Who Deserves Credit For Positive Economic Reports?
Summary from the AllSides News Team
Recent reports have sparked optimism regarding the state of the United States economy, with inflation slowing without rising unemployment. Has the economy avoided a sizable recession, and if so, who deserves credit for the good news?
“Soft Landing”: In a piece for the New York Times Opinion (Left bias), Paul Krugman (Left bias) determined that economic reports indicate the U.S. is “heading for a soft landing — a return to acceptable inflation without a large rise in unemployment.” Krugman determines remaining economic uncertainty to partially be because “Republicans are more or less in denial, no doubt worried that they may be losing pretty much their only substantive campaign issue.” Despite this, he argues that if the current course of the economy continues, it will “be hard to avoid the conclusion that recent economic policy has, all things considered, been pretty darn good.”
“Against Biden’s Wishes”: In an opinion piece for the Washington Examiner (Lean Right bias), Brad Polumbo (Lean Right bias) pushed back on praise for President Biden’s economic policy. He argues that “inflation is falling in part due to factors outside Biden’s control,” citing actions such as the Federal Reserves’ decisions to raise interest rates. Additionally, Polumbo pointed to a decrease in federal spending as contributing to positive economic news, stating, “this decline in spending happened against Biden’s wishes; it has occurred in part because the Republican-controlled House wouldn’t pass the additional spending Biden wanted.”
Featured Coverage of this Story
From the RightDoes Biden deserve credit for falling inflation?
The economy is finally starting to wake from its inflation nightmare. The latest inflation data for June show 3% year-over-year inflation, still a significant rate of price increases, but way down from 9.1% in June 2022.
President Joe Biden and his media allies are touting this as a massive success. But is this victory lap really deserved?
It’s complicated, but the short answer is no.
For one, inflation is falling, yet it’s not at zero or the normal 1-2%, meaning prices are still going up at unusual rates and Americans...
From the CenterUS economy shifts into disinflation mode; consumer prices rise modestly
U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation subsided further, but probably not fast enough to dissuade the Federal Reserve from resuming raising interest rates this month.
The report from the Labor Department on Wednesday also showed underlying consumer prices posting their smallest monthly gain since August 2021. The considerable slowdown in underlying inflation sparked a rally on the stock and bond markets, with investors convinced the U.S. central bank's fastest monetary policy tightening cycle since the 1980s...
From the LeftEverything’s Coming Up Soft Landing
The latest numbers on consumer prices arrived on Wednesday, and they were better than even optimists had expected. Even media reports, as far I can tell, generally omitted the “but concerns remain” qualifiers that have seemed mandatory when covering good news about the Biden economy.
Which is not to say that everyone was happy. Republicans are more or less in denial, no doubt worried that they may be losing pretty much their only substantive campaign issue — leaving them with nothing to run on besides wokeness and Hunter Biden. And...