Newsline

National Security , Newsline

Damaging Democrat Inflation

Posted on Thursday, January 27, 2022
|
by AMAC, Robert B. Charles
|
18 Comments
Biden

As we get drawn into a Biden-Harris inflation vortex, a time of economic unpredictability, swiftly changing the value of our money, a few things are predictable. Inflation – what it is, where it comes from, how it affects life, how long it lasts, and what scars it leaves – are worth knowing.

First, inflation is not the end of the world but can markedly affect life. It does not appear from nowhere. Despite best efforts of economists to manipulate statistics, it does not follow a set schedule, like phases of the moon.

Inflation is a measurable increase in prices, sometimes suddenly, which promptly cuts purchasing power for dollars you earn, save, and spend.

Economists – who like to apply quantitative analysis, fancy models, and big words to simple phenomena – say inflation follows “business cycles.” That is not entirely true – because even “business cycles” are “much of a muchness,” to borrow from Shakespeare’s chuckling cynicism. 

Nothing wildly scientific is needed to understand core inflation or business cycles. Consumers want things; businesses make them, prices reflect how much and how many and how fast people want those things, whether there is competition, what the inputs (labor and capital) cost, delivery to market.

Yes, human behavior can be painfully complicated or quite simple. Growth occurs in an economy when people want things, businesses make them, and people gain from employment, earnings, more purchases, a better quality of life. That is capitalism at work; the less government, the better it works.

Yes, economies tend to follow basic patterns. People have dreams and wants; prices start low, the cost of borrowing to meet dreams and wants is low, then things heat up, inputs get scarce, prices rise. This dissuades people from buying, so an economy slows, maybe recession, prices fall, we begin again. Economists use jargon, quantify human behavior, infer cycles, but you get it. See, e.g., Business cycle.

All this is normal, just waves on the beach, coming and going. And built into those recurring waves of consumer and business activity are changes in price.

Generally, with more activity, more inflation happens – prices tend to rise if more people want a thing of limited quantity (“demand-pull”), or prices rise with input costs (labor and raw materials), but this is not the story’s end.

Core inflation – call this good inflation – reflects a surging market, rapid expansion, growth in output, tight labor market despite high participation.

But there is also another kind of inflation, bad inflation – a sudden rise in prices, cheapening of currency, plummeting of the dollar, breathtaking loss of purchasing power, driven by irresponsible fiscal policies, massive debt, overspending by the federal government, and no sense of matching production to spending. See, e.g., Rand Paul releases report on rising inflation: ‘It’s only going to get worse.’

That is what we are facing right now. The scary part is that total power in Democrats’ hands – White House, Senate, and House – has allowed a radical shift toward irresponsible fiscal policy, debt, and overspending.

To be clear, no level of increased taxes (which slows an economy, producing unemployment, lower revenues, more bankruptcies), or increased interest rates (often intended to slow good inflation), or any other instant tool can fix bad inflation overnight.

Once Democrats pushed this snowball over the top, and it began rolling, the consumer – especially those with limited resources – was in trouble. And that is where we are right now.

Today, we are seeing the biggest “bad inflation” surge in 40 years, a whopping seven percent in December, headed only higher.

This is a direct result of feckless, uninformed, “don’t give a care” federal spending – Democrats thinking they can buy votes with giveaways, COVID money, topping up unemployment benefits, mass socialist spending.

What is the real result? Your dollars – the ones you work hard for – are going to be worthless and less until fiscally responsible leaders are elected and take over the economy, those who believe in limited government, not more.

The coming tsunami of inflation will only taper when people are given freedom again – when those sitting on the sidelines are incentivized to rejoin the labor market, when COVID mandates vanish when the energy sector is restored, when public safety returns, when the federal debt is taken seriously when massive, crazy federal spending and concentration of power ends.

Only then will conditions return that allow consumers and producers, with a degree of flexibility, predictability, and less fear of government, to do what they do so well – grow, prosper, fulfill the “pursuit of happiness.”

In the end, this Democrat-driven inflation is a bad penny, sure to trigger loss of not only purchasing power but personal contentment, job, and income security, value in savings, and trust in the future. 

So, what is the answer? To get the inflation monster back in its cage, we need to demand fiscal responsibility elect those who believe in limited government, not run-a-muck spending. Federal debt needs to come down, socialist, discretionary, and unaffordable entitlement programs need to be reined in.

In short, the American people need to understand Democrat-driven inflation is counterproductive, amounts to a massive tax on the Middle Class, puts brakes on the private economy, and is not sustainable. The sooner we realize this, understanding the damage inflation does, the faster we can turn this around. 

Share this article:
Subscribe
Notify of
guest
18 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Max
Max
2 years ago

RBC: TOUCHE !!!

PaulE
PaulE
2 years ago

“So, what is the answer? To get the inflation monster back in its cage, we need to demand fiscal responsibility elect those who believe in limited government, not run-a-muck spending. Federal debt needs to come down, socialist, discretionary, and unaffordable entitlement programs need to be reined in.”

We have two sources that have flooded the economy with excess dollars and thus stoked inflation:

One is the Congress that doesn’t understand the concept of actual SPENDING CUTS. I mean actually reducing or eliminating spending on the third of the annual federal budget that serves no purpose other than maintaining the political pork system in this country. The majority of neither political party is serious about actually doing real cuts (only a handful of current members of Congress actually are) or they would adopt a zero-based budgeting model for the entire federal budget. We’ve gone from spending bills being the billions to spending bills being in the trillions, like there is no downside risk associated with this level of accelerated wasteful spending. Well inflation is one of those risks and it is going to be very hard and painful to wring it out of our economy.

Number two is the Federal Reserve System that has been operating in emergency mode since 2008, when they had to bail-out the economy from train wreck caused by the Democrat’s misuse of the CRA (Community Reinvestment Act) to force banks to make mortage loans to people with sub-standard credit and then all that debt to be monetized via the bond market. The Fed has since become the lender of last resort for virtually every single financial instrument except individual stocks and has given a green light to runaway spending by Congress by keeping long-term rates artificially low. The Treasury is literally printing money out of thin air when the normal Treasury auctions don’t provide sufficient revenue to keep the party going.

So higher rates of inflation are a natural by-product of these two sources. The fixes are straight-forward, but I doubt there is any real commitment currently in Washington to properly address the issue. I also kind of doubt a majority of the public would be up to the task of backing this effort long-term, as most of the public seems to desire quick and painless solutions that in this case don’t exist.

Broccoli Free Zone
Broccoli Free Zone
2 years ago

The national debt increased $2 trillion in 2021. THAT is the cause of the inflation monster busting down the door.
VAX mandates for truck drivers is another factor. Many thousands of drivers have stopped because of mandates AND the price of motor fuel. That partially explains the empty shelves and decomposing produce available at the stores. Let us go, Brandon.

Carol
Carol
2 years ago

There are so many people on the Government dole today that to cut back on spending, too many would scream and holler about losing their handouts! How many Americans will STOP talking government handouts to help REAL spending cuts take place? Not sure America has the courage to take this on until the country collapses. I pray I’m wrong!

Phillip Ridenour
Phillip Ridenour
2 years ago

Inflation is not the end of the world. Tell that to the people of the Weimar Republic who carted wheelbarrows of cash to the grocery store. Better yet, tell that to the people of Venezuela.

Dan
Dan
2 years ago

The right word is “run-amok” — not “run-a-muck.” Otherwise your articles are usually great.

Rik
Rik
2 years ago

What Communist Democrats hear is what Communist Democrats do! . . . No surprises here!

BlessdAmerican
BlessdAmerican
2 years ago

Inflation is almost entirely a result of government spending. Overspending to be exact. The natural business cycles never devalue our dollar like government overspending does. Inflation doesn’t even have to happen, it isn’t “inevitable” except for govt. spending.

Karen
Karen
2 years ago

All I can say at this point is, b4 that commie Biden got into the WH, I was spending around 50 to 65 bucks a week for food and other needs. Yesterday, I spent $96.00 for needs with no extra goodies. That sonofabitch has to go NOW!

Jake the snake
Jake the snake
2 years ago

The current inflation was 100% cuased by bidens EO’s in January 2021.

He cut off our domestic energy supply which turned on the inflation machine.

Want low inflation and high employment? Never vote democrat again

Mario Capparuccini
Mario Capparuccini
2 years ago

I thought Biden promised to not increase our taxes. Yet, his stupid policies have done just that, hurting those who can least afford the price increases. Why 40% of the polled population still thinks he is doing a good job is beyond me, unless the polls are as crooked as the election.

An older blonde women laughing in the kitchen with a grey haired man.
AMAC’s Medicare Advisory Service
The knowledge, guidance, and choices of coverage you’re looking for. The exceptional service you deserve.
The AMAC App on 3 different iPhone
Download the AMAC App
The AMAC App is the place to go for insightful news wherever you are and whenever you want.
Demonstration for stop the persecution Falun Gong in China. New York, USA - September 23, 2014:Stop the persecution of Falun Gong in China in 47 street and 1st Ave.
Ronald Reagan makes a dapper picture with a boutonniere in his lapel. The occasion was Reagan`s address before the Chicago Council on Foreign Relations on St. Patrick`s Day, March 17, 1980. At the time, the former movie actor and two-term California governor was running for the Republican Party nomination for president.
Usa and Venezuela Realistic Half Flags Together

Stay informed! Subscribe to our Daily Newsletter.

"*" indicates required fields

18
0
Would love your thoughts, please comment.x
()
x

Subscribe to AMAC Daily News and Games