When we shut down the economy in 3/2020, it was inevitable that we'd have some inflation as things restarted. Overall, the cycle has been milder than we had any right to expect — no mass starvation, no depression. What is the story in which it could have gone better than this? — Jesse Rothstein, a professor at the University of California, Berkeley and a former Labor Department chief economist during the Obama administration
When we shut down the economy in 3/2020, it was inevitable that we'd have some inflation as things restarted. Overall, the cycle has been milder than we had any right to expect — no mass starvation, no depression. What is the story in which it could have gone better than this? — Jesse Rothstein, a professor at the University of California, Berkeley and a former Labor Department chief economist during the Obama administration
GOP report shows inflation hurts low-income Americans the most, blames Democrats for price jumps
  • Republicans on the Joint Economic Committee on Monday warned that inflation is having an outsized effect on low-income Americans.
  • Sen. Mike Lee, Republican of Utah and ranking member of the committee, blamed Democrats for the widespread jump in prices.
  • The GOP report represents the latest attempt by the party to highlight rising prices less than one year before the 2022 midterm elections.
  • Democrats argue that pent-up demand and overwhelmed supply chains after the worst of the Covid-19 pandemic are to blame.
The report from the committee’s Republicans represents the latest attempt by the party to highlight the risks of rising prices less than one year before the key 2022 midterm elections. With 34 seats in the Senate and all 435 seats in the House contested, the GOP hopes it can retake at least one chamber as a check to Democrats’ current monopoly over Congress and the White House.

... While inflation has returned under Democratic control of Congress and the White House, its cause and remedy are up for debate.

Democrats argue that pent-up demand and overwhelmed supply chains after the worst of the Covid-19 pandemic are to blame and that inflation – to an extent – was inevitable. After a year of reduced spending, wide swaths of the economy closed and ruined travel plans, Democrats say it’s no surprise to see prices rise as Americans demand a return to normal en masse.

“When we shut down the economy in 3/2020, it was inevitable that we’d have some inflation as things restarted,” Jesse Rothstein, a professor at the University of California, Berkeley and a former Labor Department chief economist during the Obama administration, wrote on Wednesday.

“Overall, the cycle has been milder than we had any right to expect — no mass starvation, no depression,” he added on Twitter. “What is the story in which it could have gone better than this?”

Progressives add that the combination of a $1 trillion infrastructure package and a $1.75 trillion bill to tackle climate change and improved access to child care will keep price increases in check and encourage more Americans to return to the labor force.


The White House Supply Chain Disruptions Task Force, President Joe Biden’s team working to ease logistics problems across the U.S., said on Nov. 3 that the current shipping headaches underscore the importance of the legislation.

“For too long, our country has underinvested in the roads, railways, ports and projects that propel goods movement,” the White House team wrote. “With the Infrastructure Investment and Jobs Act, we can make the fundamental changes that are long overdue for our ports, rail and roads. This is how we build back better, with government bringing workers and businesses together to leverage American ingenuity to tackle the challenges brought on by a global pandemic.”
Read the full article: https://www.cnbc.com/2021/11/15/gop-report-shows-inflation-hurts-low-income-americans-the-most-blames-democrats.html