How Biden Broke the Economy, and How To Fix It

m.knox

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Aug 20, 2003
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If democrats simply understood that private sector employers are the key to a good economy.

https://www.foxbusiness.com/politics/biden-must-do-right-now-fix-broken-economy

To the surprise of no one outside the White House, a recent ABC News/Washington Post poll showed that 74 percent of Americans believe the economy is in bad shape, up from 58 percent in the spring of 2021. With 84 percent or respondents identifying the economy as a top issue in the upcoming midterm elections and 74 percent saying the same about inflation, why does the Biden administration seem more intent on exacerbating the problems than addressing them? Let’s take a look at how Biden got us into the current economic crisis and what he could do to get us out of it.

While there are many moving pieces in any economy, the root causes of inflation are relatively straightforward. In normal economic times, the markets balance supply and demand minimizing inflation. For example, if the demand for a particular retail good is high, but the supply of that good is low, retailers will increase prices resulting in reduced demand. When the supply of a particular good is greater than the demand, retailers will lower their prices increasing demand.

The goal is to keep supply and demand in balance and our free market economy naturally trends towards that balance (which was the case during the Trump administration). Problems arise when the government intervenes.

During the pandemic, the government intervened big time by approving $4.1 trillion in relief measures under President Donald Trump. This made sense under the circumstances as people were unable to work and needed to pay their bills. But pandemic restrictions made it impossible for them to spend at traditional levels. So, it was obvious to virtually everyone that coming out of the pandemic we were going to experience accelerated demand.

It was also obvious that the supply of goods would be low. Businesses were unable to determine either what to produce or what to order during the pandemic as there was no clear timeline for when it would end.

As Biden took office, vaccines became available, and things started returning to normal. Economists who had served in both Democrat and Republican administrations saw the problem – demand was unnaturally high, and supply was unnaturally low. They warned Biden and his Democrat allies that increased government spending would juice demand driving inflation. The Biden administration ignored the advice, denied the existence and severity of any problem, and spent with the abandon of drunken sailors.

In March of 2021 Biden and the Democrats unilaterally and unnecessarily passed their $1.9 trillion spending bill (ironically called the American Rescue Plan) at a time when most Americas were already flush with cash. That released the inflation Kraken. To make matters worse, it was followed by a $1.1 trillion infrastructure bill, a climate change bill with $437 billion in spending (absurdly called the Inflation Reduction Act) and a $400 billion student loan write off. Not surprisingly, inflation surged and continues at levels not seen in 40 years.
 
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psuted

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Nov 26, 2010
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If democrats simply understood that private sector employers are the key to a good economy.

https://www.foxbusiness.com/politics/biden-must-do-right-now-fix-broken-economy

To the surprise of no one outside the White House, a recent ABC News/Washington Post poll showed that 74 percent of Americans believe the economy is in bad shape, up from 58 percent in the spring of 2021. With 84 percent or respondents identifying the economy as a top issue in the upcoming midterm elections and 74 percent saying the same about inflation, why does the Biden administration seem more intent on exacerbating the problems than addressing them? Let’s take a look at how Biden got us into the current economic crisis and what he could do to get us out of it.

While there are many moving pieces in any economy, the root causes of inflation are relatively straightforward. In normal economic times, the markets balance supply and demand minimizing inflation. For example, if the demand for a particular retail good is high, but the supply of that good is low, retailers will increase prices resulting in reduced demand. When the supply of a particular good is greater than the demand, retailers will lower their prices increasing demand.

The goal is to keep supply and demand in balance and our free market economy naturally trends towards that balance (which was the case during the Trump administration). Problems arise when the government intervenes.

During the pandemic, the government intervened big time by approving $4.1 trillion in relief measures under President Donald Trump. This made sense under the circumstances as people were unable to work and needed to pay their bills. But pandemic restrictions made it impossible for them to spend at traditional levels. So, it was obvious to virtually everyone that coming out of the pandemic we were going to experience accelerated demand.

It was also obvious that the supply of goods would be low. Businesses were unable to determine either what to produce or what to order during the pandemic as there was no clear timeline for when it would end.

As Biden took office, vaccines became available, and things started returning to normal. Economists who had served in both Democrat and Republican administrations saw the problem – demand was unnaturally high, and supply was unnaturally low. They warned Biden and his Democrat allies that increased government spending would juice demand driving inflation. The Biden administration ignored the advice, denied the existence and severity of any problem, and spent with the abandon of drunken sailors.


In March of 2021 Biden and the Democrats unilaterally and unnecessarily passed their $1.9 trillion spending bill (ironically called the American Rescue Plan) at a time when most Americas were already flush with cash. That released the inflation Kraken. To make matters worse, it was followed by a $1.1 trillion infrastructure bill, a climate change bill with $437 billion in spending (absurdly called the Inflation Reduction Act) and a $400 billion student loan write off. Not surprisingly, inflation surged and continues at levels not seen in 40 years.
That explains things quite well. And I’m flabbergasted that the Democrats insisted on doing what they did despite ample warmings that predicted this outcome.

This “green energy” extremism and nonsense is also throwing even more coals on the fire. Potato and the congregational Democrats created this mess and even today, they are pushing to spend even more.

Additionally, Trump was pushing to override Fauci and the Democrats to reopen the economy much earlier and the Democrats did every thing they could to delay that reopening and relentlessly went after Trump and criticized him for doing so. That’s another thing that exasperated the pain we’re experiencing today even more. In fact, in many places Democrats are still dragging their heels.

Democrat policies and actions have been totally irresponsible and they created this mess and the pain being experienced by citizens of this country and to a large extend around the world as well.
 
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m.knox

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Aug 20, 2003
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That explains things quite well. And I’m flabbergasted that the Democrats insisted on doing what they did despite ample warmings that predicted this outcome.

This “green energy” extremism and nonsense is also throwing even more coals on the fire. Potato and the congregational Democrats created this mess and even today, they are pushing to spend even more.

Additionally, Trump was pushing to override Fauci and the Democrats to reopen the economy much earlier and the Democrats did every thing they could to delay that reopening and relentlessly went after Trump and criticized him for doing so. That’s another thing that exasperated the pain we’re experiencing today even more. In fact, in many places Democrats are still dragging their heels.

Democrat policies and actions have been totally irresponsible and they created this mess and the pain being experienced by citizens of this country and to a large extend around the world as well.

And the reason democrats did everything in their power to screw things up for the American people?? #MUSTGETTRUMP....

Who would create severe pain for the American people simply to get one person. Totally sick.
 
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bison13

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Dec 22, 2007
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There’s two easy steps to get the economy back where it needs to be, stop government spending and start drilling again. It really is that easy.
 
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