The GOP Party and The Left Go Head-to-Head Over Inflation Regulations

Daily Report June 28,2024

Trump and Biden Go Head-to-Head Over Inflation

During Thursday night’s CNN presidential debate, Joe Biden and Donald Trump got into a heated argument about whose administration was ultimately responsible for the high levels of inflation the US economy is currently facing and when they first appeared.

“Let us examine the things that President Biden inherited and the things that President Trump left behind,” Biden said in answer to the opening question from moderator Jake Tapper. “Our economy was in complete collapse. Many people were dying as a result of a pandemic that was handled so poorly.”

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“The economy fell apart. No employment. 15% was the new unemployment rate. It was awful,” stated Biden. “The reason we’re in this problem now is a combination of what I was left with and corporate greed,” the president continued.

In response, Trump said, “We have the greatest economy in our country’s history.” “We’ve never performed this well. Everyone was in awe of it. Other nations were imitating us. After we were impacted by COVID, we made the required financial investments to prevent a repeat of the 1929 Great Depression.” “He did a terrible job, and our nation is dying from inflation. It’s killing us completely,” the former president continued.

According to data from the Bureau of Labor Statistics (BLS), inflation was trending about 2% through 2019 before taking a sharp turn once the COVID pandemic struck. In May 2020, as the world economy shut down, inflation dropped to 0.12% before rising beyond 1% in the second half of the year.

When President Biden started his administration in January 2021, the annual rate of inflation was 1.4%. As 2021 came to an end, inflation increased and hit 7% in December after rising to 5% in May due to supply chain delays caused by the epidemic.

The labor market’s recovery contributed to the increase in inflation as well; by October 2020, unemployment had dropped to 6.8% from its peak of 14.8% in April 2020, during the height of the lockdowns. At 4%, the jobless rate is at its highest point in more than two years.

Russia’s invasion of Ukraine and increased government expenditure in 2022 contributed to the inflationary pressures that finally caused inflation to soar and reach a 40-year high of 9.1% in June of that year.

Since then, the Federal Reserve has held interest rates at their highest level in 23 years despite the fact that inflation has decreased and reached 3.3% in May 2024, which is still higher than the 2% target rate.

During the debate, Biden and Trump argued about inflation once more. Trump claimed, “He caused the inflation, and it’s killing Black families and Hispanic families and just about everybody.” People are dying as a result. They are no longer able to purchase food.”