President Biden, one year ago today:
We also know that as our economy has come roaring back, we’ve seen some price increases. Some folks have raised worries that this could be a sign of persistent inflation. But that’s not our view. Our experts believe and the data shows that most of the price increases we’ve seen are — were expected and expected to be temporary. . . .
Now, I want to be clear: My administration understands that if we were to ever experience unchecked inflation over the long term that would pose real challenges to our economy. So while we’re confident that isn’t what we are seeing today, we’re going to remain vigilant about any response that is needed. . . .
Your first ques- — part of the question was?
Q It was on inflation. You mentioned unchecked inflation.
THE PRESIDENT: Yeah. There’s nobody suggesting there’s unchecked inflation on the way — no serious economist. That’s totally different. [Emphasis added.]
In those remarks a year ago, Biden argued that another giant spending bill was the right response to concerns about inflation:
If we make a prudent, multi-year investments in better roads, bridges, transit systems, and high-speed Internet, and a modern, resilient electric grid, here’s what will happen: It breaks up the bottlenecks in our economy. Goods get to consumers more rapidly and less expensively. Small businesses create and innovate much more seamlessly. If we increase the availability of quality, affordable childcare, eldercare, paid leave, more people will enter the workforce.
These steps will enhance our productivity — raising wages without raising prices. That won’t increase inflation. It will take the pressure off of inflation, give a boost to our workforce, which leads to lower prices in the years ahead.
So, if your primary concern right now is inflation, you should be even more enthusiastic about this plan.
While the president doesn’t control the inflation rate, he does control what he says about the inflation rate. No one makes Joe Biden go out in front of the cameras and make these sweeping, hubristic declarations. He could have struck a more cautious and humble note when he was discussing the economy one year ago. At the time of Biden’s remarks, the Consumer Price Index inflation rate had already started creeping up from 1.4 percent in January to 5.4 percent in June. There was a reason people were starting to worry.
But time and again, Biden chooses to make assurances, predictions, and boasts that aren’t so likely to pan out. And then when someone reminds Biden of his prediction, he gets snippy:
LESTER HOLT, NBC NEWS ANCHOR: You said inflation was going to be temporary. I think a lot of Americans are wondering what your definition of temporary is.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Well, you’re being a wise guy with me a little bit. I understand that’s your job.
HOLT: When can Americans expect relief from this soaring inflation?
BIDEN: According to Nobel laureates, 14 of them that contacted me and a number of corporate leaders, it ought to be able to start to taper off as we go through this year. In the meantime, I’m going to do everything in my power to deal with the big points that are impacting most people in their homes.
After getting in trouble for a wildly overoptimistic prediction, Biden doubled down with another wildly overoptimistic prediction that “it ought to be able to start to taper off as we go through this year.”
The inflation rate when Biden said that was 7.8 percent. It is now 9.1 percent.