The sad truth about inflation
You don't fix inflation by giving everyone more money to spend.
Biden did not cause inflation. Inflation is worldwide: 10.9% in Germany and the U.K, 12% in Belgium, 10.3% in Sweden. It is 8.2% in the U.S.
An international poll of voters in Western democracies asked what governments should do to reduce inflation. Here are the results:
Notice a pattern? The popular suggestions would make inflation worse.
Price caps ration goods. They temporarily remove a money price while they create a new, more expensive price in the form of wait times and cancellations. Net-net, they add costs. Cutting taxes on highway fuel simply backdates costs by deferring payment for the ongoing maintenance. Increasing the minimum wage and increasing welfare benefits for working people would address poverty among the working poor, but it is inflationary, not deflationary. Cutting taxes is inflationary. Reducing interest rates is twice as popular as increasing them, but it has the opposite of the desired effect. It is inflationary, not deflationary.
Politicians don't offer realistic suggestions. The problem is worldwide, so domestic solutions are inadequate, plus they are unpopular. It is politically smart just to complain.
The inflation we are seeing today is strongly affected by rising energy costs. OPEC, including Russia, just reduced oil production, which is pushing prices back up. The focus is back on American oil production.
Democrats are getting an unpleasant dose of political reality. Democratic policy discouraged domestic oil production. However, energy technology and infrastructure did not move as fast as Democratic message and policy. Electric vehicles are not yet cheaper. There are 280 million existing vehicles on the road in the U.S. that use gasoline and diesel. Those aren't worn out. Most Americans need a car to live.
The practical mechanism for conversion to green energy was price signals. Ideally, this would happen world-wide, with renewables having gotten cheap and available, with fossil fuels an expensive second choice. Ideally, too, the conversion would be fast enough that conversion would reduce carbon emissions worldwide, but slowly enough that the adjustments don't cause political or economic disaster. This is too much to ask. We see an international move toward populist nationalism and authoritarianism.
The renewed Republican message of "Drill, baby, drill," is potent political signaling. It implies that the Democrats and climate activists caused high gasoline prices and inflation. It declares that in a choice between lower gasoline prices and climate, the GOP is for lower prices. Drill, baby, drill implies that there is nothing America can do about climate that China won't cancel out, so any sacrifice is for naught. Besides, climate is long term, and high prices are now. That message has appeal to rural voters, stressed consumers, climate doubters, non-college people who resent snooty environmentalists, and Republicans. A big coalition.
Democrats are conflicted, so their message is muddled. Long term, Democrats like the market signals of high fossil fuel prices which hasten conversion to renewables. But not now. Now they want it cheap. Biden goes hat in hand to Saudi Arabia. The Democratic message lacks clarity and consistency. Democrats are ready for renewables, but renewables aren't ready for them.
The policy that works to stop inflation is raising interest rates enough to slow the economy and maybe push it into recession. It is happening and it is painful. No one like inflation. No one likes the cure. Both are bad for incumbents. Russia and Saudi Arabia are at war with Biden, and they are using the weapon they have. There is a price to pay for supporting Ukraine and Biden is paying it.