Bidenflation Peaked Over 18%
Everyone is the US realizes that inflation has been way more than the Biden administration has published. Recent academic studies show Bidenflation peaked over 18%! Biden apologists wonder why people don’t believe the government. Biden economic apologist Paul Krugman tries to explain to those he considers dumber than he and Biden.
It’s true that most Americans have a negative view of the economy. But people don’t directly experience the economy. What they directly experience are their own financial circumstances — and most Americans are feeling relatively positive about their own finances.
Pay no attention to those pesky “consumer sentiment” surveys of American sthat say otherwise. Anyone remember the “Misery Index” from the 1970s—the combination of inflation and unemployment? The Misery Index was created by the late economist Arthur Okun. Right now, because the official unemployment rate remains very low and inflation has come down from its near 9 percent high last year, the published Misery Index is fairly modest compared to the 1970s. But is that a real number in comparison?
But not so fast.
Lawrence Summers, the liberal economist, former Treasury Secretary, and former president of Harvard, combines with three other economists on a new Working Paper from the National Bureau of Economic Research (NBER) to compare the 1970s inflation to Bidenflation. Why not a direct comparison? The government changed the rules on how it measures inflation and the new rules vastly understate the real inflation rate for many American consumers—especially anyone using credit or buying a house or car. And this is the reason many consumers are sour on the economy.
Here’s Summers explaining the most eye-popping finding of the paper:
If we make an effort to reconstruct the CPI of Okun’s era—which would have had inflation peak last year around 18%, we are able to explain 70% of the gap in consumer sentiment we saw last year.
Here’s the chart:
Revised Inflation Measure Designed to Fool America.
In other words, if we used the old methodology, Biden’s Misery Index would be in historically bad territory. Let’s look a little deeper at things not captured in the new inflation calculation rules the government put in place:
In summary, Bidenflation Peaked Over 18%, but the current administration pretends otherwise. Americans see costs of food, rent, cars, mortgages, and everything else up a cumulative 20%-30% since 2021. Biden says pay no attention to the things you can no longer afford. The increase in employment numbers reflects almost all jobs are part-time–those having to take a second job. But pay no attention!