"Federal Reserve Chairman Jerome Powell says that economic pain will be inevitable in the Federal Reserve ’s fight against inflation. As he put it, "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses."
"Powell was not joking. Consumers are being squeezed hard by the highest inflation rates in 40 years. Over the past year, adjusted for inflation, real hourly wages are down 3% . And because of a decline in hours worked as the economy slows, real weekly earnings are down even more, 3.8%.
President Joe Biden and the Democratic Party say that they are the party of the working man and woman. Really?
"The data say that Democrats want to put the typical household in the poor house. Democrats are responsible for the worst inflation outlook in four decades. The Federal Reserve is not the bad actor on inflation. Powell, and the other members of the Federal Open Market Committee, which sets monetary policy, are just trying to clean up Biden’s mess. Biden embraced modern monetary theory, believing that massive deficits don’t matter. What a joke. Now, he scratches at the fleas of that discredited theory.
"From 2008 until the massive deficit spending of the Biden administration, short-term interest rates were fixed near zero; yet inflation remained quiescent, averaging about 2% from 2009 to 2019. In 2020, however, federal spending surged. The first cause was then-President Donald Trump's failure to contain trend spending growth and his spending response against COVID-19. The second cause was Biden taking office and the Democratic Party dropping money on the economy. Under the Democrats, excess federal spending surged by 18% of GDP, or $4 trillion. Deficit spending does matter .". . .
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