Did you know that inflation is over? This is the message from Paul Krugman, John Harwood, and other deranged journalists.
Krugman, who is known as the Jim Cramer economist, is now taking a victory lap and claiming that he was correct about inflation being “transitory”.
Folks who claimed inflation would last ~3 months and go away on its own are now declaring they were right because it lasts (at least) 20 months and seems to (hopefully) be fading after 400 basis points of rate hikes. https://t.co/DFZW3bhNPj
— Marc Goldwein (@MarcGoldwein) January 23, 2023
There is shamelessness and there is Krugman in that position. He’s now declaring that the burden of proof regarding the current situation is on those who claimed inflation was not temporary, nearly two years after it began. Although I know he gets his groceries delivered, and doesn’t look at the bill because he is a wealthy man I wonder where he lives.
This transient definition of the word is not being accepted by anyone. The summer of 2021 saw an inflation spike. It’s now January 2023 and inflation seems to be lower because it is being compared with the previous year’s elevated year-over-year baselines. If inflation rises from 2 to 9 percent, but you start comparing the current inflation to the nine percent number, and not to the original two percent number you will see a decline in inflation.
In reality, Americans still suffer from inflation that is around 15% higher than it was when Biden took office. And the inflation crisis has never been temporary. Krugman is aware of this because he originally believed there would be no inflation crisis.
He’s the Jim Cramer of economists. pic.twitter.com/KCH06rI9tg
— Bonchie (@bonchieredstate) January 23, 2023
However, the talking points went out because John Harwood chose to follow the same path as Krugman.
“People are finally experiencing relief from what had been a relentless rise in living costs.
“After false dawns in 2021-22 — when price hikes slowed only to accelerate again — signs that inflation is genuinely turning a corner have begun to accumulate.”
— John Harwood (@JohnJHarwood) January 23, 2023
What is the “relief?” he referring to? Food prices are at an all-time high. It is best to forget about airfare at this time. You don’t need to worry about the rise in home heating costs and other energy costs. Although used car prices are down, they still remain high compared to when Biden took office.
This is the real game being played. Krugman and Harwood are trying to make you forget the past. They want you to compare your current situation to the mid-2022 period, not to the end of 2020. This is not how politics works. Because of the policies of the current president, Americans are now in a position where they have to pay for basic necessities.
The Federal Reserve raised interest rates to seven percent to offset the fact that inflation is decreasing (core CPI is slightly down). Although grocery prices haven’t increased at the same pace, you won’t be able to purchase that house or car you want. Do I have to get excited about this? Give Biden a big pat on the back. It’s absurd gaslighting.