Excessive taxes, spending, and government regulation have once again gripped America thanks to the policies of Biden, Harris, and the progressives. The predictable result is higher prices for everything and a repeat of the Carter Misery Index from which President Reagan rescued us beginning in 1981.
According to the Bureau of Labor Statistics, and as confirmed by Americans for Tax Reform, since January 2021:
- Gasoline prices have increased by 45% and other energy prices by 24.5%
- The price of bacon has increased by 8.4% and seafood prices by more than 6%
- The price of fresh milk has increased by 7.5% and fresh fruits by 8.4%
- Prices for major appliances are up 14% and furniture and bedding have increased 8.5%
- Airfares have increased by nearly 25%
The root of inflation is too much money chasing too few goods, as our economist friend Milton Friedman frequently observed. The New York Times warns that inflation also results in long-lasting damage if wages don’t keep up.
Driving this inflation is the largest federal budget since World War 2. President Biden proposes not only new infrastructure expenditures but rapidly expended direct payments to families in child tax credits and for elder care as well as other “cradle to grave” welfare support.
Biden claims all this new spending will ease inflation. We’re wondering what economics principle he is citing to make this outrageous conclusion. If simply spending more money cures these recent price hikes, why not spend more? Why not another $60 trillion instead of only $6? Preposterous. We’re currently suffering these record-setting price jumps precisely due to the $6 trillion we have already juiced into the economy. The last thing the economy needs is more liquidity.
Of course, “Biden” isn’t claiming anything; he’s being set up to make these claims, on the occasions they shoot him full of whatever psychotropic cocktail they are using to make him semi-lucid long enough to mumble through a press conference.
But even so; it’s rapidly becoming apparent that we’re in the beginning stages of a Nixon/Ford/Carter era stagflation cycle, and the people in the Imperial City have damn few notions as to what’s happening or how to fix it. And those of us who lived through the Seventies might remember how that cycle was broken; the deliberate imposition of a recession and high interest rates to break the cycle.
The longer the Biden(‘s handlers) Administration continues to mess things up, the greater the likelihood that whoever inherits this calamity will have to destroy the village in order to save it.