BIDENS RECKLESS SPENDING IS DESTROYING AMERICA


Photo by Mike Lawrence

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair!”

Sam Ewing

Introduction

Stagflation is a word that was coined in the 1970’s by combining the two words stagnation and inflation. It describes an economy which is slowing down while at the same time experiencing rising prices and rising unemployment.

Inflation Exploding While Growth Is Slowing

Under the Biden administration, the role of government in the economy has undergone its biggest shift since Franklin Roosevelts “New Deal” in the 1930’s. Rather than fear of debt and inflation, the policy makers are flooding the economy with dollars and spending programs.

In May, the Producer Price Index soared 10.8 percent. In June, the Consumer Price Index was up 9.1 percent to a 40 year high. Groceries were up 12 percent and gasoline was up 60 percent from a year ago.

Welcome To The Recession

When an economy experiences two consecutive quarters of slowing Gross Domestic Product (GDP), the economy is officially in a recession.

The first quarter of 2022 saw a 1.6 percent shrinkage of GDP. Estimates are that on July 28, the second quarter report of GDP will show shrinkage of 2.2 percent.

Inflation Outpacing Wage Increases

Wages are not even vaguely keeping pace with rising prices in gas, food and rent.

The average family, with both parents working, has seen a $6,800 pay cut. Wages adjusted for inflation are near historic lows, crushing the middle class.

In May, the University of Michigan Survey of Consumer Sentiment sank to its lowest level since the numbers were first reported in the 1970’s. Americans are not fooled by the empty rhetoric of the Biden regime.

How Biden Created This Crisis

Even with one-party Democratic control of Congress, Biden has found a way to secretly spend hundreds of billions of dollars without Congressional approval.

Biden refused to spend the $1.4 billion that Congress approved to build a border wall and combat illegal immigration. Biden did, however, throught executive actions, spend $532 billion on actions that Congress never authorized.

In addition to the $40 billion authorized by Congress to assist Ukraine in the war with Russia, Biden announced another $2 billion military aid package, despite U.S. officials admitting that they do not know where the weapons are going or how effectively they are being used.

Conclusion

Billionaire entrepreneur Elon Musk said, “The obvious reason for inflation is the government printed a zillion dollars.”

According to Ron Surz, CEO of Target Data Solutions, “Mountains of money cause inflation. The federal governments all-in spending was approaching $13 trillion as of mid-2021. That is more than the U.S. spent in its 13 most expensive wars combined.”

Photo by Mike Lawrence

%d bloggers like this: