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Democrats’ Inflation Hurricane

Posted on Wednesday, October 13, 2021
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by AMAC, Robert B. Charles
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25 Comments
hyperinflation

Brace for heavy weather. Biden and Democrats are driving inflation to hurricane levels. In 2018, the annual inflation rate was 1.9 percent. In 2021, the annual inflation rate is 5.3 percent. It is about to rip shingles off personal budgets, especially for those on fixed incomes, with credit card, mortgage, or variable interest debt. Why? See, e.g., Current US Inflation Rates: 2000-2021.

Three reasons explain why inflation is about to get worse, not better.

First, Democrats’ excessive federal spending is unaffordable. Driven by vote-chasing, irresponsible fiscal stewardship, and one-party control over House, Senate, and White House, Democrat spending is effectively unchecked. Trillions more are coming if Democrats get their way. Beyond the current fracas over how to twist “reconciliation” to get votes needed down to 51, intimidate the parliamentarian, jam two bills totaling $4.7 trillion through both chambers, Democrats are likely to continue spending. See, e.g., $3.5 Trillion Is a Phony Number.

Above and beyond this wild, supplemental, “non-regular order” spending in the fiscal year 2022, more can be expected. While passage of either the $1.2 trillion “infrastructure” bill or $3.5 trillion “human infrastructure” (or “Build Back Better”) bill – or both – will quicken inflation, more can be expected.

No one is talking about this, but after December 3, a continuing resolution runs out, and Congress will likely pass an “omnibus bill,” capturing in one bill the unfinished and delayed “regular order” process for funding programs until October 2022.

Into that “omnibus bill,” or emergency legislation passed at the same time, Democrats may push other spending. Specifically, as the “delta variant” of COVID continues, and Democrat mandates shutter businesses, an excuse may be made for more COVID relief spending.

In addition, on December 31, many current provisions end, including the payroll tax deferral, employee retention credit, enhanced child tax credit, tax extenders, emergency disaster loans, and various medical and fiscal checks, which could be suspended by Democrats. All of this produces increased spending.

Second, Democrats’ anti-energy independence hurts. Energy costs are soaring – because Biden and the Democrats shut down, penalized, and disincentivized US energy independence while proving unable to lower the international cost of oil through diplomacy. See, e.g., OPEC+ Predictably Rejects Biden Plea For More Oil Production.

The result has been both predictable and devastating. Oil is now at a near-record high, impairing Americans at the gas pump and suggesting oil shortages and sky-high fuel costs for winter heat. See, e.g., Oil hits $80 per barrel a seven year high; Biden Caught Flatfooted By Skyrocketing Oil Prices.

As the US energy sector shrinks, consolidates, tries to survive, Biden and Democrats pursue the wishful idea that multi-decade build-out costs for wind, sun, and other renewable power generation will magically compensate for non-production, create jobs as fast as destroying them, and keep costs low. That is worse than miscalculation – it is pure, unadulterated fiction.

The truth is that Biden and Democrats are destroying the US energy sector, chasing energy unicorns as they kill horsepower that runs the US economy, US cars, trucks, buses, trains, planes, and production – not to mention economically keeping Americans warm in cold winter months. The result is a double hit that will raise consumer costs. They will wipe out a sector’s employment while causing consumers to pay more for what that sector used to produce – and from foreign sources. See, e.g., About Joe’s Energy Jobs; Gas Prices Surge as Biden Targets U.S. Oil Production; Biden’s assault on oil and gas industry threatens jobs, energy security.

Third, Democrats’ anti-business policies raise prices. As the Biden White House and Democrats push hard-to-meet mandates on businesses nationwide, provide cash and non-cash benefits rewarding non-work, and excuse increased dependence on the government, the effect is business cuts and closures.

Business cuts and closures come with obvious effects, including lower employment (already starting to show up in the numbers), lower consumption, higher costs for what we are producing less of, supply chain disruptions within and across economic sectors, increased foreign dependence (since we have less of what would be produced domestically), and reduced consumer confidence. The big effect is less work and income trying to buy less available goods and services at higher prices.

Even mainstream media are being forced to report that the economy is headed lower, prices higher, and rosy Democrat projections are simply not bearing up. See, e.g., Employers add a dismal 194,000 jobs in September, unemployment rate at 4.8%; Buckle Up: 3 Reasons Why Inflation Is Rising.

Where does all this excess spending, anti-energy independence (affecting all sectors), and anti-business sentiment lead? Until fiscal restraint returns, program cuts match revenues, mandates come off, taxes come down, and free enterprise, job creation, and investment are respected – no place good.

In short, brace for heavy weather. Biden and Democrats are driving inflation to hurricane levels, spending like a wind machine, toppling pillars of the US energy sector, hampering the production of goods and services, creating an imbalance between supply and demand, sure to whip up the winds of inflation.

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George Kamburoff
George Kamburoff
2 years ago

The comments here are like those from Glavset, the name of the Russian hackers. I have many of their names.

George Kamburoff
George Kamburoff
2 years ago

This is nonsense.
Why does this group take the side of conservatives who want to deny healthcare to you?
And why would any of you vote for them?

Mario Capparuccini
Mario Capparuccini
2 years ago

In short, welcome to hell. Could we expect anything different from the party of Satan? Abortion, Critical Race Theory, policies that promote sexual perversion, euthanasia, and failure to prosecute murderers and other criminals are all from hell. The Democrats have given us the gift of bringing us to hell while we are still alive. Steadfast prayer to the living Triune God is the solution.

Karen
Karen
2 years ago

I’m on SS and cannot afford this unthinkable rise in everything. Do the right thing Biden and have a little consideration for us poor people. It may even save you presidency.

Roger
Roger
2 years ago

Hang onto your chopsticks! Hurricane Xi JinBiden is about to HIT with NINJA-Force!

Darwin Benedict
Darwin Benedict
2 years ago

Our only hope to all this is to see Trump back in office, but don’t know how that would take place since everything in Washington is controlled by the Democrats.

Robert Goidel
Robert Goidel
2 years ago

Inflation is the Federal Government tax. If any of the readers remember the 1970’s, it was not fun at all. Then when Ronald Reagan was elected, everything, changed for the better. I remember working for an importer. The wages I received initially was okay, then during the 1970’s, my earning were dwindled away on just living expenses. It was very hard to get any kind of raise and finally after 10 years of working for the importer, I left to start my own business.

Hal
Hal
2 years ago

Inflation is a Federal Government tax … the effect of which can be denied by our mealy mouthed DemocRat political leaders (including those behind the scene working the strings). If you think that this is not true, you better do some research as to how it works. The government in power will try to convince you that the Government is a “victim” of inflation too. But that is a smoke screen,… Government spending beyond tax receipts is a disguised way of raising taxes and not being blamed for it.

Dave Williams
Dave Williams
2 years ago

For those who are concerned about the depletion of Social Security, Medicare and other federal programs, what effect do you think will there be from millions of uneducated invading criminals coming across the southern border?
I noticed that Biden suggested giving each of them approximately $86,000 annually in the ‘reconciliation’ bill.
With government expenditures of trillions of dollars, what will be left to fund Social Security?
Also, one might note that each trillion the government spends costs the average taxpayer approximately $8500. Therefore the current debt evenly divided up is approximately a quarter million dollars per taxpayer. And likewise, the 3.5 trillion ($3,500,000,000,000.00) they are proposing in the reconciliation bill would be another thirty thousand dollars of debt per taxpayer.
When the average family income is about $80k and each family’s portion of the federal debt is approximately $800,000 the federal debt is approaching insanity.

PaulE
PaulE
2 years ago

RBC,

The Democrats laid out exactly what they planned to do in 2020 should they win control of D.C. Their 2020 Democrat policy platform was pretty granular in detail and covered all the areas of the economy and social engineering they planned to enact. The time to prepare and plan for such a massive onslaught to the economy and societal norms in general was last year. With any such plan being ready to be enacted should the worst case happen. Well the worst case has happened and the Democrats are doing exactly what they laid out as their policies with predictable results.

The last 8 months are simply the warm up to what is coming down the road. We will be quickly catching up to mirroring what western Europe looks like in terms of energy, food, housing and taxation costs to the average consumer. If you want to see where we are heading, read or watch the British, French or German news concerning prices, regulatory and tax issues and the overall jobs situation.

Yes, inflation has risen and will continue to rise as a consequence of their existing changes already put in place. Inflation will be further stoked by the additional series of taxes and job killing regulations incorporated in both the so-called bi-partisan infrastructure bill and their standalone reconciliation bill. The latter locking us into a European social welfare model that will permanently retard economic growth going forward, which I doubt most Americans fully understand at this point. The economic and societal ripple effect from these two pieces of legislation will permanently alter the standard of living for the vast majority of Americans and NOT in a good way. So yes, Americans should indeed brace themselves for what will become the “new normal” coming down the road.

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