Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI), told Breitbart News on Sunday that the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money.
Government borrowing and spending — marketed as economic “stimulus” by its proponents — combines with growing government debt and expansion of the money supply to drive inflation, Lachman explained.
“The real reason that one should be worried about inflation is that there’s far too much stimulus in this economy,” he remarked. “We’ve got the largest peacetime budget stimulus that this country has ever known. We talk about something like 12-13 percent of GDP, which is a massive budget stimulus by any reckoning.”
Higher Inflation Is Here to Stay for Years, Economists Forecast
Strong economic rebound and lingering pandemic disruptions fuel inflation forecasts above 2% through 2023, survey finds
— jeroen blokland (@jsblokland) July 13, 2021
It may not be the stagflation of the 70s yet, but we’re back to the inflation highs of 2008
The only people in the country surprised by the Bureau of Labor Statistics’s latest numbers all just happen to be those responsible for our accelerating inflation problem. After years of near-zero interest rates combined with the federal government’s $6 trillion spending bonanza, inflation has skyrocketed to its highest point since the Great Recession in 2008. From June of last year to this one, inflation has risen an extremely worrisome 5.4%.
The inflation doves relying on the Fed to fund their agenda with “free” debt will cry, yes, but the inflation is only bad because of a handful of industries! True, the sky-high price increases for gas (45.1%) and used cars (45.2%) are far greater than other categories delineated by the BLS, and it’s a great thing that transportation only comprises a plurality of the budgets of us peasants. But even removing these items with the excuse of “volatility” paints a dire picture.