| What about money printer go brrrrrr?
Inflation seems like a very appropriate subject for the sitting U.S. president to discuss during this address, since the nation's consumer price index rose at an annualized rate of 7.5% in January, the highest since February 1982.
Here are some quotes from Biden's speech that involve inflation:
"I think I have a better idea to fight inflation: Lower your costs, not your wages," he stated.
"That means make more cars and semiconductors in America, more infrastructure and innovation in America, more goods moving faster and cheaper in America, more jobs where you can earn a good living in America," Biden added.
"Instead of relying on foreign supply chains, let’s make it in America."
He went on to detail highlights of a plan that involved cutting prescription costs and lowering energy bills, while also pushing for a $15 minimum wage.
While reducing costs and increasing wages sounds great, my biggest takeaway is how in the world is the president or anyone else going to do that? He didn't mention anything about the money printer being turned off.
While the president does not run the Federal Reserve, it seems out of touch to avoid bringing up the subject when one is talking about inflation.
This also doesn't consider energy inflation. With the recent Russian invasion of Ukraine, in tandem with crippling economic sanctions levied against Russia, I can't envision a scenario where prices go down.
Both of these nations affect commodity prices, for example gas (petrol), in a massive way. The European Union gets close to 40% of its natural gas from Russia.
If Biden can successfully deliver on all the objectives outlined in his recent SOTU, I will be shocked. The concept of lowering prices seems to be in another universe.
While reducing inflation seems like a more realistic goal, I am skeptical that the president or anyone else can make that happen in the near future. | 