Advertisement

Economist says presidents have ‘very limited ability’ to effect inflation

Consumers remain concerned about the current uptick in inflation rate.
President Biden addressed concerns of high inflation in his State of the Union address, while presidents have “very limited ability to effect price inflation.”
Published: Mar. 2, 2022 at 4:30 PM CST
Email This Link
Share on Pinterest
Share on LinkedIn

MADISON, Wis. (WMTV) - President Biden addressed concerns of high inflation in his State of the Union address, while presidents have “very limited ability to effect price inflation.”

That’s according to Andrew Reschovsky, a professor emeritus of applied economics and public affairs at UW-Madison.

In Tuesday night’s speech, Biden shared plans to tackle consumer concerns.

“Too many families are struggling to keep up with their bills,” he said. “Inflation is robbing them of gains they thought otherwise they would be able to feel.”

Rosemary Duncan from Madison said, “The way our country’s going, and all the prices, the gasoline, everything… it’s not good.”

“As a shopper sometimes I question, ‘Are the things I’m getting right now the things I really need?’ Nathaniel Sanders said.

After vowing to “protect American businesses and consumers,” while targeting Russia’s economy with sanctions, Biden announced during his speech that the U.S. will release 30 million barrels of oil from its strategic reserve.

“These steps will help blunt gas prices here at home. But I know news about what’s happening can seem alarming to all Americans. But I want you to know that we are going to be okay,” Biden said.

Reschovsky said releasing oil will help restrain gas price inflation “to some extent.”

He also pointed to Biden’s other policies mentioned Tuesday, like investing in infrastructure. He said they will help with supply, issues for which are partly responsible for the uptick in the inflation rate. But Reschovsky also said these policies take time, and therefore will not have any direct impact on inflation in the coming months.

“Right now, it’s not about what he [Biden] can do,” Sanders said. “Right now, it’s all about time. It takes time to change a lot, so hopefully we will see the manifestation of everything he got planned.”

Copyright 2022 WMTV. All rights reserved.