Just moments ago, the Federal Reserve lowered interest rates by 50 basis points, signaling a significant victory for Democrats in the battle against inflation. This development highlights the success of policies like the Inflation Reduction Act in stabilizing the economy and ensuring that the lowest earners have managed to keep pace with rising prices. However, it’s essential to acknowledge a fact that right-wing propaganda conveniently ignores: inflation didn’t suddenly appear under Joe Biden’s administration. In fact, a substantial portion of the inflationary pressures that Americans have experienced since 2021 can be traced back to Donald Trump’s economic policies, particularly his trade wars, tax cuts for the rich, and incompetent response to the COVID-19 pandemic.
The Long and Variable Lag
In December 2020, Jerome Powell, the Chair of the Federal Reserve, made a crucial statement about the long-term impacts of monetary policy. “Monetary policy works with LONG AND VARIABLE LAGS,” Powell said. “So we think that the big effects from monetary policy are months and months into the future.” At the time, Trump was still in office, and the Fed was grappling with the consequences of his chaotic economic policies.
Let’s break this down. Trump’s approach to the economy included reckless fiscal policies that prioritized the wealthy, massive federal spending that was necessary to mitigate the effects of his mismanagement of the COVID-19 crisis, and a series of trade wars that strained supply chains. The impacts of these policies were not immediately felt, but as Powell pointed out, economic policies have long-term effects. By the time Joe Biden took office, these “long and variable lags” were setting in, laying the groundwork for the inflation that would become a defining issue of Biden’s early presidency.
Trump’s Trade Wars and Economic Favoritism
Donald Trump’s trade wars, particularly with China, were another significant driver of inflation. By imposing tariffs on imported goods, Trump disrupted supply chains and increased the cost of many essential items for American consumers. Despite claims that these tariffs would protect American workers, the reality was far different: prices for goods rose, and companies passed these costs onto the public. Inflation was already brewing in the background because of these economic disruptions, and their effects started to manifest during Biden’s term, precisely as Powell’s warning about long lags indicated.
Moreover, Trump’s tax cuts for the wealthy—passed in 2017—did little to boost economic growth for the average American. Instead, they ballooned the national deficit while disproportionately benefiting the richest individuals and corporations. These tax cuts, combined with unbalanced economic policies, fueled inequality and created the conditions for economic instability. The ultra-wealthy profited from stock buybacks and corporate gains, while ordinary Americans bore the brunt of rising costs.
COVID-19 Mismanagement: A Crisis Magnified by Trump
Perhaps the most glaring aspect of Trump’s contribution to inflation was his catastrophic handling of the COVID-19 pandemic. From downplaying the severity of the virus to undermining public health measures like mask-wearing and lockdowns, Trump’s approach cost countless lives and resulted in a deeply fractured economy. His administration’s failure to implement a coordinated national response forced the Federal Reserve into aggressive monetary policies—slashing interest rates to near-zero and pumping trillions into the economy to stave off a full-blown collapse.
These drastic measures, though necessary to avert disaster, contributed to inflationary pressures down the line. As Jerome Powell noted, the effects of monetary policy take time to materialize. The seeds of inflation were sown during Trump’s mismanagement, but Republicans and right-wing media have been quick to blame Biden as these policies began to play out under his watch.
The Role of Republican Propaganda
Republican propaganda has successfully manipulated the narrative around inflation, convincing a large portion of the public that Joe Biden is solely to blame for rising prices. Right-wing media conveniently ignores the fact that Trump’s policies—trade wars, tax cuts for the rich, and COVID-19 mismanagement—are just as much to blame, if not more so. Instead of engaging with the complexities of the issue, conservative outlets have latched onto a simplistic narrative that blames Biden for inflation without any regard for the long and variable lags in economic policy that Jerome Powell so clearly warned about.
The Inflation Reduction Act: A Democratic Victory
Now, with the Federal Reserve lowering interest rates, it’s evident that the Inflation Reduction Act has played a pivotal role in addressing inflation and stabilizing the economy. By targeting corporate tax loopholes, investing in renewable energy, and providing relief to working-class Americans, the Biden-Harris administration has successfully kept wage growth in line with inflation, particularly for the lowest earners.
The success of these policies demonstrates that Democrats have not only managed inflation but have done so while uplifting those most in need. The narrative that inflation is solely Biden’s fault collapses when viewed through the lens of the long-term effects of Trump’s economic mismanagement. In reality, it was Trump’s actions that set the stage for inflation, while Biden’s policies—especially the Inflation Reduction Act—have delivered relief and stability.
Why Would Anyone Want to Go Back?
Now that inflation has finally been solved and interest rates are being lowered, why would anyone want to go back to the man who caused the problem in the first place? Trump’s policies favored the rich, disrupted supply chains, and left us vulnerable to economic shocks. His trade wars, tax cuts for the wealthy, and incompetent COVID response laid the foundation for the inflationary pressures we experienced. Yet, through skillful governance and policies aimed at equity and recovery, the Biden-Harris administration has brought the nation through this challenging period.
As the dust settles on this inflation battle, the choice for voters is clearer than ever: stick with the leadership that solved the problem or return to the person who created it.
