Biden Downplays Inflation Crisis: “Not Everybody Is Looking for a Used Automobile,” Psaki Says “Doesn’t Matter What You Call It”

On 12/10/2021, President Biden downplayed his administration’s historic inflation crisis during remarks at the “Summit for Democracy,” saying Americans blame him for inflation because it is “hard for people to think about.” Press Secretary Jen Psaki dismissed the question of whether inflation was “transitory,” saying “doesn’t really matter what you call it,” and suggested that Americans “who look at data” primarily live in New York.

Biden: “Not Everybody Is Looking for a Used Automobile”

Biden acknowledged inflation but attempted to minimize its scope. “The biggest, one of the — a third of the increase in inflation is used automobiles,” Biden said. “Not everybody’s looking for a used automobile, but those who are, they’re paying higher prices because there’s fewer of them because of COVID.”

Biden blamed the inflation crisis entirely on supply chain problems. “The reason for the inflation is that we have a supply chain problem that is really severe and is causing a significant increase in prices,” he said. He insisted his Build Back Better bill would help: “It’s not going to increase inflation, it will diminish inflation. It has a negative impact on inflation, it doesn’t raise inflation.”

“But that’s hard for people to think about right now, because inflation is up and there’s a direct correlation in most people’s minds: why is inflation — will the government spend the money?” Biden said. “Well, that’s not the reason for the inflation.”

Psaki: “Doesn’t Matter What You Call It”

When a reporter noted that Federal Reserve Chair Jerome Powell had said “transitory” was no longer the right way to describe inflation and that factors pushing prices upward would “linger well into next year,” Psaki refused to engage with the terminology. “I think part of the point here is that doesn’t really matter what you call it,” Psaki said. “Our view, but more importantly, the view of the Federal Reserve, private sector forecasters and the markets, has been and remains that inflation will ease over time.”

Pressed on what to say to families suffering from rising prices who “hear a term like ‘well into next year’ and they feel panicked,” Psaki said, “I would say that we take the rise in prices that impacts individual families, small businesses, anyone across this country, incredibly serious."

"Americans Who Look at Data” Live in New York

A reporter asked Psaki why, despite data points moving in the right direction, so many Americans were pessimistic about the economy. Psaki’s response raised eyebrows. “There are certainly Americans who look at data — I’m not suggesting that — many of them work in New York and other places,” she said, appearing to suggest that ordinary Americans outside New York did not look at economic data.

Psaki then argued that “the way people experience it is not by looking at charts in the paper” but by what they pay at the grocery store and the gas pump. She attributed public pessimism to COVID fatigue: “People’s psychology on the economy is related to COVID and the fact that we’re still in a fight against this virus. People expected it to be over sooner.”

The “Fake CBO Score” Exchange

Psaki aggressively attacked a Republican-circulated modified CBO score that estimated the cost of Build Back Better if all programs were made permanent without being paid for. She called it “a fake CBO score” and quoted Norm Ornstein of the American Enterprise Institute: “You can’t assume programs will be extended just because Lindsey Graham wants to assure that. An estimate based on what’s not in the bill is bogus and fundamentally dishonest.”

When a reporter pressed whether Biden would support extending Build Back Better programs only if they were paid for, Psaki said: “He would only support extending these programs if they were paid for — period.” She added: “He is a person who is fiscally responsible, unlike the person who asked for the fake CBO score.”

But when the reporter pushed further, envisioning a scenario where individual programs came up for renewal, Psaki pulled back. “I’m not going to get ahead of a hypothetical,” she said, adding that “the President has been clear about his intention to pay for these programs.”

Psaki Cannot Confirm Harris Contact With Mexico

Following reports of a truck carrying migrants that was heading for the U.S. border, a reporter asked if Vice President Kamala Harris — who had been designated as the administration’s point person on root causes of migration — was in contact with Mexican officials. Psaki was unable to say. “It would really come through the Department of Homeland Security, that kind of outreach,” she said. “I can check and see, but I suspect that conversation would first happen through the Department of Homeland Security.”

Schools and COVID Restrictions

Asked about strict COVID rules inside schools — including requiring students to eat outside and not talk to each other during meals — Psaki defended the practices. “I have a three-year-old who goes to school, sits outside for snacks and lunch, wears a mask inside, and it’s no big deal to him,” she said. “I’m not saying that’s the case for everybody, but these are steps that schools are taking to keep kids safe.”

Key Takeaways

Biden blamed a third of inflation on used automobile prices and said Americans associate inflation with government spending because it is “hard for people to think about.”
Psaki dismissed the debate over whether inflation was “transitory,” saying “doesn’t really matter what you call it.”
Psaki suggested Americans “who look at data” primarily live in New York, attributing public pessimism about the economy to COVID fatigue rather than rising prices.
She called a Republican-modified CBO score showing Build Back Better’s full cost “a fake CBO score” and “fundamentally dishonest.”
Psaki was unable to confirm whether Vice President Harris, the administration’s migration point person, had been in contact with Mexico about border issues.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

The biggest, one of the, a third of the increase in inflation is used automobiles. Not everybody’s looking for a used automobile.
It’s not going to increase inflation, it will diminish inflation. But that’s hard for people to think about right now.
I think part of the point here is that doesn’t really matter what you call it.
There are certainly Americans who look at data. I’m not suggesting that. Many of them work in New York and other places.
People’s psychology on the economy is related to COVID. People expected it to be over sooner.
This is not a CBO score. This is a fake CBO score.
He would only support extending these programs if they were paid for. Period.
I have a three-year-old who goes to school, sits outside for snacks and lunch, wears a mask inside, and it’s no big deal to him.

Full transcript: 2209 words transcribed via Whisper AI.