In the world of American economics, transparency is paramount. Economist Gary Cohn, a Democrat, has taken a courageous stance against the Biden administration’s portrayal of the economy, refusing to let President Joe Biden pull the wool over Americans’ eyes.
Cohn, an American businessman and philanthropist who is a Democrat, served as the 11th Director of the National Economic Council and chief economic advisor to President Donald Trump from 2017 to 2018. Those were the years Trump’s policies were born that made America great again.
CLICK HERE TO JOIN OUR NEWSLETTERThe Illusion of Economic Prosperity
The Biden administration has been zealously advocating a narrative that paints a picture of economic prosperity, aiming to secure Biden’s re-election bid. However, beneath the surface lies a narrative that is more bark than bite. During his recent State of the Union address, Biden downplayed the significance of inflation, boasted about the creation of “15 million new jobs,” and pointed fingers at corporations for the soaring prices of goods, which he attributes to “shrinkflation.” That’s a term he probably heard an economist use once, and he took it.
Deconstructing the Myth of Inflation
However, the reality of our situation shows Joe Biden is sugarcoating the situation. Cohn dispelled the illusion that Biden had painted, particularly with regard to inflation, during his appearance on CBS News’ “Face the Nation.” Cohn explained the compounding effect of inflation, emphasizing that it’s not merely about the current figures but the cumulative impact over time. He pointed out, “Inflation has a compounding effect. Meaning, as you look at inflation year over year, you’re adding up those numbers. You’re not starting at a zero every year,” Cohn said. “If we had 6% inflation last year and now we have 4% inflation, that’s 10% inflation.”
He went on to point out that there is a cumulative effect with inflation, meaning that your groceries that cost $100 in the past now cost you $125 for the same amount of items because the increases in inflation add up.
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VISIT OUR YOUTUBE CHANNELThe Reality Check on Rising Prices
Cohn emphasized the crucial reality that while inflation may appear to shrink, the prices of goods do not retreat; they continue to ascend, albeit at a slower pace. This distinction is pivotal, as it exposes the disparity between Biden’s optimistic portrayal and the harsh reality on the ground. Groceries, for instance, now cost Americans 25% more than they did in January 2020, despite Biden’s assertions of inflation easing.
The Public’s Sentiment
The distaste for Biden’s lack of economic management is palpable, as reflected in numerous polls. The amalgamation of inflation and soaring interest rates, justified by the Federal Reserve to combat inflation, forms a toxic mixture for Biden’s prospects of re-election. Because in the end, when it gets down to brass tacks, people vote with their wallets. And Donald Trump has a track record of making your wallet bigger.
The Struggle of Everyday Americans
Cohn sympathized with the plight of everyday Americans grappling with the inflation crisis. He highlighted how the erosion of purchasing power and the exorbitant interest rates have rendered the dream of homeownership unattainable for too many. The escalating costs of living, coupled with the astronomical cost of investing in the future through homeownership, have left a bitter taste in the mouths of many Americans.
In the end, Gary Cohn’s candid assessment serves as a wake-up call, urging Americans to see beyond the facade of political rhetoric and confront the harsh realities of the economic landscape. As the nation navigates through turbulent economic waters, transparency and accountability remain paramount in steering towards a brighter future.
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