(Another) Top Obama Economist Offers Harsh Assessment of Elizabeth Warren’s Inflation Theory | Jon Miltimore – Foundation for Economic Education
Over the weekend, Jason Furman, a former top economist for President Barack Obama, threw cold water on Sen. Elizabeth Warrens claim that corporate greed is driving inflation.
"Corporate greed is a bad theory of inflation," Furman bluntly told Business Insider in an article published Sunday.
Furman, currently a professor at Harvard University's John F. Kennedy School of Government and a Senior Fellow at the Peterson Institute for International Economics, said the surging inflation in the US economy has a simple explanation.
"I think almost everything other than the Federal Reserve is a sideshow when it comes to the dynamics of inflation," Furman said.
Warren, a populist progressive from Massachusetts, has hit the cable shows in recent weeks to argue that inflationwhich in December saw a year-over-year increase of 7 percent, its biggest leap clip since 1982is the fault of greedy corporations.
Prices at the pump have gone up. Why? Because giant oil companies like @Chevron and @ExxonMobil enjoy doubling their profits, Warren tweeted. This isn't about inflation. This is about price gouging for these guys & we need to call them out.
Warren has used the corporate greed talking point to argue for antitrust legislation, saying businesses like Kroger should be broken up, which would lead to lower prices.
Furman isnt the only Obama economist to point out that Warrens arguments are not grounded in sound economics.
In December, Lawrence Summers, who served as the director of Obamas National Economic Council from January 2009 until November 2010, had harsh words for those claiming antitrust legislation could be used to curb inflation.
The emerging claim that antitrust can combat inflation reflects science denial, Summers tweeted. There are many areas like transitory inflation where serious economists differ. Antitrust as an anti-inflation strategy is not one of them.
Could corporate greed really be behind inflation? Put aside for a moment the economic modeling. Theres an even more obvious reason Warrens suggestion is silly, my colleague Brad Polumbo pointed out.
Senator Warrens attempt to pin the blame for rising gas prices on corporate greed makes little sense. Are companies greedy in the sense that theyre focused on increasing profits? Yes, absolutely, he writes.
He continues:
But it does not in any way explain the current increase in gas prices that is hurting Americans. Chevron and Exxon are no more or less greedy or profit-focused than they were last year. Or the year before that. Or 20 years ago. Theres simply no reason to believe that they suddenly became extra greedy this year, or something.
The true causes of high gas prices are complicated, and ultimately, prices are set by supply and demandnot by the whims of individual companies. (Otherwise, theyd always set them as high as they could. But other suppliers and customer demand keep companies prices in check).
Okay, so if corporate greed is not driving inflation, then what is? Well, Furman is mostly correct when he said almost everything other than the Federal Reserve is a sideshow when it comes to inflation.
After all, an authority no less than Nobel Prize-winning economist Milton Friedman noted that inflation is primarily a phenomenon stemming from monetary policy.
Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output, Friedman famously noted.
The reality is, the Federal Reserve has been printing money at an alarming rate. Fed Chairman Jerome Powell, by his own admission, said the central bank flooded the system with money. As a result, 35-40 percent of dollars in total circulation have been printed in the last 22 months.
Still, theres another quote often attributed to Friedman that deserves attention.
Inflation is caused by too much money chasing after too few goods, the quote goes.
Money here is part of the equation; the other part is too few goods. While monetary policy is the elephant in the room when it comes to inflation, its also true that policies that discourage or frustrate the production of new goods or the ability to get them to market can also influence prices.
So while the Feds money printer is the primary culprit, lockdownswhich disrupt supply chainsand policies that discourage workers from working (such as ultra-generous unemployment benefits) also presumably played an inflationary role, though to what degree is unclear.
Whatever the case, many Americans unfortunately are experiencing significant inflation for the first time, a phenomenon that tragically falls hardest on the poor. If inflation continues to grow worse, claims that corporate greed are causing it will undoubtedly grow louderwhich could spur calls for even more government action.
But if we want a solution that actually works, its imperative that the true culprit is identified. And in this case, the culprit is the usual one.
I do not think it is an exaggeration to say history is largely a history of inflation, the Nobel Prize-winning economist F.A. Hayek observed in The Denationalization of Money, and usually inflations engineered by governments for the gain of governments.
Its just as they say: the more things change, the more they stay the same.
Read more from the original source:
(Another) Top Obama Economist Offers Harsh Assessment of Elizabeth Warren's Inflation Theory | Jon Miltimore - Foundation for Economic Education
- Barack and Michelle Obama Say They're 'So Proud' of Daughter Malia on 27th Birthday: 'Keep Shining Bright, My Love' - People.com - July 6th, 2025 [July 6th, 2025]
- Steph Curry revealed what Barack Obama's golf game is like after playing with him and Jordan Spieth - The Golfing Gazette - July 6th, 2025 [July 6th, 2025]
- Barack and Michelle Obama Share Why They're "So Proud" of Malia on Her 27th Birthday - instyle.com - July 6th, 2025 [July 6th, 2025]
- Michelle Obama's new photo of Malia on her birthday leaves fans saying the same thing - hellomagazine.com - July 6th, 2025 [July 6th, 2025]
- Malia Obama celebrates her birthday on Fourth of July: Our favorite looks over the years - hola.com - July 6th, 2025 [July 6th, 2025]
- Your campaign is a mess: What incredulous Obama thought of Biden running again - Washington Examiner - July 6th, 2025 [July 6th, 2025]
- Malia Obama, Suri Cruise, Jennifer Garner, and more celebs wearing overalls - hola.com - July 6th, 2025 [July 6th, 2025]
- Bush, Obama and singer Bono fault Trumps gutting of USAID on agencys last day - Politico - July 4th, 2025 [July 4th, 2025]
- USAID officially closes, attracting condemnation from Obama and Bush - BBC - July 4th, 2025 [July 4th, 2025]
- Mamdani campaign hires former Obama, Clinton spokesperson who wished death on Trump - New York Post - July 4th, 2025 [July 4th, 2025]
- Bush, Obama and singer Bono fault Trumps gutting of USAID on agencys last day - AP News - July 4th, 2025 [July 4th, 2025]
- News - Mrs. Obama: Nation Must Step up Forever for Military Families - DVIDS - July 4th, 2025 [July 4th, 2025]
- News - Obama: Wont Accept Budget That Shortchanges Readiness - DVIDS - July 4th, 2025 [July 4th, 2025]
- Malia Obama shows off her summer abs on the way to the gym in Los Angeles - HOLA - July 4th, 2025 [July 4th, 2025]
- Readers respond: Obama deal would have avoided Trump bombing - OregonLive.com - July 4th, 2025 [July 4th, 2025]
- Rubio hails end of USAID as Bush, Obama deplore cost in lives - France 24 - July 4th, 2025 [July 4th, 2025]
- Obama, Bush and Bono bid a fond farewell to USAID - Daily Kos - July 4th, 2025 [July 4th, 2025]
- Fmr. Obama Treasury Sec. concerned Zohran Mamdani will ruin NYC if elected mayor - Fox News - July 4th, 2025 [July 4th, 2025]
- Comments - Obama and Bush Team Up To Shred Trump Over USAID - The Bulwark - July 4th, 2025 [July 4th, 2025]
- How Trump plays with new media says a lot about him as it did with FDR, Kennedy and Obama - The Conversation - July 4th, 2025 [July 4th, 2025]
- Obama Urges Americans to Pressure Reps to Reject Trump Megabill - The Rickey Smiley Morning Show - July 4th, 2025 [July 4th, 2025]
- Obama and Bush Unite in Rare Move Against Trump - The Daily Beast - July 2nd, 2025 [July 2nd, 2025]
- Bush, Obama and Bono Commend USAID Staff Members on Their Last Day - The New York Times - July 2nd, 2025 [July 2nd, 2025]
- Lucas: Obama and the Democrats paved the way for Irans nuclear program - Boston Herald - July 2nd, 2025 [July 2nd, 2025]
- Obama, Bush decry travesty of Trumps gutting of USAID on its last day - Al Jazeera - July 2nd, 2025 [July 2nd, 2025]
- Obama, Bush criticize Trump administration for gutting USAID - Washington Examiner - July 2nd, 2025 [July 2nd, 2025]
- 10 Years Later: Looking Back On a Week That Shaped Our Country - Barack Obama Medium - July 2nd, 2025 [July 2nd, 2025]
- Bush, Obama and Bono bid farewell to USAID as 14m more deaths forecast without it - The Independent - July 2nd, 2025 [July 2nd, 2025]
- Obama, Bush and Bono eulogize USAID on final day - The Week - July 2nd, 2025 [July 2nd, 2025]
- House Republicans call for investigation into Obama-appointed judge in Trump funding case - AOL.com - July 2nd, 2025 [July 2nd, 2025]
- Donald Trump's 'colossal mistake' BLASTED by Obama and Bush during surprise reunion that left Bono in tears - Daily Mail - July 2nd, 2025 [July 2nd, 2025]
- Physician Tina Shah, who served in Obama and Biden administrations, will challenge Kean in NJ-7 - New Jersey Globe - July 2nd, 2025 [July 2nd, 2025]
- Michelle Obama shares the three words her dying mother said that changed her outlook on life - TheGrio - July 2nd, 2025 [July 2nd, 2025]
- Michelle Obama's podcast puts her in limelight in new Trump era, but she's not coming to Democrats' rescue - Fox News - July 2nd, 2025 [July 2nd, 2025]
- Bush and Obama fault Trumps gutting of USAID on agencys last day - MSN - July 2nd, 2025 [July 2nd, 2025]
- Don Jr.: "Affirmative Action" is why Obama won Nobel, not Trump - CNN - June 29th, 2025 [June 29th, 2025]
- A former Obama speechwriter learned to surf with his Joe Rogan-loving brother-in-law. Heres what happened next. - Inquirer.com - June 29th, 2025 [June 29th, 2025]
- The key difference between Obama and Trump on immigration - Orange County Register - June 29th, 2025 [June 29th, 2025]
- Michelle Obama shares 4 words her mom said at the end of her life that stuck with her - NPR - June 29th, 2025 [June 29th, 2025]
- Michelle Obama Discusses Parental Pain After Malia Changes Her Last Name to Push Away From Her Parents - Yahoo - June 29th, 2025 [June 29th, 2025]
- Michelle Obama Emotionally Shares Impact of 3 Words from Her Dying Mother - MSN - June 29th, 2025 [June 29th, 2025]
- Michelle Obama Reveals the Four Dying Words from Her Mother That Changed the Way She Lives Her Life - parade.com - June 29th, 2025 [June 29th, 2025]
- Michelle Obama reveals why shes rarely seen with Barack - Yahoo - June 29th, 2025 [June 29th, 2025]
- See the photos of Barack Obama School for Social Justice graduation ceremony - Lohud - June 29th, 2025 [June 29th, 2025]
- Viral video: Michelle Obama tears up while remembering her mother, reveals her take on death | Watch - Mint - June 28th, 2025 [June 28th, 2025]
- Michelle Obama says Barack Obama divorce rumor reactions are like 'the apocalypse' - USA Today - June 28th, 2025 [June 28th, 2025]
- This week in whoppers: Former aide's 'anti-war' Obama fantasy, Nina Turner's ignorance on Iran's abuse of women and more - New York Post - June 28th, 2025 [June 28th, 2025]
- Obama and Biden sent American taxpayers' money to Iran...: White House reveals - WION - June 28th, 2025 [June 28th, 2025]
- Trump Jr Says Obama Getting Nobel Prize Over Father Is 'Affirmative Action' - Newsweek - June 28th, 2025 [June 28th, 2025]
- Michelle Obama Gets Emotional Talking About the 3 Powerful Words Her Mom Said While Dying - People.com - June 28th, 2025 [June 28th, 2025]
- Ex-Obama aide says its insane to think Cuomo is best choice for New York mayor as it happened - The Guardian - June 28th, 2025 [June 28th, 2025]
- We are 60: Michelle on divorce rumors, explains why she's rarely seen with Barack Obama - Times of India - June 28th, 2025 [June 28th, 2025]
- Ex-Obama aide: Insane to think Cuomo better than democratic socialist - The Hill - June 28th, 2025 [June 28th, 2025]
- Michelle Obama addresses divorce rumors and why shes rarely seen with Barack: Were 60, yall - New York Post - June 28th, 2025 [June 28th, 2025]
- Democrats are more likely than Republicans to support naming public places after Obama, Harvey Milk, and Malcolm X - YouGov - June 28th, 2025 [June 28th, 2025]
- Trump Jr. says Barack Obama getting Nobel Peace Prize over his father is affirmative action - TheGrio - June 28th, 2025 [June 28th, 2025]
- Michelle Obama addresses rumors of the end of our marriage - The Hill - June 28th, 2025 [June 28th, 2025]
- Michelle Obama reacts to divorce rumours: Were 60, yall! - The Indian Express - June 28th, 2025 [June 28th, 2025]
- Michelle Obama mocks rumors that her marriage is in trouble - Fox News - June 28th, 2025 [June 28th, 2025]
- Michelle Obama Addresses Divorce Rumors and Why Shes Rarely Seen with Husband Barack - instyle.com - June 28th, 2025 [June 28th, 2025]
- Michelle Obama addresses the Barack Obama divorce rumors with humor - HOLA - June 28th, 2025 [June 28th, 2025]
- Megyn Kelly parodies Michelle Obama as she hits out at former first lady for 'never having a positive word to say' - Daily Mail - June 28th, 2025 [June 28th, 2025]
- Michelle Obama Explains Her Rare Public Outings With Barack - The Daily Beast - June 28th, 2025 [June 28th, 2025]
- Michelle Obama says Barack Obama divorce rumor reactions are like 'the apocalypse' - MSN - June 28th, 2025 [June 28th, 2025]
- Michelle Obama reveals why shes rarely seen with Barack - The Telegraph - June 28th, 2025 [June 28th, 2025]
- Michelle Obama Just Revealed Why She's Glad She Didn't Have Boys, And Her Reason Makes Sooo Much Sense - BuzzFeed - June 28th, 2025 [June 28th, 2025]
- Michelle Obama addresses lack of public appearances with husband Barack following divorce rumors - The Independent - June 28th, 2025 [June 28th, 2025]
- Obama CBA Coalition adds the $9B Illinois quantum park to its fight for environmental and housing justice - The TRiiBE - June 24th, 2025 [June 24th, 2025]
- Michelle Obama says a line her mom used to repeat about parenting always stuck with her - Business Insider - June 24th, 2025 [June 24th, 2025]
- Rewind: Did Trump claim in 2011 that Obama would start war with Iran to get elected? - Snopes.com - June 24th, 2025 [June 24th, 2025]
- Obama will start a war with Iran to win re-election: Amid US strikes on Tehran, Donald Trumps old twe - Times of India - June 24th, 2025 [June 24th, 2025]
- Did Netanyahu coerce Trump into attacking Iran? No but he tried with Obama - The Forward - June 24th, 2025 [June 24th, 2025]
- Why Michelle Obama Is "So Glad" She Didn't Have a Son With Husband Barack Obama - Marie Claire - June 24th, 2025 [June 24th, 2025]
- Froma Harrop: Barack Obama speaks, and it's the truth - Grand Forks Herald - June 24th, 2025 [June 24th, 2025]
- Michelle Obama: Im glad I dont have a son he would have turned out like my husband - The Telegraph - June 22nd, 2025 [June 22nd, 2025]
- How does an Obama speechwriter befriend a Joe Rogan fan? Via surfing - The Guardian - June 22nd, 2025 [June 22nd, 2025]
- Michelle Obama Jokes She's 'Glad' She Never Had a Boy Because He 'Would've Been a Barack': 'Would've Felt for Him' - People.com - June 22nd, 2025 [June 22nd, 2025]
- Why Michelle Obama Didn't Want to Have A Boy With Husband Barack - parade.com - June 22nd, 2025 [June 22nd, 2025]
- Why Michelle Obama Is Glad She Didnt Have a Son With Husband Barack Obama - E! Online - June 22nd, 2025 [June 22nd, 2025]
- Michelle Obama says she's 'so glad' she never had a son, says he 'would have been a Barack Obama' - Fox News - June 22nd, 2025 [June 22nd, 2025]