages. This causes American families to be faced with both higher prices and lower quality lives.
Conservatives are being attacked. For more information, contact letters@bloomberg.net and demand it distance itself from Smith’s wild arguments about inflation.
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