Why Don’t The Biden People Keep It Real About Inflation?

Democratic economist and elder statesman Larry Summers, who worked as Secretary of the Treasury when Clinton was president and was a top economic adviser in the Obama White House, says Biden should come clean about inflation instead of pretending it’s going to go back to normal in no time.

Why would the White House calibrate expectations to be disappointed if inflation persists? Are they trying to fumble 2022 and 2024 away to the Republicans?

As Chris Enloe reports at TheBlaze, Summers recently said, “I don’t understand why so many people in government and elsewhere believe that inflation is driven by bottlenecks and will soon return to normal levels. Of course, there remains uncertainty, but the idea that inflation will return to levels near the Fed’s objective anytime soon appears to be a long shot.”

The Administration’s assurances to the contrary seem like a commitment to appearing deluded by attempting to manufacture truth out of repeated insistence, rather than keep it honest with the people about how long it looks to the experts like inflation will stay.

That does not restore public confidence in the Administration. The only way this makes sense as a strategy is if they think there’s enough chance that the economy pulls through for an easy landing with persisting inflation, that it’s worth it to look right all along about a thing going straight. They might also be calculating that at the pace capital accumulation and sales volume are accelerating globally, some late-stage high-tech capitalism miracle, the production of tangible goods will outpace the growth in the money supply despite the abrupt monetary expansion.

The Trump stimulus seems to have worked, or at least, it appears we got away with it. Biden’s bean counters might have the best guess that they get away with all the rest of what they did this year on top of the Trump term-end emergency stimulus and extra non-coronavirus-related spending Trump did in his term over his predecessor.

Let’s wait around and test the theory out, give it enough time to play out, and see what happens before going ahead and putting the economy to an epic stress test with the Build Busted Businesses Act. Give it enough time, so we don’t confuse any variables, you know, like real scientists. It’s better to be safe than sorry for the economy.