The Biden administration’s official statement is that the increase in prices is a positive thing because it’s an indication that more things are being purchased, according to Breitbart News.
White House press secretary Jen Psaki made the comments on Friday during an appearance on CNN’s “The Lead” where she told host Jake Tapper that Americans should see the uptick in costs as a “good thing.”
“Inflation is skyrocketing as I don’t need to tell you. The prices for home heating costs, cars, groceries, furniture, rent, gasoline are hitting Americans right in the wallet,” Tapper said. “The White House response has been generally to say, ‘Hey, inflation shows we’re coming out of the recession. It’s a good sign.’”
The CNN host went on to question the White House press office saying that, “Biden’s chief of staff Ron Klain enthusiastically retreated an economist who said in part ‘Most of the economic problems, inflation, supply chains, et cetera, are high-class problems.’ Now I get the larger point that when we’re talking about economics, we’re coming out of recession. But doesn’t it seem tone-deaf to say that rising prices and empty grocery store shelves are high-class problems? Isn’t that a bit dismissive?”
Psaki took some exception to Tapper’s characterization saying, “Well, that’s not exactly what the tweet said, nor the retweet of the original tweet, which is what we’re talking about here.”
According to Psaki, the fact that unemployment is half of what it was this time last. year at the height of the pandemic is the reason that the prices have gone up:
“So a year ago, people were in their homes. Ten percent of people were unemployed. Gas prices were low because nobody was driving. People weren’t buying goods because they didn’t have jobs. Now more people have jobs. More people are buying goods. That’s increasing the demand. That’s a good thing.”
She addressed the lack of supply saying that the White House is aware that supply is low “because we’re coming out of the pandemic and because a bunch of manufacturing sectors across the world have shut down because ports haven’t been functioning as they should be.
“These are all things we’re working through. People should know that inflation is going to come down next year. Economists have said that. They are all projecting that. But we’re working to attack these cost issues that are impacting the American people every single day.”