How Biden torched the Trump recovery

m.knox

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#BIDENCOOLEREFFECT

https://thehill.com/opinion/finance/590451-how-biden-torched-the-trump-recovery

The White House celebrated its first-year economic achievements by tweeting: “When @POTUS and @VP were sworn in, our economy was on the brink of collapse.”

That is a flat-out lie.

As Biden first set foot in the Oval Office a year ago, real GDP was growing at 6.3 percent, inflation was 1.4 percent, the price of gasoline was $2.39 a gallon and Michigan’s consumer sentiment index stood at 79. Today, real growth has slowed to just over 2 percent, inflation is at 7 percent, gas is up to $3.31 a gallon and the Michigan Index is 68.8.

In addition, real wages dropped 2.4 percent over the past year, with inflation overwhelming pay hikes after several years of gains under President Trump.

In just one year, Biden has managed to torch an economy that was recovering robustly when he took office. One bad decision after another, compounded, to be sure, by certain events beyond his control, have scuttled the turnaround that was well underway the day he became president.


His major mistakes? Depressing oilfield investment, reversing U.S. oil output and leaving us at the mercy of OPEC and higher gasoline prices; stoking out-of-control federal spending with the Democrat-only American Rescue Plan (ARP), sidelining millions of workers and fueling an ongoing labor shortage; delivering mask mandates that have exacerbated that worker shortage; ignoring the resulting inflation until voters rebelled, demanding the Federal Reserve take what may be harsh measures to change course.

Those are just the high points.
 
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KnightWhoSaysNit

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Jul 19, 2010
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... demanding the Federal Reserve take what may be harsh measures to change course.

Those are just the high points.

The Federal Reserve "mandate" is a big one. First we have a government that wants to make everything look great through ballooning the stock market. But even investors know that the reason for this bubble is that it anticipates high inflation. Valuations don't increase 50% while people sit at home without there being super high inflation.

So voters rebel in the polling. What does Biden do? Charge the Fed with the problem. He can then blame the Fed.

I don't think there is anything Powell can do at this point without either hurting consumers or investors. He can make some token short term rate increases but that won't return the massive money supply increase back to the Federal Reserve. And if it did have a material effect, this would bring down the stock market.

Millions just retired thinking they now have adequate resources. But they're not factoring in a key issue: Future real returns on their investments are not going to be positive unless policies are rapidly reversed to stop what now appears to be 1970s style inflation.

The average Joe doesn't get it. Even some smart people on this board don't get it. Unless you are a Fed insider you have no idea how to place a valuation on stocks. This became a problem as soon as Powell abandoned his inflation mandate and started using the word "transitory." As a retiree I was horrified by this. Still am. No way to structure investments and no way to even construct a budget.
 
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Fayette_LION

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The Federal Reserve "mandate" is a big one. First we have a government that wants to make everything look great through ballooning the stock market. But even investors know that the reason for this bubble is that it anticipates high inflation. Valuations don't increase 50% while people sit at home without there being super high inflation.

So voters rebel in the polling. What does Biden do? Charge the Fed with the problem. He can then blame the Fed.

I don't think there is anything Powell can do at this point without either hurting consumers or investors. He can make some token short term rate increases but that won't return the massive money supply increase back to the Federal Reserve. And if it did have a material effect, this would bring down the stock market.

Millions just retired thinking they now have adequate resources. But they're not factoring in a key issue: Future real returns on their investments are not going to be positive unless policies are rapidly reversed to stop what now appears to be 1970s style inflation.

The average Joe doesn't get it. Even some smart people on this board don't get it. Unless you are a Fed insider you have no idea how to place a valuation on stocks. This became a problem as soon as Powell abandoned his inflation mandate and started using the word "transitory." As a retiree I was horrified by this. Still am. No way to structure investments and no way to even construct a budget.
For those of us living on a fixed income, inflation is taking a major bite out of our standard of living
 

KnightWhoSaysNit

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Jul 19, 2010
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For those of us living on a fixed income, inflation is taking a major bite out of our standard of living

That's right. The pension part of my future income is rapidly evaporating. What they essentially did is spend (possibly more than) a decade in future real economic growth.

One way to look at it is that your pension has been "taxed" to pay for the shut down of the economy and the wealth increase of those holding stocks. And as inflation spirals out of control that "tax" will become catastrophic to retirees.

People have no idea. The evidence is the massive increase in retirees during the pandemic. The only way out is to have some kind of easy way to increase productivity (i.e., a blockbuster invention of some type). But what this administration has been doing is the opposite. Killing energy is near the top of the list.
 
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PaoliLion

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Nov 2, 2003
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#BIDENCOOLEREFFECT

https://thehill.com/opinion/finance/590451-how-biden-torched-the-trump-recovery

The White House celebrated its first-year economic achievements by tweeting: “When @POTUS and @VP were sworn in, our economy was on the brink of collapse.”

That is a flat-out lie.

As Biden first set foot in the Oval Office a year ago, real GDP was growing at 6.3 percent, inflation was 1.4 percent, the price of gasoline was $2.39 a gallon and Michigan’s consumer sentiment index stood at 79. Today, real growth has slowed to just over 2 percent, inflation is at 7 percent, gas is up to $3.31 a gallon and the Michigan Index is 68.8.


In addition, real wages dropped 2.4 percent over the past year, with inflation overwhelming pay hikes after several years of gains under President Trump.

In just one year, Biden has managed to torch an economy that was recovering robustly when he took office. One bad decision after another, compounded, to be sure, by certain events beyond his control, have scuttled the turnaround that was well underway the day he became president.


His major mistakes? Depressing oilfield investment, reversing U.S. oil output and leaving us at the mercy of OPEC and higher gasoline prices; stoking out-of-control federal spending with the Democrat-only American Rescue Plan (ARP), sidelining millions of workers and fueling an ongoing labor shortage; delivering mask mandates that have exacerbated that worker shortage; ignoring the resulting inflation until voters rebelled, demanding the Federal Reserve take what may be harsh measures to change course.

Those are just the high points.

LOL - an opinion piece from a crackhead republican. Thanks for posting
 

KnightWhoSaysNit

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Jul 19, 2010
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Best GDP growth since the Reagan years. Fastest job growth, ever in one year.

I've tried to point out the flaws behind what you think is "good," but you refuse to be open-minded. A couple of data points that are not reconciled dynamically will lead to false conclusions. You seem to be either the prey of rhetoric that uses flawed statistics for political gain, or you are a political hack that doesn't care.
 
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m.knox

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Aug 20, 2003
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Best GDP growth since the Reagan years. Fastest job growth, ever in one year.

From the COVID shutdown. Are you really that desperate to think Biden actually did something other than increased crime, illegal immigration, a surge in Fentanyl coming across the border, congested ports, inflation....?
 
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