The leftist pundits in the media are twisting themselves silly trying to spin the terrible economic situation in an attempt to save President Joe Biden. A new Bloomberg Opinion op-ed actually tried to argue that high inflation is a good thing for America.
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 economics correspondent Heather Long 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.
— Heather Long (@byHeatherLong) October 13, 2021
Prices rose 0.4% in Sept, up from 0.3% in August
Gas, food and goods continue to be key drivers of inflation. Used car prices fell slightly but remain 24% higher than last year. pic.twitter.com/8cN1eHaBvQ
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 tweeted Oct. 11:
This is the type of nonsense peddled by the mainstream media as being expert economic analysis. Higher #inflation isn't good for the economy, and it's particularly harmful to average Americans. Unfortunately it's not transitory and it will get much worse.
This is the type of nonsense peddled by the mainstream media as being expert economic analysis. Higher #inflation isn't good for the economy, and it's particularly harmful to average Americans. Unfortunately it's not transitory and it will get much 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 should take note:
Rising consumer demand for goods is increasing consumer prices, and it is also putting pressure on businesses to increase production while they are constrained by supply chain disruptions and labor shortages. When this occurs, American families are simultaneously faced with higher prices and shortages, lowering their quality of life.
Conservatives are under attack. Contact letters@bloomberg.net and demand it distance itself from Smith’s wild arguments about inflation.
