(AmericanProsperity.com) – The Federal Reserve Bank of San Francisco’s recent analysis on inflation plainly states that President Joe Biden’s stimulus package had a negative impact despite claims from the White House to the contrary. The Biden administration has long held that the American Rescue Plan was necessary spending that had nothing to do with inflation.
The Numbers Speak for Themselves
The Fed reports that the Biden administration is responsible for three full percentage points’ worth of inflation. The president’s $2 trillion stimulus package may have had good intentions, but even then, there were concerns about what a sudden and often unnecessary influx of cash would do to the Consumer Price Index (CPI), a gauge used by economists to predict growth.
The index grew by 4% last year, an explosive number that reflects the money spent on all goods and services, minus energy and food. The US index is much higher than other developed nations, outpacing Canada, the United Kingdom, and Germany by 1.5 to 3%. While President Biden says the current inflation explosion is due to supply chain issues, the Fed analysis suggests otherwise.
Is Biden Responsible?
Most economists would point to a number of reasons for inflation. The US economy is a massive and complex system. For the White House to claim they had no part in rising prices seems naive. The Washington Post expressed concerns that the American Rescue Plan handed wads of cash to families who weren’t struggling, driving up the costs of consumable goods. While pandemic quarantines account for some increases, $800 billion in non-taxable, unearned income injected into the economy certainly can’t be ruled out the way Biden would suggest.
The Organization for Economic Co-operation and Development (OECD) says inflation in the United States now surpasses the rest of the developed world, noting that while the pandemic definitely caused distortions for everyone, the US numbers are astonishingly high.
More of the Same
According to the Washington Free Beacon, Democrats plan to get a handle on inflation… by spending more money. The nearly $2 trillion Build Back Better plan will pump money and jobs into an already bustling economy. The plan will supposedly create good, stable jobs with high wages at a time when the labor market struggles to fill entry-level and service jobs.
The Left would like to continue with their efforts to throw money at the problem, calling underinvestment in America’s infrastructure the reason for inflation. With Democrats in control of Congressional committees, it’s likely the tax-and-spend mantra will continue.
~Here’s to Your Prosperity!
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