Economists Say Biden’s Plan To Fight Inflation Will Likely Just Make It Worse

President Joe Biden emphasized in his State of the Union address on Tuesday that he would fight inflation by enacting a policy that economists generally agree would exacerbate inflation.

“I think I have a better idea fight to inflation,” said Biden. “Lower your costs, not your wages … That means make more cars and semiconductors in America … Instead of relying on foreign supply chains, let’s make it in America.” 

Biden was immediately rebutted by the Peterson Institute for International Economics on Twitter. “While a political winner, research finds that ‘Buy American’ requirements increased US domestic procurement costs across federal & state governments by 5.6% in 2017, costing US taxpayers an additional $94 billion.”

“I wish the President had placed less emphasis on anti-inflation policies that are at best peripheral and possibly counterproductive,” wrote economist Larry Summers. “Shifting demand to American producers with ‘Buy America’ polices that stop firms and consumers from buying at the lowest cost, no matter how politically attractive, are inflationary. This is something all economists should agree on.”