Economist Lawrence Summers tore into President Joe Biden for redirecting the blame for America’s inflation crisis.
Summers, Obama’s former National Economic Council director, said Biden was flat-out “wrong” to blame inflation on Russia’s invasion of Ukraine during a March 11 segment on Bloomberg TV’s Wall Street Week.
Inflation hit 7.9 percent in February on a year-to-year basis, its highest level in more than 40 years. Summers was blunt: “While inflation was 7.9 percent over the last year, if you annualize the monthly figure, it was close to ten percent. So we’re not seeing deceleration yet,” he said.
He slapped down Biden and his left-wing media cronies who have been telling Americans to blame Russian President Vladimir Putin for high prices. “Everybody had been expecting from the time before Putin launched the invasion that inflation was going to accelerate from January to February,” Summers said. The skyward direction of inflation is a “grave problem,” he noted.
He put the blame right where it should always have been placed: Washington, D.C.
“This is a consequence fundamentally of an overheated economy, and we’re not going to have a full solution until we do something about that overheated economy,” Summers said. “That’s just the fact of the situation.”
Summers wasn’t done. He criticized the Biden administration for blaming inflation on “corporate greed,” which was another shift of the burden of responsibility by Biden’s PR team and the media. “Blaming corporate greed … will chill business confidence, will reduce investment in expanding capacity and will likely make this worse,” Summers rebuked.
He sounded the alarm over a year ago that Biden’s gargantuan $1.9 trillion stimulus would wreak inflation havoc. Summers warned that the stimulus would “set off inflationary pressures of a kind we have not seen in a generation.” He appears to be right on target. But the liberal media, in typical fashion, have doubled down on Biden’s false “Putin’s Price Hike” talking point. Take a look at the montage of media talking heads twisting themselves trying to protect Biden from the political fallout from decades-high inflation: