This week, the stock market took a turn into bear territory on the heels of yet another brutal monthly inflation report. With the Federal Reserve considering larger rate hikes in order to tamp down record inflation, the possibility of a near-term recession now looms quite large, despite the feeble protestations of Treasury Secretary Janet Yellen. As former Clinton Treasury Secretary Larry Summers -- the man who predicted President Joe Biden's inflation -- stated, "I think when inflation is as high as it is right now, and unemployment is as low as it is right now, it's almost always been followed, within two years, by recession."
All of this was perfectly predictable. Firehosing money into an already-hot economy was a recipe for inflation -- and yet that was precisely the policy pursued by the Federal Reserve and the Biden White House. According to The Wall Street Journal, the Biden White House and the Fed thought that the post-COVID-19 period would follow the 2007-2009 pattern: "weak demand, slow growth, long periods of high unemployment and too-low inflation." This was incontestably preposterous. The 2020 economic crash was not the result of systemic flaws in the economy like the 2007-2009 subprime mortgage crisis; it was the result instead of an artificially induced economic coma, supported by an unprecedented infusion of government cash, preceded by a historic economic boom.This meant that when vaccines became available, when Americans headed back to work, when children went back to school, we should have been poised for an explosion in demand. To instead predict weak demand, and to build an extraordinary framework of continuing fiscal and economic stimulus on that basis, was an act of either total insanity, epic stupidity or purposeful malice. Perhaps it was a combination of all three. As the Journal observed, "many Democrats saw their control of the White House and Congress as a rare opportunity to shift Washington's priorities away from tax cuts favored by Republicans and toward expensive new social programs." Or, as Biden himself put it this week, "I don't want to hear any more of these lies about reckless spending. We're changing people's lives!"
They sure are. It turns out that "experts" in the back room constructing a supposedly better world rarely consider the possibility of unpredicted side effects. They are so busy building glass castles in their minds that they neglect the realities of human behavior. The result is generally that those the "experts" seek most to help are actually those harmed the most.
But the Biden White House refuses to change course. Instead, they insist that the American people are too foolish to understand just how good they have it; that the answer is more government spending; that the Federal Reserve, whose loose monetary policy prompted the current price spiral, will magically draw the proper balance between rising interest rates and low unemployment.
The real answer to America's current economic woes is simple, and the same as it ever was: Leave Americans alone. Stop pumping money. Stop subsidizing boondoggle projects directed at bolstering political allies. And stop pretending that our supposed intellectual superiors have the ability to predict, control and boost an economy comprised of 330 million citizens, all of whom are better qualified to make decisions for themselves than an incompetent and incoherent president and his unjustifiably arrogant lackeys.
Ben Shapiro, 38, is a graduate of UCLA and Harvard Law School, host of "The Ben Shapiro Show," and Editor-in-Chief of DailyWire.com. He is a three-time New York Times bestselling author; his latest book is "The Authoritarian Moment: How The Left Weaponized America's Institutions Against Dissent." To find out more about Ben Shapiro and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.
COPYRIGHT 2022 CREATORS.COM.
12 comments:
The reason the election was stolen and given to Slo Joe is he is the only person dumb enough to take the job knowing someone else is giving him orders. The little voice in his ear is trying to make the U.S. a third world country. Most of the time Joe does not even know where he is. Gets lost going to the bathroom. He does not know he will be blamed for this fubar.
It will get worse.
10:46
Agree and Obama is on record saying he would act to control the WH, which he now does through Susan Rice.
Shapiro overlooks Biden's war on fossil fuels as an important driver of inflation and supply chain disruption, why did he neglect this?
Time for a run on foil, 10:46. If your old, it’s tinfoil and if it you are not old then it’s aluminum. For you, any foil will do.
Stop pumping money? Have you ever seen what goes into a freaking appropriation bill? It’s nothing but a bunch money laundering back to legislative districts.
Economy ??? Every thing the man has touched has turned into a disaster.
Economist Thomas Piketty predicted this in 2020 that this would happen as result of the administration’s mishandling of Covid. Covefe….
11:57….Go crawl back under your rock. Pretty damn clear now with the Democratic Party is all about.
When it’s everyone’s money, it’s no one’s money. Trump and Biden pumped too much money into the economy.
It’s pretty clear what the democrats intend to do about Joe. Absolutely nothing! They know they are going to get their asses kicked come November. You can take it to the bank. They want the republicans to impeach Joe Biden. They know their constituents would crucify them so they can blame republicans when they send him packing. Then they can keep the same shit going with Kamala for the next two years before the country goes absolutely bat shit crazy.
I so wish people who write on the economy would actually have some knowledge of economics.
Our economic woes seldom manifest quickly and come from financial decisions make over several years.
This time, while the efforts to keep more Americans from being financially ruined in a pandemic contributed, it was the tariffs, the pandemic, and Ukraine than brought us to where we are.
That pundits still think the stock market is a barometer is inexplicable. It's been so corrupted in deregulation as to be right up there with gambling. Even a prospectus has no longer any penalties for " inaccuracies", that which was once illegal business practices are now legal including those that caused the disaster of 2008.
You want a better economy? Revisit the laws and regulations and business ethics governing business that existed when it business was strong and " the customer was always right"!
And, really people, what is it about " too big to fail" ( aka monopolies or near monopolies) that after centuries of economics you still can't grasp?
There is plenty of blame to go around.
"Disaster"? Watch John Forbes Kerry speaking to the WEF (or CFR)...."the Biden administration supports the Great Reset...unfortunately democratic governments cannot deliver the Great Reset (as nobody would vote for this), but it will happen (it will be imposed from above by elites) and much faster and with much more intensity than most could imagine". "Disaster"?. Depends on one's perspective. Biden's doing a fantastic job in his role, "solve", prior to "coagula" ("build BACK better"). Solve et Coagula! The Great Work!
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