Lunacy: Biden calls for huge new government spending to...beat inflation
We see no awareness of how inflation builds from the supply chain — that when a producer has higher input costs for raw goods, he needs to pass on his costs to the next guy down the line buying it — the factory, the retailer, the broker — and those guys need to pass that higher cost onto the next guy, the wholesaler, the consumer, and so on. The guy at the end of it, the consumer, is the one who gets burned since he has no one to pass it on to.
That explains why inflation is all over the place, in everything from gas costs to vegetable costs to used car costs to lumber and paper costs, and consumers are enraged — it's the number-one issue that's tanking Biden in the polls.
Biden is busy targeting individual producers, selected for political purposes, of course — meat-packers, oil companies — for "gouging," as well as individual drug costs (notice that he's not targeting Big Pharma, just the costs), and imagining that that's all it takes to get this monster under control.
He's blaming the supply chain in his sorry interview:
...making himself all over the place in what is causing inflation. At other times, he's blaming COVID. At other times still, he's claiming it's not his show and that inflation is global.
In reality, "inflation is always and everywhere a monetary phenomenon," as Milton Friedman put it. That puts the blame squarely on the Fed, and more specifically, the Fed's capacity for turning on the money presses. Why is the Fed doing that? To pay for Joe Biden's monster spending programs already passed in Congress, on top of the big spending packages passed during the Trump administration, and the monster packages passed during the Obama administration. Biden's programs — at least two or three already — COVID relief, infrastructure, other stuff — require the Fed to print money to get them "paid for," and after that happens, the money floats around in the system with no place to go. That's where inflation comes from.
Biden has declared that Friedman, the late Nobel Prize-winning economist who informed the great economic boom of the Reagan era, as well as impressive economic booms wherever he went (looking at you, Chile) "is not in charge anymore," and well, yeah. Biden is all in for the creepy concept known as "Modern Monetary Theory" instead, which claims that the government can spend as much as it likes, and somebody else will be responsible for the inflation. I have no doubt that insofar as he might ever think about monetary matters (a big "if"), he actually believes this. Government spending is at the root of the problem here; we all are feeling it. Biden is still yelling about how he's going to "work like the devil" to lower gas prices.
Here's how pathetic he is:
“I’m going to work like the devil to bring gas prices down,” Biden said Thursday in Culpeper, Virginia, addressing America's record-high inflation rate https://t.co/jDnFNwbSCP pic.twitter.com/xJOv5TlqyE— Bloomberg Quicktake (@Quicktake) February 10, 2022
This guy doesn't work. All he does is spend. Every solution to every problem is solved by Biden by spending, including the thorny issue of drug addiction, where, reportedly, he's authorized "safe smoking kits" for addicts with credible reports that those kits include crack pipes. His latest scheme is wage hikes for federal bureaucrats to beat inflation — to be financed by printing money. The only other alternative is unpalatable tax hikes.
Now we have inflation, monster, monster inflation, and not only are economists predicting that it will go up but also that it won't be gone any time soon this year, even when the Fed goes through with its three expected rate hikes.
Republicans, not surprisingly, are seizing on this issue, knowing that that's what the voters are thinking about, and rightly so.
Now that's a hockey stick.
Cruz is a quality Republican, but the entire Republican record is rather mixed. Will Republicans of all stripes be serious about this and cure their own high-spending habits? One hopes so because there's no other way to go to fix this monster but by cutting spending and laying off bureaucrats. Most of Biden's self-vaunted job growth has gone to the hiring of government bureaucrats to "supervise" us, so the extent of the problem is clear. This clown has too much power and too little brain, and he cannot beat inflation by sweeping it under the rug, gaslighting that it doesn't exist, or spending more government money. All he manages to do is make the monster bigger and the picture uglier.
He's basically running around with a flamethrower to a house on fire and telling us it's a firehose.
Image: Twitter screen shot.