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Krugman Says He Was ‘Wrong About Inflation,’ Summers Talks Recession, Biden Criticized Over ‘Half-Truths and Fibs’

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In mid-June, red-hot inflation reared its ugly head again in America as the latest US Bureau of Labor Statistics report on the Consumer Price Index (CPI) showed that June inflation rose at its fastest rate in more than 40 years. US President Joe Biden has now been in office for 18 months, and media reports are starting to point out that his administration was wrong about inflation, and his administration was making “dubious peak inflation claims.” Meanwhile, the Biden administration and several reports suggest there are “signs that inflation has peaked” in the US as commodity and oil prices have fallen recently.

Paul Krugman says “I was wrong about inflation”, Larry Summers says “The chance of a recession starting next year is over half”.

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On July 13, News reported on the June CPI report, which noted that inflation figures for this month reflected a 9.1% increase year-over-year. The rise in inflation in America, recorded in June 2022, grew at the fastest rate since November 1981. The White House noted at the time that the CPI report was out of date the day the Labor Bureau released the data.

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Following the latest CPI data, reports noted that West Virginia Senator Joe Manchin rejected Biden’s climate bill over concerns about inflation. While the incumbent has been heavily criticized for inflation, on July 15, Senior White House Correspondent Alexander Nazarian emphasized in an editorial that inflation has become “Biden’s political nightmare”.

Krugman says he's 'wrong about inflation', Summers talks about recession, Biden criticized for 'half-truths and fabrications'
On July 21, 2022, American economist Paul Krugman said he was wrong about inflation in an editorial published by the New York Times. “In any case, this whole experience was a lesson in humility,” Krugman said on Thursday.
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Inflation soared so high that American economist and Nobel laureate Paul Krugman wrote article for the New York Times, noting that he was “wrong about inflation.” Krugman specifically mentioned the American bailout plan and mentioned that some economists had warned that it would lead to higher inflation. Krugman said he, like many other Keynesian economists, was more “relaxed” about the stimulus package.

“As it turned out, of course, it was a very bad call,” Krugman wrote on July 21.

Krugman was also quick to mention Larry Summers, a former economic adviser to former President Barack Obama. Summers recently spoke about the recession at the Aspen Security Forum. Summers explained that “the chance of a recession starting next year is over half”. The economist also touched on crude oil and commodity prices, and also highlighted the problems with the “geopolitical situation”.

Krugman says he's 'wrong about inflation', Summers talks about recession, Biden criticized for 'half-truths and fabrications'
US economist Larry Summers is urging the Biden administration to do more to fight inflation. “I would like my friends in the administration to turn their attention to what they can do to bring down inflation rather than clinging to the idea that this is what fate has done to them,” Summers said.

“I think it will depend a lot on what happens outside of the economic realm,” Summers said. said at the Aspen Security Forum. “It will also depend on how lucky and, you know, how skillful [Federal Reserve] turns out… They have a very, very difficult balance problem in setting monetary policy given the situation we are in,” he added.

Biden exposes ‘half-truth and outright fiction’

Several recently released reports are beginning to debunk the Biden administration’s “doubtful peak inflation claims.” For example, Kevin A. Hassett, author at discussed Biden’s Excuses and “A New Historic Low in Economic Communication”.

“Biden even declaring that two negative quarters in a row is not a recession,” writes Hassett. Hassett, senior adviser at National Review Capital Matters, concludes that “economic history students know better. Indeed, there will be no controversy when this year’s history is written, and this history is worth remembering while the spinning machine is spinning.”

Krugman says he's 'wrong about inflation', Summers talks about recession, Biden criticized for 'half-truths and fabrications'
“What is a recession? While some argue that two consecutive quarters of falling real GDP constitute a recession, this is neither the official definition nor how economists view the state of the business cycle,” the Biden administration said in a statement. economic briefing published on Thursday. “Looking ahead, we know that the U.S., like the rest of the global economy, is facing significant headwinds, and relevant data for Q3 (Q3 2022) is still scarce.”

On July 20, 2022, two contributors to The Hill, E.J. Anthony and Stephen Moore, published a post titled “Biden’s 6 Favorite Lies About Inflation and the Economy.” The authors summarize “The Biden Administration’s Most Economically Significant Hoaxes”.

The hoax involves telling people, “No one earning less than $400,000 will get a tax increase,” which turned out to be false. The authors criticized the White House for speaking inflation is worse everywhere except the United States and when Biden said the economy was stalling when he took office 18 months ago. Moore and Anthony accuse Biden of exaggeration, such as when the US President told the press he was responsible for the strongest job creation economy in modern times.

“This is more of an exaggeration than a blatant lie,” the authors of The Hill wrote. Finally, the authors sharply criticize Biden for speaking American families are less in debt and savings have risen under his administration, and like Biden noted that he is doing everything he can to keep gas prices down.

“Perhaps none of these half-truths and outright fabrications should cause much surprise. What can we expect from an administration that first denied inflation, then said inflation was temporary, and then claimed it was only a high class problem? the authors conclude.

Meanwhile, Biden also accused telling people that if they get vaccinated they won’t get Covid-19 at least four times in the past. However, the President of the United States is currently in self-isolation for contracting a disease after taking all recommended vaccinations and boosters.

Furthermore, report published by the Wall Street Journal (WSJ), now claims that “there are indications that inflation may have peaked,” according to specific signals in the US economy. The WSJ quotes Evercore ISI Chairman Ed Hyman as “pointing out many indicators that 9.1% could have been the maximum.”

What do you think of Krugman’s latest article and Summer’s chances of a US recession? What do you think about the sharp criticism of US President Joe Biden for his statements about the economy? Let us know what you think about it in the comments section below.

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