Where is all this inflation coming from?
It’s actually not a very complex answer. Democrats have always been liberal in their approach to social issues. From The New Deal, to Social Security, to the War on Poverty. All of these look good on paper, but when put to a practical test they fail the practical economic test. Why? Simply because people don’t behave in the manner Democrats wish them to. A simple study of economics will always show that if you pay a someone who is not working, they will continue to not work for as long as that payment keeps coming. This kind of governance, simply put, is plain short-sightedness. A failure to look beyond the immediate benefits of a plan to the long term consequences of what it may cause down the road. In the past Republicans and Democrats were at odds on these topics but worked together to hammer out solutions that would mitigate some of that damage.
Fast forward to today. Things didn’t just go south with the election of Joe Biden. Democrats have been in a downward spiral for about 30 years now. It started with Bill Clinton. When Bill wanted to remove the guardrails from banking so people with poor credit could get mortgages, Republicans warned that this would cause the number of mortgage defaults to skyrocket, simply because people with poor credit are the most likely to default on a mortgage. Normally there would have been some kind of negotiation and a mutual resolution. However, instead of this, Bill pushed a democrat majority in Congress to ignore these warnings and do it anyway. Of course the immediate benefit was poor people getting mortgages, and for a time it seemed to be raining money in the housing market. But as was predicted, that bubble eventually burst when defaults went through the roof. George W. Bush was forced to bail out the banks and the only way to come up with that much money that quick was to print about a third of it.
When Obama was in office and he had a filibuster-proof majority in Congress, he rammed through the most sweeping piece of socialist legislation since The New Deal. The Affordable Care Act. Republicans complained that it would cause taxes to go up, but Obama insisted that it wouldn’t raise taxes. And true to his word, the tax code wasn’t altered to account for the 2.8 Trillion Dollar deficit this caused. So where did the money to cover the shortfall come from? They printed it. Not all at once, but if one only looks at the amount of money year by year, starting in 2010 the amount in circulation began to go up faster than any point in history. The immediate result of this was, for the first time in US history, our nation’s credit rating was lowered. As of now the amount of money in circulation has more than doubled since 2010, and is on track to double again by 2028 thanks to Biden’s huge spending spree.
Inflation is not “transitory” as Joe Biden likes to say, and it’s not a result of war in Eastern Europe. It is a product of one thing and one thing only. Supply and demand. If the amount of money is greater than the demand for it. It will be worth less. Couple that with the knowledge that only the federal government can authorize an increase of the amount of money in circulation, and it’s pretty easy to see where to lay the blame.
Democrats must be brought to heel, and this myopic unsustainable spending has to stop. If it doesn’t a day will come when the rest of the world no longer has any confidence in the US Dollar and it will become virtually worthless.