Last week’s State of the Union Address: Biden’s Misleading Claims on Inflation and Corporations
Factual Analysis of Biden’s Address and Inflation
Last week, President Biden delivered his 2024 State of the Union Address, which was filled with misleading claims and gaslighting about the state of the economy. One of the key topics Biden touched upon was inflation, where he attempted to place blame solely on corporations, ignoring the broader factors that contribute to rising prices.
Contrary to Biden’s claims that inflation is solely caused by corporate greed, the reality is that inflation is a result of both fiscal and monetary policies. Biden’s own fiscal policies, coupled with damaging Fed monetary policies, have played a significant role in the current inflationary environment.
While Biden and his mouthpieces have attempted to shift blame onto various external factors, such as blaming consumers or even outwardly blame Putin, it is crucial to recognize the role played by his own policies in eroding the purchasing power of the working and middle class.
The Downstream Impact of Inflation and Shrinkflation
Inflation manifests through various effects, among which is the phenomenon of shrinkflation. Shrinkflation occurs when corporations, compelled to maintain profitability amidst rising prices, reduce their product size while keeping the headline prices the same. This results in consumers receiving less product for their money.
By blaming corporations for shrinkflation, Biden is contradicting himself. If the economy is growing and corporations are thriving, as Biden often claims, higher wages and operational costs for businesses are direct outcomes. It is illogical to both celebrate economic success and chastise businesses for the consequences of that success.
It is important to note that corporate profits have not seen a disproportionate increase during this period. In fact, Bureau of Economic Analysis data indicates a shrinking corporate profit margin during the inflationary period under Biden. Therefore, the notion that corporations suddenly became greedy or were solely responsible for inflationary pricing is simply baseless.
Questioning Biden’s Task Force and the Threat to Free Markets
In a move that highlights Biden’s authoritarian tendencies, he recently announced a task force, led by the FTC and the Justice Department, aimed at corporate pricing. While cracking down on illegal pricing is a reasonable objective, the concept of targeting “unfair” pricing raises concerns. “Unfair” is a subjective label that enables government intervention in the pricing mechanism, enabling further picking of winners and losers.
Gaslighting consumers by singling out corporations and blaming them for inflation only adds insult to injury. In reality, consumers are well aware of the causes of inflation and the subsequent rise in prices. They understand that the responsibility lies not only with corporations, but with the government and its policies as well.
The Need for Independent Analysis
Amidst the noise and subversion of economic facts, independent analysis is crucial for understanding the complexities of the economy. Honest evaluation leads to a more informed narrative and helps individuals make educated decisions regarding their finances and economic well-being.
