Janet Yellen’s Latest Excuse Is Targeting Americans
(ConservativeSense.com) – Inflation averaged 2.1% from 2016 through 2019, dropping to 1.4% in 2020 after the onset of the COVID-19 pandemic. In 2021 and 2022, as recovery began and took hold, levels spiked to 7% and 7.7%, respectively, with June 2022 showing an index as high as 9.1%. So, on Wednesday, December 30, when Stephen Colbert, host of “The Late Show with Stephen Colbert,” asked guest Janet Yellen, the US Treasury Secretary and a former chair of the Federal Reserve, to explain “simply and clearly” what happened to drive inflation rates over three times higher, Yellen’s reply seemed to target the American people she’s supposed to serve.
Yellen talked about Biden entering office, facing record-high unemployment numbers of close to 7%. She claimed the administration implemented policies to induce a rapid recovery and bring unemployment numbers down to a near-record low, at 3.7% in November. Additionally, the economist said rapid employment recovery wouldn’t normally generate inflation, but the special circumstances of COVID conspired to keep people isolated in their homes for nearly a year, not spending on services, and cutting back on goods, many by necessity.
Don't blame the Biden Admin printing trillions of dollars: @SecYellen tells @StephenAtHome the real reason inflation is out of control is because Americans are "splurging" on goods; "and, remember, Russia has conducted a brutal war against Ukraine" pic.twitter.com/d0xbhA7sbH
— Tom Elliott (@tomselliott) December 1, 2022
Once they had some physical and economic freedom, Americans began to spend money. Yellen said people “wanted to buy grills and office furniture.” She mentioned how people working from home started “splurging” on new technology and other goods, and the market sectors, just beginning to recover, “couldn’t keep up with demand.”
In economics, a supply shortage during a demand increase can result in inflation, according to US Bank. Yellen also pointed to the Russian invasion of Ukraine, raising fuel and food prices globally.
Yet, critics have repeatedly pointed out that a glut of money supply in an economy, as from the three Economic Impact Payments issued during the pandemic, played a role in overheating the economy and setting off inflation — something Yellen neglected to mention. Additionally, some cited Nobel Laureate Economist Milton Friedman, who said only the government creates inflation, never consumers.
Markets rose Wednesday when the Federal Reserve announced interest rate hikes would slow based on the latest data showing a slowdown in inflation. While speaking with Colbert, Yellen alluded to the Federal Reserve balancing inflation control while avoiding a recession by cooling the economy through raised interest rates.
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