so bad how expensive thing are and chat libs will tell you its someone else's fault lol
Grocery prices increase….
- Thread starter Eastmandawg
- Start date
There is some truth to the fact that the pandemic led to an element of global inflation, as the demand for goods and services outstripped supply, with workers and manufacturing processes slow to re-open. However, the Biden administration specifically threw gasonline on a containable fire, by doing the following:
1) Inexplicably passing a second $1 trillion+ stimulus ALONG STRICT PARTY LINES WITHOUT ONE REPUBLICAN VOTE, in 2021:
Never let a good crisis go to waste, right? Trump got his stimulus. I want mine! By definition, this is highly inflationary. Effectively printing money and handing it to folks. Indefensible given the fact that at the time, the Pandemic was clearly almost over from an economic standpoint. The economy was humming and folks' savings accounts were at all time highs. Things were re-opening again. Vaccines available. At an early age we all asked the quesiton - why can't we just print money and give it to people? Then everyone would be rich and we would have no problems, right? The answer, as it has been proven through history with countries time and time again - inflation. The first stimulus was understandable. Everything shut down. Lack of visibility on exactly what the pandemic would be, etc, etc. It is why it passed unanimously. The second one has had a direct impact on what we are dealing with now. The Chips act, "inflation reduction act?" Also - by definition inflationary, with dollars being infused into the economy, increasing demand without a corresponding increase in supply. Along party lines. Econ 101. Biden and the democrats should be solely blamed for this.
2) The ridiculous shutdowns of businesses and schools into 2021, specifically in blue states artificially restricted the supply of both labor and goods (manufacturing). The push for these shutdowns came exclusively from the democrats and the Biden administration, with red state governors being villified for pushing to be open.
Econ 101. You restrict supply, prices go up. Vaccines were available. We knew that children were not at risk. But we indefensibly kept businesses and schools closed, and described those who advocated the opposite as murderers. This continued well into 2021. Furthermore, we created ridiculous quarantine and contract tracing rules that put huge swaths of workers out of commission for weeks at a time. Basically if someone had Covid or maybe even didn't have Covid but said they did, they would still get paid and all of their co-workers would be out for 21 days as well. What did this do to supply of labor? Biden and the democrats should be solely blamed for this.
3) The United States monetary and fiscal policy is the #1 driver of global economic conditions. In other words, if the US is experiencing a certain financial condition, generally the rest of the world follows, with our currency and treasury yields being the bedrock of the global economy.
So when Biden and democrats try and defend inflation with the "we are doing better than every other country," just know that the dynamics I mentioned in #1 and #2 above, along with our monetary policy, inflicted inflation on the rest of the world, amplified by their own (Europe / China) prolonged shutdown policies.
Biden and the democrats should be blamed for not all, but a lot of the inflationary issues we've had.
Good synopsis. The first wave of inflation was 100% the result of COVID. Supply chain shortages, pent up demand, people flush with stimmies, and work from home all caused market distortions that led to a big spike in inflation. Biden should not get blamed for this. The problem is that he doubled down and did an unnecessary additional round of stimulus, plus the ironically named “Inflation Reduction Act”, student loan payoffs, and numerous other stimulus measures that kept inflation high well beyond the COVID shock.
Biden certainly didn't help himself by declaring war on the oil industry day 1.....shat took off the first month.
Also, him "jonesing" for the minimum wage to increase really hurt. It was just passed along to the consumer and there were some businesses that had to eventually shut down because of the payroll/wage increase.
Fair post though, but he certainly has a lot of blame for it all.
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Will take it a step further. It isn't just oil companies, Biden is incredibly hostile to corporations of all kinds, with the possible exception of Big Tech. Regulations galore. His admin blocks every potential high profile M&A deal, which usually make sense specifically because it means efficiency, which is de-flationary by definition. And his rhetoric about "greedy" corporations, etc. etc. Picketing alongside big labor is something no President has ever done. You think labor strikes are inflationary or de-flationary. "i'm the most pro union President in History!!!!" His constant focus on optics has done nothing but feed inflation.
the other issue with the stock market is that it is completely dominated by big Tech......far and away the winners in this higher inflation environment. The Dow and Nasdaq being at all time highs isn't representative of the health of US businesses in general. Smaller businesses have gotten hammered. This is reflected somewhat in the Russell 2000, but even that doesn't really tell the story, as they are still large public companies.
That's great that NVIDIA is up 500%. That does nothing for the local site contractor, drywall guy, painter, real estate agent, mortgage broker, small restaurant owner, etc. It is pretty bloody in a lot of sectors. In 2019 it seemed we were humming across all sectors.
Yeah groceries just show up on the shelves magically. Transportation has no effect.
