National Economic Council director Brian Deese was chided for “demagoguing” in an interview last week by CNBC’s Joe Kernen. Kernen made the point that the government was going to be taking in record revenues and the administration should focus more on the expense side. Deese responded by saying that Joe Biden’s budget cut the deficit. This when an exasperated Kernen pointed out that deficit cuts were the result of scaling back the massive Covid spending and noted that spending on everything is increasing under Biden’s budget.
Deese countered that increased tax receipts because of an economic boom were also responsible for cutting the deficit. The numbers do not tell the entire story, however. The reason for the ‘boom’ is the lifting of restrictions and the economy starting to regain its footing after the lessening of the Covid restrictions. It was the government who imposed them, so it is disingenuous to say the economic gains are a result of Biden’s policies.
There is no economic boom. The exact opposite is occurring. Inflation is rising so fast that wages cannot keep up. Americans are feeling the pinch at the pump as energy prices continue to climb. Everyone making under $300,000, in other words 99 percent of people, are doing worse than they were two years ago. Inflation effectively has taken away an entire months’ worth of salary of the average American. No matter what Joe Biden’s spin doctors say everyone knows this.
The President’s budget is just going to make it worse. It is elementary economics that if you put more money into the money supply it causes inflation. The current plan is for the government to go on a spending binge. The Fed is talking about taking steps to curb inflation, but so far has done nothing but sit on the sidelines. This is a recipe for disaster.
The Democrats are doing everything they can to try and make it through the midterms. The President releasing a third of the Strategic Oil Reserve and his massive spending are a hail Mary pass to try and avoid getting crushed at the ballot box. It is not going to work. It is just a question of how carnage the left will cause in the meantime. The administration’s mouthpieces will keep spouting the same lines all the way into a depression.