Joe Biden’s Latest Policy Mistake Hurts Americans, Economist Warns

Joe Biden's Latest Policy Mistake Hurts Americans, Economist Warns

(RightWing.org) -In March 2021, Congress approved the American Rescue Act. Several former Democratic Treasury officials and the GOP warned that if Democrats passed the partisan measure, it would cause inflation to spike. Throughout the summer, fall, and into winter, Sen. Joe Manchin (D-WV) warned that inflation was America’s Achilles heel and that he wouldn’t support spending trillions of taxpayer dollars on social and climate change programs when the government couldn’t even afford to fund Social Security and Medicare.

On Wednesday, March 23, King’s College economics professor Brian Brenberg told “Fox & Friends First” that no American can escape the exploding rise in prices. In February, the government reported that inflation spiked a whopping 7.9% compared to February 2021. It was the largest rise in consumer prices since 1981, and for six months straight, inflation broke records month-over-month.

Biden’s Policy Mistake Hurts America

A year ago, President Joe Biden refused to acknowledge that inflation was settling in. Instead, the president said the government expected rising prices as the US economy emerged from the shadows of lockdowns, shutdowns, and COVID-19 mitigation efforts. He was still claiming inflation was transitory and temporary by summer and fall despite many economists’ warnings it was not.

On Monday, March 21, Biden tweeted his economic successes:

Brenberg told Fox he couldn’t understand why Biden was saying this stuff. The jobs were created, unemployment dropped, the economy grew, and the deficit came slightly down as a natural process of people returning to work and purchasing goods after 20 million were stuck on unemployment in 2020. It had nothing to do with the president’s policies.

Instead, the economics professor said Biden’s energy policies sparked inflation, and Democratic big-spending put it over the top. Brenberg added that if prices continue to rise, America risks dealing with long-term stagflation. He warned there won’t be a middle class if things keep going this way.

What Is Stagflation?

Stagflation is an economic phenomenon created when the economy experiences stubborn slow growth, high unemployment, and rising prices. Stagflation is a perfect economic storm that sends shock waves through an economy.

Many factors contribute to stagflation, but the most essential ingredient is the money supply. In 2020, Congress and the Federal Reserve injected over $6 trillion to bolster the economy. In 2021, congressional Democrats threw another $1.9 trillion on top of it. This is why the Federal Reserve is moving quickly to remove money from the economy by increasing interest rates.

Fed presidents agree that the central bank must increase interest rates, but debate how much. Consensus is growing that a quarter-point at a time isn’t going to stop inflation that now is partially driven by realities in Ukraine. If Ukrainians can’t supply grain to the world, food prices could explode further. As Europe moves to cut off Russian oil, energy prices will continue to climb to new highs.

Brenberg warned that the US economy would likely experience slow growth, businesses may pull back on hiring, and wages won’t rise. He said that’s the problem all of us are likely to face sooner than later.

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