In Case You Missed It - 35% of Americans Blame Biden Most for High Inflation.

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ICYMI: 35% of Americans Blame Biden Most for High Inflation

Whose fault is inflation anyway? Well, more than one-third of U.S. adults blame President Biden most for surging inflation that has us paying more for things like groceries, gas, and rent, according to a survey by The Balance.

But the president wasn't the only one catching heat in the survey, which was conducted in late June and early July. About one in five respondents said the pandemic was the most to blame, followed by corporations (13%) and Congress (10%). When respondents were asked to name who was "responsible" (rather than who was "most responsible"), the pandemic crept to the top with 50% of responses.

The survey also showed that participants were politically divided on who to blame for surging prices. Three-quarters of Republicans and Republican-leaning participants said Biden is mainly responsible, while 62% of Democrat and Democrat-leaning participants said the pandemic is the leading cause of high inflation.

Experts are pretty divided on the answer, too. Economists at the Federal Reserve Bank of New York said supply chain constraints and labor shortages from the pandemic are to blame, along with stimulus checks and tax credits that increased demand from consumers by giving us more money to spend. Other economists blame corporations that have benefited disproportionately—earning excess profits—from inflation.

Meanwhile, the Federal Reserve has continued to press the fight against inflation with another 0.75 percentage point hike on Wednesday. So while inflation means everything costs a little bit more, the Fed's actions mean borrowing for things like houses and cars and stuff you put on your credit card will cost you more, too.

-Hira

Editors' Picks

38% of US Adults Delaying Major Milestones Due to Inflation (The Balance)

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When Can a Tenant Legally Break a Rental Lease? (The Balance)

15 Side Jobs To Make Some Extra Money (The Balance)

Inflation Is High. How Do I Fight It? (The Balance)

Term of the Day

Expansionary Fiscal Policy

Expansionary fiscal policy is when the government expands the money supply in the economy using budgetary tools to either increase spending or cut taxes—both of which provide consumers and businesses with more money to spend. In the United States, the president influences the process, but Congress must author and pass spending bills.

By using subsidies, transfer payments (including welfare programs), and income tax cuts, expansionary fiscal policy puts more money into consumers' hands to give them more purchasing power.

The purpose of expansionary fiscal policy is to boost growth to a healthy economic level, which is needed during the contractionary phase of the business cycle. The government wants to reduce unemployment, increase consumer demand, and avoid a recession. If a recession has already occurred, then it seeks to end the recession and prevent a depression.

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Off the Charts

Americans are pretty divided on the Federal Reserve's role in bringing down inflation, according to a recent survey by The Balance. Over a quarter of respondents don't think the Fed will lower inflation. However, 39% of respondents said they have faith that the central bank will act to lower inflation, with 35% saying they are not sure.

This week, the Fed announced another super-sized interest rate hike in an effort to tame inflation, which will mean higher borrowing costs.