Gas Prices Joe Biden

Larry Kudlow: This will lead to recession

Joe Biden spoke with the AFL-CIO today in Philadelphia. I hate to oversimplify, but let me play you a sound that captures the gist of his speech. Listen :

Joe Biden: “I don’t want to hear those lies about reckless spending anymore. We’re changing people’s lives.”

Well, with all due respect, Mr. President, you engaged in reckless spending with your $2 trillion spending mistake in March of last year that sparked terrible inflation. The economic greybeards in your own party told you not to. They told you it was okay trigger inflation.

They were right. You were wrong. Janet Yellen was wrong. Jay Powell was wrong and you changed people’s lives – for the worse.

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Gas Prices Joe Biden

A driver walks past a sign showing gas prices above $6.00 per gallon on May 20, 2022 in San Rafael, California. (Photo by Justin Sullivan/Getty Images/Getty Images)

You like to talk about middle-income people and you want to be the most pro-union president in history, but it’s precisely those workers whose lives have taken a huge turn for the worse because of your inflation tax, who, of course, they fall most heavily on necessities like food and gasoline. These prices are skyrocketing. You launched it.

I know you never want to talk about it and when you do you blame everyone but your politicians but before anyone heard of Vladimir Putin going to Ukraine your excessive spending and borrowing which was monetized by the The Fed’s Money Printing we have now landed more recently with a consumer price index of 8.6%, with gasoline up 49%, food up 10%, electricity up 12% and new cars up 13%. I’m just saying, sir. These are life changing numbers.

Middle-income workers will likely experience an increase in their cost of living of around $5,000 in the coming months. They can’t afford it. Their inflation-adjusted real wages fell by 3%.

In other words, your reckless spending means people work harder and get paid less. Do you look in a full length mirror and what do you see? You see the very body that decimated the middle class with an inflationary tax.

Today’s producer price index was just as bad as the CPI, maybe even worse. Turnover increased by 10.8%. Goods prices up almost 17%, food: 13%, energy: 45%.

What’s worse is that the 3-month change is faster than the 12-month change, which means inflation is getting worse. There is no peak here and your Federal Reserve representative Jay Powell has no choice but to raise interest rates faster and higher than anyone in government has. would have deemed necessary. This will lead to recession.

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It’s already crashing stocks. Inflation expectations are rising according to the latest NFIB small business survey and the New York Fed survey.

I know you are playing the blame game, Mr President. Next to Vladimir Putin you run against something called “MAGA”. The only “MAGA” I know of, however, is your MEGA economic policy mistakes, because alongside your inflationary spending spree, and for that matter, let’s not forget that you wanted an extra $5 trillion social bill dollars. Thanks to Joe Manchin and Kyrsten Sinema, you didn’t get it, but you wanted it. You pushed for it.

So please stop bragging about deficit reduction. You have never met a payer in your entire life.

Today in Philadelphia you proudly boasted about your attempts to raise taxes at every level. Thirty-six tax increases in your FY23 budget, eleven on energy alone, $3.5 trillion in total – what a great idea! We go into a recession and you raise taxes. We need more energy, but you want to tax all fossil fuel companies, which brings me to my last point.

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You decimated the oil and gas industry. Your environmental regulations have strangled fracking, drilling, pipelining, exporting and refining LNG. You canceled the Keystone XL pipeline. You canceled the drilling in Alaska. You canceled drilling in the Gulf of Mexico. Your EPA established restrictions that emasculated not only the fossil trade, but infrastructure of all kinds.

Currently, oil is grossly undersupplied, as is gasoline. These are self-inflicted wounds. You have only yourself to blame. Please come back to that full length mirror, but you know what, sir? The cavalry arrives.

This article is adapted from the opening comment by Larry Kudlow in the June 14, 2022 edition of “Kudlow”.

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