Some of us would argue that there is no real right and wrong way to do things. Sure, there are political preferences, such as the left’s penchant to make government bigger and the right’s opposite desire. But, much like folding your shirts or hanging them up, it’s all really a matter of opinion, right?
Well, when it comes to certain things, that just isn’t true.
Take the economy, for example.
As you know, our economy is basically made up of an equation of sorts, with a lot of different multipliers and factors (unemployment rates, inflation, supply, demand, etc.) And that means that to get a certain outcome, say a thriving and prosperous economy for all Americans, there are only certain steps that can or should be taken – much like a mathematical equation.
And according to at least one expert, Biden isn’t doing any of those.
Meet Larry Summers, an economic expert and one who even has a more liberal disposition, as he once served under Bill Clinton as Secretary of the Treasury and then under Barack Obama as the director of the National Economic Council.
Now, given this background, you might think that Summers would be prone to bigger government spending, as well as most of the agenda items Biden is trying to push forward. However, as he recently explained in a March 29 interview with the New York Times’ Ezra Klein, that’s definitely not the case.
As you might imagine, Klein and the Harvard-trained economist discussed the current problems with our economy, namely inflation, and what it would take, if anything, to correctly address that and get our economy back under control. In addition, the probability of a recession as a result of such inflation was talked about.
Now, at this point, Summers said with current factors such as the rate of inflation and unemployment, it would be nearly impossible not to enter into some measure of a recession within the next year or two. However, if the correct steps were taken now, it could be a very “mild” and short-lived one.
He said, “I think that the magnitude of the imbalances and excess demand in the labor market are sufficiently great that the odds are probably three and four that we will not get inflation down without running a recession.”
To explain why, he pointed at history, saying that when both unemployment and inflation are at the rates they are now, there has always been a recession to follow. But what Biden and his administration do now can dramatically reduce just how bad that recession is.
The problem, as Summers said, is that Biden doesn’t seem to either be listening to his financial advisors, or he just doesn’t care.
Take his “plan” to increase supply in the coming months, for example. Summers said this is actually the exact opposite of what he needs to be focusing on. Tariffs are another “tool” that Biden and his staff could use to help with inflation. He explains that if tariffs were reduced rather than increased, it would “make more goods available at lower prices and perhaps reduce the consumer price index by 1 percent or more.”
Biden is only increasing tariffs.
Our president could have also chosen to “public procurement as inexpensively as possible,” which would have also reduced prices of a “whole set of things the government buys” as well as increased competitive pressure.
Again, that’s not what Biden is doing.
Instead of “buying cheap,” as Summers calls it, he has shifted to only buying what will “protect certain key constituencies.”
Yes, you read that right. Biden might be “buying American” as he promised, but he’s only doing it when it comes to products that protect his political allies. The economy overall, however, is not getting a boost from it.
In addition, Summers told Klein about a number of ways Biden could encourage economic growth to reduce both inflation and the chances of a severe recession. But he quickly added that he doesn’t see the Biden White House taking any of those steps any time soon.
Case and point: Biden promised to fix our economy. And as this highly trained and experienced expert just admitted, Demented Joe is doing a damn thing about it.