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Sorry, It Won’t End Anytime Soon
Aug 2, 2022 15:52:53   #
Peaver Bogart Loc: Montana
 
The Dems’ New Proposal Does Nothing To Lower Inflation – David Harsanyi

Continuing with the Dems’ calling bills the exact opposite of what they do (think “Affordable Care Act”, “Voting Rights Act”, “Employee Free Choice Act”), the new spending binge is hilariously called the “Inflation Reduction Act.” Let me break down why inflation won’t end as long as Biden is in office. The current inflation has 4 primary causes that have nothing to do with Russia-Ukraine:

The Labor Shortage. When you have a shortage of workers, wages go up, which sounds great, but unfortunately that adds to the input cost of every good & service we buy. A while back I wrote of the labor shortage causes and steps to fix it, none of which have been adopted by Biden.

Energy Costs. Biden’s war on fossil fuels filters into everything: transportation of goods, factory power costs, retail store air conditioning, and so on. Until the Dems unshackle the American energy industry, nothing will change.

Covid Restrictions & Requirements. China is the worst violator, but unfortunately, they and other countries have cut off or delayed crucial inputs. Western countries are slightly better for now, but every restriction, such as vaccine border checks, just slows down productivity and adds overhead costs.

Government Spending & Central Bank Money Printing. This is perhaps the biggest reason inflation is prevalent around the world. While getting my Finance degree in college and observing decades of financial history, I can’t think of a more insanely stupid economic policy than the now world dominant Modern Monetary Theory, which essentially says it doesn’t matter how much governments spend since they can just inflate their currencies indefinitely to cover it. An Economics 101 student should be able to diagram their first week why this is destined to fail. But the Democrats show no sign of slowing down, and the RINOs currently in control of the Republican Party aren’t much better. Central banks can help in the short-term by contracting the money supply, which they’re doing now by raising interest rates, but that mainly works because it trashes economies to the point that people don’t have money to spend, and it’s only a short-term fix. This inflationary cause can only be solved long-term by balancing budgets, paying down debt, and stabilizing currencies. Few politicians have the political courage to make the spending cuts. I’m optimistic this could be solved by a leader who can educate the public about why cuts are needed. People are now far more open-minded after seeing the results of the brutal Leftist policies.

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Aug 2, 2022 17:49:22   #
TommyRadd Loc: Midwest USA
 
Peaver Bogart wrote:
The Dems’ New Proposal Does Nothing To Lower Inflation – David Harsanyi

Continuing with the Dems’ calling bills the exact opposite of what they do (think “Affordable Care Act”, “Voting Rights Act”, “Employee Free Choice Act”), the new spending binge is hilariously called the “Inflation Reduction Act.” Let me break down why inflation won’t end as long as Biden is in office. The current inflation has 4 primary causes that have nothing to do with Russia-Ukraine:

The Labor Shortage. When you have a shortage of workers, wages go up, which sounds great, but unfortunately that adds to the input cost of every good & service we buy. A while back I wrote of the labor shortage causes and steps to fix it, none of which have been adopted by Biden.

Energy Costs. Biden’s war on fossil fuels filters into everything: transportation of goods, factory power costs, retail store air conditioning, and so on. Until the Dems unshackle the American energy industry, nothing will change.

Covid Restrictions & Requirements. China is the worst violator, but unfortunately, they and other countries have cut off or delayed crucial inputs. Western countries are slightly better for now, but every restriction, such as vaccine border checks, just slows down productivity and adds overhead costs.

Government Spending & Central Bank Money Printing. This is perhaps the biggest reason inflation is prevalent around the world. While getting my Finance degree in college and observing decades of financial history, I can’t think of a more insanely stupid economic policy than the now world dominant Modern Monetary Theory, which essentially says it doesn’t matter how much governments spend since they can just inflate their currencies indefinitely to cover it. An Economics 101 student should be able to diagram their first week why this is destined to fail. But the Democrats show no sign of slowing down, and the RINOs currently in control of the Republican Party aren’t much better. Central banks can help in the short-term by contracting the money supply, which they’re doing now by raising interest rates, but that mainly works because it trashes economies to the point that people don’t have money to spend, and it’s only a short-term fix. This inflationary cause can only be solved long-term by balancing budgets, paying down debt, and stabilizing currencies. Few politicians have the political courage to make the spending cuts. I’m optimistic this could be solved by a leader who can educate the public about why cuts are needed. People are now far more open-minded after seeing the results of the brutal Leftist policies.
b The Dems’ New Proposal Does Nothing To Lower In... (show quote)


We’ve heard this song and dance before. Remember when Obama told us to get used to the “new normal” and then Trump came and reversed it proving that leftist policies were directly to blame?

Dem and RINO politicians must just want us to be in a bad financial situation. That’s the only reasonable explanation since they seem to be doing everything they can to exacerbate the problem… while trying to make it appear they are “fixing” it. They’re “fixing” it alright; but not for the sake of hard-working Americans, rather, only for “their” ruling class.

Reply
Aug 2, 2022 23:00:52   #
Peaver Bogart Loc: Montana
 
TommyRadd wrote:
We’ve heard this song and dance before. Remember when Obama told us to get used to the “new normal” and then Trump came and reversed it proving that leftist policies were directly to blame?

Dem and RINO politicians must just want us to be in a bad financial situation. That’s the only reasonable explanation since they seem to be doing everything they can to exacerbate the problem… while trying to make it appear they are “fixing” it. They’re “fixing” it alright; but not for the sake of hard-working Americans, rather, only for “their” ruling class.
We’ve heard this song and dance before. Remember w... (show quote)


I just have one question. When is America going to wake up.

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