Joe Biden is lying about the economy, claiming Trump's successes as his own
President Biden continues to lie that he inherited the worst economy since the great depression. Even the fact-checkers in the mainstream press are calling him out on that one.
Biden said he inherited the "worst economic crisis since the Great Depression." But when he took office, the economy had recovered some from its low point earlier in the pandemic.
The facts show that the economy came out of recession nine months before Biden took office, and it came out of recession because of the rapid response of Trump to the virus, including getting the vaccine, and the fact that several Republican governors decided to let their states' economies thrive instead of keeping them locked down.
Economists were predicting rapid economic and job growth for 2021 before Biden took office. Reports like this came out:
The recession that broke out with the onset of the coronavirus pandemic lasted just two months, officially ended in April 2020. That makes it the shortest downturn on record, according to the committee of economists that determines when recessions begin and end.
Obama, Biden, and most of the media continue to claim that their policies brought the economy out of the recession they inherited when they took office in January 2009.
The facts show that the economy came out of recession 130 days after they took office, before their policies could have had any effect. Here was the news back then:
The economy collapsed because of several things in 2007/2008 including over leverage by consumers and businesses, a housing bubble caused greatly by inflated appraisals, ratings agencies like Moody giving high ratings to junk mortgages, government sponsored entities like Fannie and Freddie using these high ratings to justify buying these junk mortgages and over $4 gasoline prices pushed up by speculators.
The economy came back by June of 2009 because the government passed TARP in 2008 to lend money to banks and other financial entities to shore up their balance sheet after some entities like Lehman Brothers collapsed. Unlike the massive relief given out today the entities mostly paid these loans back and the government made a profit. State governments are not required to pay their massive kickbacks today.
It also came back because the Federal Reserve rapidly dropped interest rates and started buying bonds to improve liquidity.
The third reason the economy came back is probably the most important. President Bush opened drilling in July of 2008 by executive order because the obstructionists Democrats in Congress would not go along. This lowered the price by over $2 per gallon to $1.85 by the time Obama/Biden took office. This one action greatly improved the purchasing power of everyone, but it especially helped the poor, middle class and small businesses, Democrats only pretend to care about. It also greatly improved the inflation outlook.
In December 2013, the Treasury wrapped up TARP and the government concluded that its investments had earned more than $11 billion for taxpayers. To be more specific, TARP recovered funds totaling $441.7 billion from $426.4 billion invested.
The cost of gas in June of 2008, the early stages of the heavy summer driving season and during the presidential campaign, was $4.10 per gallon.
Average gas prices on Jan. 19, 2009 were $1.85 a gallon.
That might be because of this:
Yet the "experts" at Goldman Sachs had predicted $200-per-barrel crude oil prices in late 2008.
Goldman, once warning of $200 oil, sees $45 in 2009
Goldman Sachs' energy equity research team, which predicted a crude oil spike to $200 a barrel earlier this year, slashed on Friday its 2009 forecast to just $45 as demand deteriorates.
The White House, journalists, and social media giants claim they are all about facts and blocking misinformation, so why are Biden and others allowed to continue spreading their lies about the economy and their results?
Journalists should compile a list of proposed policies of Biden and other Democrats meant to help the private sector versus making the government more powerful and more people dependent on the government.
I can't come up with any.
Image: MaxPixel, CC0 public domain.