Are Deficits Causing Inflation?

Economists are debating the causes of the current inflation in America, including the possibility that deficits are contributing to it.

It’s an important debate on which there’s no consensus. But that hasn’t stopped the right from blaming Biden for it and returning to its traditional stance against government spending.

Biden doesn’t disagree with the need to reduce deficits.  His wants to reduce the deficit by reversing Trump’s tax cuts for corporations and the wealthy.

That might be good policy but it’s not politically satisfying.  He would be well-served by loudly promising to cut spending.  He could embrace the Clinton administration’s fiscal responsibility and blast the massive deficits amassed by Trump.

Is cutting possible?  Maybe.  But no politician has ever lost votes by vowing to cut waste and make government more efficient. Maybe he could focus on spending in Republican districts - especially where they’ve taken credit for the Biden administration policies they opposed.

The acknowledgment of the problem and the concerns of ordinary Americans would be a good way to defuse spurious Republican attacks and might also be good policy.