I have a horrible feeling that the Biden presidency may come to be defined by a single quote which will echo down the ages, featuring not just in economics textbooks but becoming a byword for hubris of all kinds. Speaking of his $1.75 trillion ‘Build Back Better’ plan, the President declared last week: ‘Seventeen Nobel prizewinners in economics have said that my plan will ease inflationary pressures’.
Not so fast, Mr Biden. Today, the Bureau of Labor Statistics announced that the Consumer Prices Index (CPI) for October rose to 6.2 percent, higher than expected and the highest rate since 1990, the very beginning of the low inflationary era. For all the extra billions promised in tax credits, and the ‘helicopter money’ which Biden has already showered upon the US population, Americans are facing a real-terms fall in their pay packets. The rate of real earnings growth in October stood at minus 1.2
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