The most important thing to understand about the persistent inflation that has destroyed 20 percent of the dollar’s purchasing power since Joe Biden took office is that inflation is not the target of government policies designed to eliminate it. Inflation is the creation of government policies and government policies intentionally perpetuate inflation to enable the government to default unlawfully on its otherwise unsustainable debt.
Inflation is always and everywhere the result of government policies that increase the supply of money circulating in the economy faster than the productive sectors of the economy can expand their capacity to produce goods and services for purchase.
From day one, the Biden administration has flooded the economy with borrowed money in the form of transfer payments, subsidies, and grants designed to secure the political support of favored constituencies such as those in the green tech sector.
At the same time, Biden-controlled federal agencies have unleashed a tidal wave of crushing regulation designed to reduce the productive capacity of disfavored constituencies such as the oil and gas industry.
The destructive combination of these irresponsible policies, blowout spending that stoked demand and stifling regulation that choked supply, inevitably created the inflation that has so dramatically degraded the value of our dollars during the last three and a half years.
President Biden has asserted that fighting inflation is the top economic priority of his administration. Nothing is farther from the truth. There is no war on inflation. The president has no intention of altering the irresponsible spending and regulatory policies that define and drive the progressive agenda.
Those policies have produced a mountain of new government debt. Under President Biden, the national debt has increased a whopping $13 Trillion and now stands at close to $35 Trillion. The national debt continues to increase by almost $3 Billion per day; $120 Million per hour; $2 Million per minute. The national debt is now larger than the total value of all the goods and services currently produced by the American economy. This fiscal year, the government is spending more on interest payments just to service its debt than it is spending on national defense or Medicare.
Concerned observers are in total agreement. The ever-growing national debt burden of the United States is unsustainable. It poses a deadly serious threat to our economic well-being and national security. If not addressed effectively, it will lead to a financial crisis of devastating severity.
The government could get its financial house in order by slashing wasteful spending and rescinding onerous regulations that stifle productive economic activity. Such actions would slow the growth of new government debt and, by expanding the economy, increase the tax revenues needed to pay down existing debt. Sadly, there is no chance the government will take such corrective actions so long as it remains under the control of progressives and their ruinous economic policies.
Tony Webster via Wikipedia
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