Why is hyperinflation a political catastrophe for Biden?

Joe Biden has been in the White House for almost a year and has been unable to deliver on his campaign promises on the economy. Furthermore, the Biden administration failed to address the ongoing economic turmoil in the United States, which had not been seen in four decades. The first indications of the Biden administration’s economic policy emerged in 2021. Inflation reached 5.4 per cent in June, July, and September of this year, the highest level since the 2008 financial crisis. During that year, inflation averaged 3.8 per cent, compared to 3.8 per cent this year. Rising inflation rates concerned the US Federal Reserve, market activists, and American society as a whole. According to the US Department of Labor, prices for apparel, footwear, truck transportation, food and alcohol retail, health care, and machinery all climbed last month. Moreover, the Producer Price Index (PPI), which gauges changes in the prices of goods and services sold, has risen sharply in the last month, with food and energy prices leading the way. One-third of the increase is due to a 6.7 per cent increase in fuel prices, according to the US Department of Labor, while households using natural gas for heating will have to pay 30% more this winter than last year, according to the US Energy Information Administration. When US economists report high inflation rates, they mislead the public by saying that rising prices in the United States are part of a worldwide trend. The truth is that global inflation cannot be employed to explain inflation in the United States. Independent economists say inflation in the United States is caused by domestic factors rather than external forces, according to independent economists. According to some analysts, Biden’s policies are a continuation of Trump’s neoliberal policies. On the other side of the coin, the Federal Reserve has maintained interest rates low, encouraging company owners to seek additional loans. As a result, growing inflation is mostly caused by the market’s money influx. Until recently, Federal Reserve officials attempted to assuage the anxieties of economic activists by arguing that recent inflation was only a blip on the radar. On the other hand, the US GDP increased by 2%, falling short of experts’ projections of 3% growth. Meanwhile, according to the most recent CNBC survey, Biden’s overall popularity as president has plummeted to 41%. The poll shows clearly the Biden administration’s failure to keep the economy and pandemic under control. Only 37 per cent of Americans approve of Biden’s management of the economy, and 56 per cent believe the Democratic administration has failed to prevent inflation.