Which is why Biden’s approval rating on the economy is deeply underwater while perceptions of Trump’s handling of the economy when he was president (marked by low inflation but huge job losses from the pandemic) are positive.
What should Biden do?
Put blame for high prices squarely where it belongs: on big corporations with monopoly power to keep prices high.
And take those corporations on: Condemn them for price gouging. Threaten them with antitrust lawsuits, price-gouging lawsuits, even price controls. Criticize them for making huge profits and giving their top executives record pay while shafting consumers.
And name names: PepsiCo, Tyson’s, Kroger and Albertsons, Exxon-Mobil, and others.
To be sure, the Biden administration has brought down the prices of prescription drugs like insulin and inhalers, reduced bank overdraft and credit card fees, and cracked down on “junk fees” levied by airlines, concert promoters, and more.
Its Department of Justice has launched a lawsuit to combat price-fixing in the meat industry. And the FTC is suing to block the Kroger/Albertsons grocery mega-merger that would send grocery bills even higher.
“We’re taking on corporate greed to bring down the price of gas, food and rent, eliminating junk fees,” Biden told a crowd of 1,000 supporters in Philadelphia recently.
But Biden has not berated hugely profitable corporations for keeping their prices and profit margins sky high — unlike Senators Bob Casey of Pennsylvania and Sherrod Brown of Ohio, who have made corporate price hikes central to their campaigns and are outrunning Biden in polls. Biden has not condemned specific corporations publicly, or threatened them with specific actions unless they lower their prices.
Brown, who represents a state that Trump won handily in 2020, has cut several web ads proclaiming he is “cracking down on the companies that rip off Ohio.”
Casey released a campaign ad showing corporate executives in suits sneaking into a grocery store under cover of night and switching out cereal boxes for smaller replacements. He has introduced a bill that would crack down on “shrinkflation” — a term for companies’ reducing the size of their goods but not cutting prices (Biden praised that legislation during his State of the Union address).
Senate Democrats in tight races, like Tammy Baldwin of Wisconsin and Jacky Rosen of Nevada, are making similar pitches.
Why isn’t Biden?
Partly, I think, because he’s uncomfortable attacking corporations directly.
It’s also because some economists close to his White House (such as Larry Summers) disagree that a major driver of inflation is corporations’ raising prices to juice profits. (Three years ago, Larry and I publicly debated a wealth tax on hugely profitable corporations. I was in favor; he against.)
But the fact is, corporate profits have surged to record levels. Shares are trading at record levels. Corporations are buying back their stock at record levels. CEO pay is at record levels. Corporate concentration — monopoly power — is higher than ever.
Concentration has increased in over 75 percent of U.S. industries since the late 1990s.
Consumers are getting shafted, as corporations tell Wall Street they expect to be able to keep their prices and profits in the stratosphere.
Most voters agree that big corporations are largely responsible for inflation. Nearly 6 in 10 say corporations’ being “greedy” is a major cause of inflation, including a majority of independent voters, according to a poll by Navigator Research.
The Biden campaign’s internal polling has found similar results.
With less than five months to go — and the cost of living being the #1 issue on voters’ minds — Biden should let ‘er rip.
As much as I love Prof. Reich, I have to disagree with him on this one. Setting aside the problems with polls, inflation is a red herring issue. It’s a manufactured issue by the GOP, since it’s the only economic variable that has been less than stellar since Biden took office. If Biden goes even harder after big corporations publicly, it will backfire. The real underlying issue that people have with Biden is that too many “others” are doing well. He can point out the profiteering of Big Oil and the grocery cartel all day, and it will only garner them sympathy from the people for whom “inflation” is an overriding issue. When people complain about “inflation” what they are really complaining about is full employment with higher wages. You can show them real numbers to prove corporate greed is driving higher prices and it won’t matter. They just want a dogwhistle to substitute in for not liking that “those people” are doing better.
Manufactured? How so? Prices generally have gone up, markedly. Very noticeably. And many people do blame Biden for it, and they do think it would go down if Tromp became prez again.
If Biden goes even harder after big corporations publicly, it will backfire.
Why? How so?
I’d think if he blamed corporations for price gouging in more full-throated ways, and if his admin had gone after monopolies and so on it for it legally and otherwise more publicly for the past few years, more people would blame corporations more for it, and blame less Biden for it.
The real underlying issue that people have with Biden is that too many “others” are doing well.
What others? Black and brown people? How are they doing well economically? Surely they’re suffering even more than white people from inflation.
And while some people do have issues with “others,” I think those people are MAGAts who would nevwr vote for Biden anyway.
When people complain about “inflation” what they are really complaining about is full employment with higher wages.
I don’t think those complaining about higher prices are only at best dimly aware that employment and wages have gone up. And as for the latter, many people’s own wages have not gone up, never mind gone up at rates that keep up with inflation.
I agree that many people pay attention politically to little more than dog whistled canards, but they also react realistically to most prices being a lot higher than they used to be (even if thinking it’s all Biden’s fault is unrealistic).
Because no one cared when prices went up under T**** or Shrub or Bush or Regan. Inflation is only an issue when Dems are in office and it’s only become a panic under Biden because it’s the one thing they have. BTW, we’ve now gone a solid year with wage growth outpacing inflation. Where’s the parade? Where’s the fucking marching band!?!
Except objectively, they aren’t, at least comparatively under Biden. Minority wage growth has outpaced white wage growth over that last year period. Still a long way to go, but progress should be recognized.
True, but what I’m saying is that people for whom “inflation” is a driving issue are those same people. It’s a dogwhistle.
The one thing I think he could reasonable do more of that he hasn’t already done is housing equality and regulate rents and housing price increases dramatically. He’s already forgiven hundreds of billions of dollars in student loan debt.
If it were up to me, I’d deal with the problem of private equity taking over the housing market by just seizing all real estate held by private equity through eminent domain, reimbursing them for what they paid for it, and redistributing it to people who need housing. I don’t think that’s a workable solution for Biden, but it would send a helluva message.
Would never happen, but could you imagine the screams! Lawyers would love, it would be a huge payday, and the USSC would fall all over themselves overturning it. But it would be fun whole it lasted.
Huh?
Inflation is more under control now, but whoever’s fault it is, prices have jumped noticeably and dramatically during Biden’s term. It’s become an issue (if not a “panic”) because people notice nearly every time they buy something. 
I hope you’re right!
Citation needed. Everyone I know, MAGAt or not, complains about inflation (unless they’revery well off), and many who aren’t MAGAts blame Biden for it.
I do love your other ideas for helping people in tangible ways. 
That graph is what I’m talking about. High inflation has occurred during both Democratic and Republican administrations, and often hits regular people harder during Republican recessions (which strike like clockwork). But as a political issue, it only every comes up during Democratic administrations. That’s because Republicans have to scramble when every other economic indicator is skyrocketing as Dem administration recover from the Republican recessions.
I’m not right or wrong. It’s just data.
To clarify, I’m not saying inflation doesn’t exist or that it didn’t spike during 2023. It does and it did. What I’m saying, and this is not fact but my opinion, is that the people for whom inflation is more important that issues like abortion, racism, climate change, inequality, housing, healthcare, rising fascism (and many others I haven’t listed) in an election year are fucking assholes who care less for their fellow humans than for their own wallets.
With all due respect, I consider that bullshit. Half-assed as they were, the Covid lockdowns had an effect on many businesses, leaving some workers underemployed or unemployed after businesses cut hours or closed altogether. There’s also a growing number of people who can no longer work the hours they used to-- or at all- thanks to Long Covid. Biden may not be completely to blame for that (though his declaring the pandemic over prematurely definitely didn’t help), but it did happen during his term in office and the rampant corporate profiteering under his watch is a definite problem. In a more just world, the various states’ Attorneys General could’ve taken legal action against the price gouging under existing laws. Where’s that parade?
Is that evenly distributed across the country? Is that across the board, or is it limited to specific industries, with other jobs lagging behind?
None of that explains why I see so many people crowdfunding online across my various social media accounts. Folks are looking for food and rent money, health care funds, and they’re desperate. Anecdotes aren’t data, I know, but I’m not willing to dismiss very real cries for help from real people in favor of some ephemeral statistics (which are typically compiled by people who aren’t affected by economic fluctuations.)
As far as your private equity solution goes, I agree with it and wish it could be implemented. It would be a very worthwhile use of political capital to even attempt it, and that could gain Biden and the Democrats enough votes to sweep the elections, IMHO.
I respect that. The COVID effect however wasn’t inflation, it was the recession. Inflation happened when companies price-gouged “post” COVID (whatever that means as people are still dying from it 
).
He’s not at all to blame for the recession - he deserves credit for implementing Keynesian economics to recover from the recession. Agreed 100% on whatever harebrained idea it was to call the pandemic “over.”
I also agree with this completely. Not just state AGs but the US DOJ should have gone after them, and Biden missed an opportunity to use the Defense Production Act to stop profiteering cold.
That said, the current situation is cooling inflation and continuing gains in wage growth. So the current snapshot should absolutely be to his credit, not to his detriment, at least politically.
That is all very real and valid. Housing is too damn expensive. Groceries are too damn expensive especially for healthy food options. We all know healthcare in the US is insane. Biden is attacking those systemically through DOJ actions against landlord price-fixing and going after grocery cartels with anti-trust actions. But that doesn’t change what people are really experiencing on a day-to-day basis. I’m not counting against any of that. What I am saying is that, looking at the plethora of problems regular Americans are dealing with, people who pick from the menu and say “inflation” is their #1 voting issue either are jerks or have been 100% played by the GOP.
I respect you, and I respect your data. I’m glad it gives you hope.
I’m still not sure I can agree with your assessment that people concerned about the economy are either jerks or gullible fools. Yes, the Republicans are playing it for all they can, but that in itself does not invalidate the worries of the many, many people who are struggling. After a certain point, the constant claims that “no, really, everything’s fine, you just aren’t looking at it properly” start sounding disingenuous when compared to rising grocery store prices and hefty utility bills.
Inflation isn’t my number one issue in the upcoming election, but I’d be lying if I said I wasn’t worried about it. I don’t think that makes me a jerk or a fool.
I’m not expressing myself clearly, so I will stop after this.
No, I don’t think people who are struggling right now are fools or jerks. No, everything is definitely NOT FINE. And I’m very lucky to be in a position where I can take a step back and look forward and think strategically, even though I’m financially not in as good of shape as I was even in 2019. It’s just that I have the luxury of room to breathe. I know many, many people do not have that luxury.
I’m not at all saying people who are worried about inflation are anything close to a jerk or a fool. What I’m saying is that people who look at the current political climate and see what Biden’s accomplished versus what T**** and Republican control would yield and say “well, yes there are all these differences in policy (or lack thereof), but INFLATION! So I won’t support Biden.” Those people aren’t really making that call because of inflation. They are making it because Biden isn’t punishing the people who they want to punish, and they think T**** will.
I’ll admit, I don’t understand how people can honestly believe that Trump would be any better than Biden economically. The only money issues Trump gives a damn for are his own.
So in that, we definitely agree. 
FPTP, two party system sucks in many, many ways, but this election, it does make the choice stark and very much binary. Biden has been more progressive and done better than I thought he would, or could. The right is in a panic because of this. And doing all they can to paint him as a loser and a threat. And for some it is working. Facts matter, though.
What pisses me off is the reason why this is working. The press buries any reports about what Biden has accomplished as well as details about who blocks administration efforts to fix economic problems. The GOP’s efforts to flood every communication zone with shit has been successful. They must be celebrating to see their talking points promoted - like this view of Biden involvement in 45’s prosecution.
Even in media outlets that are described as “left-leaning,” TFG tends to be the number one thing in the headlines every day. 
Yesterday, I searched The Guardian for the term Biden, found this section, and an article about 45 (with a big picture of him 
) was the first thing that appeared. I sent them their own link in a strongly-worded email about bias, and was glad to see it looks better today. Still, we have to dig to find details about what Biden is doing to help people who are struggling:
IMO, the administration’s attempts to go after profiteering and tax excessive profits (raised in 2022 and 2023) got little press or traction in Congress, and this is the result:
We know GOP plans for deregulation involve going after every three letter agency by eliminating them completely, or making it illegal for them to set standards, impose restrictions, or levy fines. We’ll see if the press makes it clear what voting for Republicans means for people who are already struggling financially because of corporate greed, actions against workers, and excessive influence over the public sector.
FWIW when you said “manufactured” I thought you meant in a conspiratorial sense.
Eg. imagine key industries agree to price gouge so that the GOP can platform off of it in agreement to complete deregulation and access to dependent serfs in the New America.
I don’t believe in vast conspiracies but ime just assholes helping assholes because it makes them cash/assets/sex will get you 90% of the way there.
Yeah, I couldn’t think of a better word for the fact that the GOP is pushing that narrative hard, even as inflation has recovered to normal levels.
