The US economy is on the verge of a financial crisis that it has never seen. Corrupt politicians are to blame.
Inflation was trending down under President Trump before he left office.
The Washington Examiner shared a discussion between Senator Rand Paul and Larry Kudlow:
Sen. Rand Paul explained to Fox Business‘s Larry Kudlow why inflation is a result of irresponsible government policies, particularly those Democrats advocate, further calling it a “tax on the poor.”
“Democrats should have to explain why that’s what they’re for and why their policies have caused this,” he told Kudlow. “Instead, the Democrats say, ‘Oh, it’s greed, somehow people got greedy this year and greed causes inflation.’”
“That is ridiculous and shouldn’t bear any kind of consideration by rational individuals.”
“It is almost always government’s fault,” Paul added, citing the “ridiculous government lockdown policy.”
The good news is, federal policymakers know what spurred inflation to its historic gallop over the last year. The bad news is, it was them.
That’s why Congress and President Biden spent 2021 ignoring inflation or insisting it was merely “transitory.” It’s not. The four-decade high 7% inflation rate Americans endured last year jumped to 7.9% in February and seems headed even higher. Contrary to Democrats’ misdirection, this inflation wasn’t caused by COVID-19, but by the federal government’s ham-handed responses to it.Congress has pumped more than $6 trillion in COVID relief into the U.S. economy, while the Fed injected $4.7 trillion into financial markets. Congress authorized almost $2 trillion of this “relief” in 2021, long after most of the country had largely returned to normal, when even progressive economists warned it could trigger inflation. Much of this cash was given to businesses that never closed and households whose wages never fell. Yet the president and his party insisted all their spending was urgently needed…
…For all the president’s promises about raising taxes only on the rich, all Americans pay inflation’s “hidden tax” – at the gas pump and checkout counters, in utility bills, rents and car payments. The cost of living in 2021 grew faster than wages, so despite all those trillions we spent in “relief,” and despite soaring costs to employers and small businesses, American workers have less purchasing power today than they did a year ago.
Former Reagan economist Art Laffer says that interest rates have to be higher to stop inflation.
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