Joe Biden is a Democrat. And Democrats are notoriously not as fiscally responsible as their Republican counterparts. We’re seeing that now. Joe approved the stimulus checks to go on past the Trump administration, creating the inflation we’re seeing now. And we’ve sent billions to Ukraine without seeing any kind of return on our investment. And the bad spending continues month after month.
A former U.S. Treasury Secretary already expressed concerns over the unemployment rates soaring. And now, Tomas Philipson, the former White House Council of Economics Advisors Acting Chair spoke with FOX Business to say that, he thinks that the Biden administration “oversold how fiscally responsible they are.”
He went on to explain that “inflation away the debt is just a tax right on the population.”
The state of the economy has been on troubled ground for over a year. And the Federal Reserve hasn’t been exactly fast to act, which only creates one crisis after another.
Philipson called the White House messaging “misleading” because they talk about Build Back Better that will end up costing $5 trillion. They explain that because COVID programs are expiring that there’s not only inflation but also a deficit reduction. Economists are struggling to make sense of all that the Biden administration is doing.
Think about it like this. People can’t buy houses in today’s economy because they can’t take on the debt when there are so many other expenses on the rise. What does the Fed do? They raise interest rates, making it even MORE expensive to buy a house. And it’s one of the reasons why homelessness is on the rise.
The Fed will be making a decision in the next few weeks about whether they will increase or decrease the interest rates. They’ll use the Consumer Price Index as well as unemployment numbers to help them with that decision.
Meanwhile, Larry Summers, the former Treasury Secretary, has predicted that unemployment will hit 6% in September.
Why is unemployment on the rise again? Businesses are downsizing. It’s why many economists believe we are already in a recession as opposed to heading toward one.
Even as some industries are doing well, others are letting people go as a way to save money and batten down the hatches so that they can survive the economic storm that is headed their way.
If the Fed continues to act slow, it’s going to result in yet another crisis. As Philipson says, “It looks like it’s going to take them four years to go back to pre-COVID balance sheet levels, and it’s going to take them eight years, at this going rate, to go back to pre-financial crisis level of the balance sheet.”
We don’t have four years to wait – and we most certainly don’t have eight years.
If Biden were to actually realize that there’s plenty of untapped potential within the U.S. oil industry, it would be great for the country. The economy could bounce back quickly. The question we really have to start asking is whether Biden WANTS the economy to bounce back. If the goal is to get more people dependent on the government so that the progressive agenda of moving toward socialism can be realized, the administration is doing everything right.
As Philipson pointed out, “Imagine if the Trump administration was currently in the White House, we would be selling gas to Europe like there was no tomorrow, essentially. And that’s not on the table currently.”
Maybe the only way to get the country back to being fiscally responsible is to focus on getting more Republicans in Congress. It’s a start. Then, 2024 could be the real turning point.