Is Inflation Biden's Fault?

I got asked this question on stream, and here was my answer. I hope you enjoy!

Thanks for watching everyone. Feel free to leave questions, comments, and your general thoughts about my analysis or this issue in the comments below.

#Economics #Inflation #Biden

0:00 Did the stimulus cause inflation?
7:43 What is causing inflation?

[garywebb]

anybody who pushes this talking point I can automatically write off as ignorant in economics

[Matt_Kole]

15:50 you may have misspoke but wouldn’t “travel restrictions” decrease tourism and consumer spending, decreasing inflation? Correct me if I’m wrong idk

[manuelpujol]

The question should be why such an anomaly in consumer behaviour happened. It’s kind of obvious that such behaviour causes price increases.

Increasing money supply at never seen rates while having the economy on lockdown (slow velocity of money) will eventually blow up when the economy opens (velocity of money not only goes to normal but probably overshoots), therefore a huge spike of consumption together with low supply. This is not Bidens fault but the FEDs, most was during Trumps era and he complained about interest rate increases.

Giving checks to people as COVID relief also increases aggregate demand without any increase in supply. Partly Bidens policy, Trump the same.

Also the shutting of the keystone pipeline (demand of petrol was low during lockdown but consequences come now) and this massive expenditure package will produce price increases.

I don’t think it’s Bidens fault, but I think you are understating how much he influenced the price increases.

[pogo]

Econoboi with all the recent Ws from Biden, how would you rank his performance on the economy and in general?

[charleschen]

There's numerous causes for inflation, including the fed, China, war, covid, demographics, wages, etc. But what is the admin actually doing besides passing the buck to the fed? Suspending Gas tax, ending tariffs, envoronmental restrictions, zoning, regulations, taxes, etc, etc could help... but this admin has essentially done nothing

[therussiantrollnetwork]

Its hard to say that the inflation was worth it because now we have more jobs . We still don't know how high inflation will go. It might go to 100

[johnathanvale]

When spending bills keep getting signed, and tax revenue stays the same. They have to get the money somehow. Borrow it, or print it. And not everyone wants to lend all the necessary dollars to fund this nonsense.

[fire_rises]

I havnt watched yet but I wanted to say this video is going to be how I judge if you're a political hack or an honest actor

[Yor_gamma_ix_bae]

You think the American rescue plan inflation would end pretty far

[WeAreShowboat]

The problem with relying on “expert economists” opinion now on whether ARP caused inflation is that many of them said it wouldn’t cause any significant inflation before ARP was launched. Why should I believe their opinion now when their previous predictions were wrong?

You didn’t have to be an economist to know that making money machine go will make inflation increase.

[theguywhoknowsall]

Love this channel. But why don't you see the change to spending habits on durable goods as a consequence of people being forced to stay home, not go to concerts, events, etc. If the US government had not done any lockdowns/forced the closure of events or other nondurable expenditures, wouldn't that have reduced (to a large extent) the imbalance of durable and nondurable, and cant this blame for inflation be put at the feet of people forcing the lockdowns (obviously without lockdowns spending habits still would be altered as many would still stay home and shift spending to durable goods). Still the extra shift + ARP adding to the problem is what i think people are upset about. I feel like most people who who against the lockdowns weren't just heartless, but saw people (like Biden) denying the totality of the consequences/externalities while only stating the benefits or protection. I just personally thought things would shake out where the costs (inflation being a huge one) would be greater than the benefits

[jkevo]

Econoboi when you dump huge amounts of money into an artificially paused economy what would we expect to happen? Well first of all we would expect people who are going to retire in the next few years will be incentivized to retire now rather than later witch will lower the unemployment rate imediatly but will also depress the employment rate while removing valuable expirence and connections from the economy. The employment rate is further depressed as we pay people more to stay at home than to work. This legacy can be seen today where companies are hemorrhaging money to try to retain the bear minimum of employees. I mean my local walmart is paying people with no work experince 20.25 an hour to work for them.

Further more when people make a windfall they tend to splurge on nice to haves putting strain on the supply chain. Already weakened by a lack of employees, expirence, and connections the supply chain starts to fall apart.

Econoboi this is why I can't put my trust in economists or other public policies experts becuase when they tell us things like the inflation is transitory they are either Lieing straight to my face or they are so willfully ignorant of reality that I'm better off asking billy bob off the street about the economy.

You in particular are trying to push the failure of biden's polices on other factors which anybody off the street could tell you are the fualt of said policy. It seems to me either your disconnected from the working man like most socialists or your just ideologically biased. If I'm wrong I'd like to hear how so.

[davieb]

Yes. No maybe. Partly. Should have joined Russia.