The US "Wall Street Journal" website published an article "Biden stagflation is coming" on December 13. The authors are Phil gram, former chairman of the US Senate Banking Committee and visiting scholar of the American Enterprise Research Institute, and Mike Soren, partner of the US policy research company. The full text is excerpted as follows:



The White House continues to insist that inflation will soon recede and that the United States will resume the boom before the COVID-19 outbreak. But the Biden administration's regulatory agenda actually ensures that the economy after the epidemic will be completely different from before. Biden's executive order will bring an increasing regulatory burden, the open hostility of his regulators to the U.S. economic system, and the return to the anti-monopoly law enforcement model in the progressive era, which will curb economic growth. All the factors that turn current inflation into stagflation will appear.



The painful experience of excessive regulation in the United States is still close at hand. When the recession triggered by the subprime mortgage crisis ended in mid-2009, economists predicted a strong economic recovery. At the beginning of 2010, the office of administration and budget had predicted that the average growth rate of real gross domestic product (GDP) in 2016 would be 3.7%, the Congressional Budget Office estimated that the growth rate in the same period would be 3.3%, and the Federal Reserve expected that the growth rate would be 3.5% to 4% in 2014. In fact, during the economic recovery from 2010 to 2016, GDP growth fell to 2.1%, the lowest level in 80 years.