Recently, Democratic leaders have taken to blaming these record-high rates of inflation and energy prices on what they call corporate greed, but even the former top economic adviser for President Barack Obama has stated that there is practically zero evidence that corporations deserve to be blamed for the economic hardships that are currently being dealt with.
This past Thursday, Bloomberg stated: “Many Democrats blame price-gouging companies for the worst surge in Americans’ cost of living in more than a generation. But economists, including several who are left-leaning disagree.”
“Corporate power is playing likely a very small role in the inflation that we’re seeing right now,” stated a Harvard professor and former chair of President Barack Obama’s Council of Economic Advisers, Jason Furman, to Bloomberg.
Furman also made the claim that the “primary solution has to come from the primary cause of inflation, which is demand is way too high.”
Fact-checkers previously with the Associated Press have stated that one particular reason as to why demand is too high is that there is far too much money in the economy as a result of government spending under the current administration.
“Government spending has been a clear factor behind rising consumer prices, though it’s not the only one,” highlighted the AP back in March. The news source also highlighted that many economists have stated that President Joe Biden’s $1.9 trillion American Rescue Plan “caused inflation to run higher than it otherwise would.”
“But the problem is that Biden pumped more money into the economy than it could handle. Administration officials said before the relief package was passed that the greater risk was do too little to help the economy than to do too much,” reported the AP. “The implicit risk was inflation, though the tradeoff was faster hiring and stronger growth.”
All the while, House Speaker Nancy Pelosi (D-CA) has slammed the blame for these insanely high gasoline and food prices at the feet of large businesses. Her solution to the issue is more government control, which seems to include plots to set in place price controls for oil and gas,
“We need to have a bright light of transparency on how companies are making big profits at the expense — and this is in the energy sector, at the expense of the consumer,” claimed Pelosi on Sunday. “And we also are having the same kind of hearings … in the Agriculture Committee on how we can increase competition, again, so that we can lower food prices.”
Critics claim that Democratic leadership is merely tossing out “excuses” for the ordeal that has taken place on their watch.
“Inflation is at record highs, gas prices are soaring, shelves are empty, the economy is in shambles, and voters have only House Democrats to blame for it,” stated Congressional Leadership Fund Press Secretary Cally Perkins.