Our inflation is largely caused by too much money chasing too few goods. This was created by the Federal Governments spending habits, spending trillions of dollars on “Rescue Plans” that were not necessary, printing money to pay for them. It is common sense to know that when such a large influx of money is injected into a recovering economy with supply chain issues, disastrous inflation will be the result.
Our hero was Joe Manchin. When Biden and the Democrats wanted to spend trillions more on the so called “Build Back Better” plan using reconciliation (requiring only 50% plus one votes for passage), Joe sensibly refused to go along, citing further inflationary fears. For once, a Democrat that seemed to understand that spending money you do not have is a disastrous proposition.
I wake up this morning, finding out that my faith in Joe Manchin has now been forsaken! It is reported that Chuck Schumer finally convinced Joe to support the paired down version of the “Build Back Better” plan, which not only will inject $350+ billion dollars into the already overheated economy. The icing on the cake is that it will supposedly be paid for by massive tax increases on big business and high-income earners, supposedly to protect the middle class from any pain from this spending and taxing. If you believe that, I have a bridge in Brooklyn I would like to sell you!
$369 billion dollars will be set aside for supporting the “New Green Deal”, with subsidies for those that want to buy or produce electric cars, windmill and solar farm subsidies, and $64 billion for rescuing the Obamacare project that is currently on life support. Supposedly the rest of the money being spent somehow will be targeted to “reducing the deficit”? How stupid do these Democrats think we are?
If that were not enough, these same politicians just passed a $280 billion “Chip Deal”. They are calling it the “CHIPS AND SCIENCE ACT OF 2022”, and it is in response to China’s increasing dominance in the chip making industry, which is critical to our overall economy as well as a clear and present threat to our national security, as our armed forces cannot operate unless they have unfettered access to microchips that are critical to equipment and weapons operations.
That almost makes sense, but the free market is already addressing this challenge, without government money or the strings attached to that money, which brings us to the big question about why this expense is actually needed! Most Republicans and some Democrats actually have come out against this bill for those very reasons, but to no avail.
So here we are, in an environment where the Fed is shrinking money supply with big increase in interest rates to fight inflation. Congress, with the approval of the President, is actually going in the opposite direction with over $700 billion in unneeded spending, thus negating the effects of the Feds war on the very inflation that is negatively affecting all of our lives. It is amazing that our politicians, people that have never had real jobs, have no idea how our economy works! Let’s vote these people out before they take us all down!