Former President Barack Obama’s Chief Economist Jason Furman spoke out against Biden’s economic policies over the weekend.
Furman appeared on CBS’s Face the Nation with host Margaret Brennan to discuss Biden’s current plan to reduce inflation. Brennan asked Furman if he thought Biden’s focus on taxing the wealthy and the Democrat congress’s new “anti-price gouging” bill would do anything to actually fix the economy.
Furman told Brennan that he thinks anti-price gouging bill was essentially useless and could actually increase the already severe shortages facing our country. He said, “I don’t think, though, that these anti-price gouging bills would do much to bring inflation down. They just increase the type of shortages that consumers probably hate even more than the high prices.”
Brennan then followed up, asking about his criticism of the Democrat theory that corporate greed is not a major factor of inflation. “You were quoted as saying corporate greed is a bad theory of inflation. Is that another way of saying that what Democrats are talking about is just a gimmick?”
Furman took no time confirming the Democrats’ plans to reduce inflation were total junk, saying, “I think it’s pretty gimmicky, these price gouging bills, because, you know, he’s got a lot of extra demand. What happens when demand goes up? Prices go up.”
He then said that the real cure for inflation is something that politicians don’t have to stomach for. “There’s an old saying the cure for high prices is high prices. That’s a little bit of a painful thing to deal with, but it’s what elicits the additional supply. It brings more producers into the market, and it’s what brings prices down and we need to let that process work. You try to interfere with it, you’re going to make things worse. We tried that in the seventies, it was a big failure. We shouldn’t be repeating it again.”
Former President Ronald Reagan managed to solve massive inflation the first time with that same strategy. He spiked inflation so high that loans became unreasonable, increasing prices temporarily but ultimately saving the economy.
Do you think Bidens or the Democrats have the stomach to follow Reagan and spike inflation during an election year? Or do you think they will try and wait until 2023 regardless of who wins?