Joe Biden has been an absolute catastrophe as President.
Even Democrats are starting to panic after how much damage he’s caused.
And a former Obama official left Joe Biden fuming after he pointed out this massive failure.
Joe Biden inherited an economy from President Trump that was on its way to recovery from the pandemic.
In less than a year, Biden managed to nearly burn everything down.
Inflation is soaring, the stock market is tanking, and gas prices are setting record highs.
Biden essentially brought the country Jimmy Carter’s second term with 1970’s stagflation, which is a stagnant or slumping economy gripped with high inflation.
Now Democrats are starting to make this connection to the economic malaise of the Carter era.
Larry Summers is one of the leading economic thinkers on the Left.
He served as Bill Clinton’s Treasury Secretary and was a top economic advisor to Barack Obama.
Appearing on Wall Street Week, Summers offered his dire assessment of the Biden economy.
“We’re now facing real risks of a 1970s-type scenario . . .the same kind of broad phenomenon of stagflation,” Summers said.
This is being caused in part by “a response to the excessive stimulation of the economy during 2021.”
Of course, Summers is referring to the $2 trillion pork-filled COVID relief bill that kicked off Biden’s regime.
Summers explained that even though the Federal Reserve can use monetary policy to tame inflation, that it comes with major risks.
The Fed is preparing to raise interest rates in hopes of lowering inflation.
But Summers warned that “it may not be an effective tool without engineering a slowdown in the economy. And so, the Fed’s going to have to make some very difficult choices.”
If the Fed raises interest rates too quickly, it risks sending the economy into a recession.
Too much caution on raising interest rates could keep inflation running rampant.
But given the current state of the economy, it could already be headed into a recession.
Summers concluded by making a reference to the disastrous Jimmy Carter economy.
“I think we’re now facing real risks of a 1970s-type scenario, not quite as high levels of inflation as we saw in the 1970s, but the same kind of broad phenomenon of stagflation. And that is, in part, a response to the very bad break we’ve gotten from geopolitics and what’s happening with oil and commodities. But it’s also a response to the excessive stimulation of the economy during 2021,” Summers remarked.
This is the latest broadside by Summers against Biden over the economy.
He’s consistently criticized Biden for causing inflation by spending trillions of dollars on COVID relief.
This is a major political problem for Biden.
When a former Obama economic advisor is making comparisons to the Carter economy, that spells doom for the current administration.
With Biden’s incompetence, it’s not likely he can pull himself out of this tail spin.
As the economy continues to struggle, this could be just the beginning of the Jimmy Carter comparisons.
Renewed Right will keep you up-to-date on any new developments in this ongoing story.