Remember how adamantly Joe Biden’s pundits professed that skyrocketing inflation was only transitory? You know, transitory in that it won’t last long. Or, better yet, that inflation was a minor inconvenience for Americans. We have too much stuff, right? They were lying.
Joe Biden’s boast of transitory inflation has turned into anything but. In December, the Bureau of Labor Statistics reported another in the continuing spike in the Consumer Price Index (CPI). Inflation hit a point worse than at any period during the last 40 years.
Inflation is not transitory. It’s real. It’s pilfering money out of the pockets of hardworking Americans. What are even more disturbing are the expert reports concerning the future of this current four-decade record spike.
The prospects of inflation continuing are extremely troubling. Kentucky Senator Rand Paul just released a report detailing the unsettling effects this sharp rise in consumer prices is having on Americans.
Paul is the top Republican on the Senate Committee on Small Business and Entrepreneurship. The vocal Senator directly blames excessive COVID spending as the root cause. Continued wasteful excess government spending will only make the situation worse.
Paul’s report comes as liberal Democrats try to resurrect Joe Biden’s insane spend and tax legislation tabbed, “Build Back Better”. Thankfully, a handful of sensible moderates like West Virginia’s Joe Manchin see the error in another round of rampant government spending.
Build Back Better, more appropriately called “Build Back Broke” because of what it will do to middle-income Americans, is dead. Several acclaimed economists from across the country echo what Paul cautions. More government spending now is a horrible idea.
What these “big government spending sprees” trigger is a “hidden tax”. It affects low and middle-class Americans the most. The excessive inflation these welfare state spending bills cause, robs hardworking Americans. Many will be unable to feed their families.
One huge problem is that there seems to be no cure for the current inflation Biden policies have created. Kenneth Rogoff sat down for an interview with FOX New Business. Rogoff is a Harvard economist. He questions what steps the Federal Reserve will take going forward.
The chess Grandmaster stresses that, “it’s not so easy to raise interest rates to fight inflation when public and private data is high.” Rogoff hopes the Fed will take a conservative and commonsense approach to potential interest rate increases.
He fears any drastic, untested policy, could send the nation into a spiraling recession. A recent CBS News poll found that many Americans are very unhappy with the Biden-caused inflationary crisis. Nearly half said they were disappointed in Biden’s handling of the economy.
Another 40 percent of Americans said they were very nervous about inflation. Nearly 60 percent feel that Biden is not giving enough attention to the inflation crisis. Nearly two-thirds disapprove of how much focus the Biden administration is giving to rising consumer prices.
Some experts, including former Treasury Secretary Larry Summers, have offered dire warnings. In a recent interview, Summers strongly warned about what he perceives as extremely dangerous “higher entrenched inflation”.
He believes the immediate road ahead for the Fed is going to be dangerously challenging. The wrong tweak of the economy, a stopgap patch to battle the decades-high spike in inflation, could prove disastrous.
As the nation tries to crawl out from under the economic hardship caused by the COVID-19 pandemic, any wrong moves will trigger a recession. There are few examples for economists to draw experience. Poor fiscal policy decisions will have dire consequences.
Some warn a recession, in the midst of a pandemic, could ignite a catastrophic economic depression. Rand Paul believes the spiral started with the first $1.8 trillion CARES Act in March 2020. Since then, government spending has bled trillions of dollars into the U.S. economy.
It’s the reason Paul and other economic conservatives voted against the legislation. The hens are now coming home to roost. But it’s America’s core middle class who will pay the price. They’re paying every day as prices continue to soar.