From article Biden is about to drive us off an economic cliff. Andy Puzder. October 17, 2021.
The problems in the supply chain aren’t going to resolve themselves any time soon.
It is difficult to imagine a worse time for massive increases in taxes and spending, yet that’s what Democrats in Washington, D.C. have in mind.
We are all aware, as Press Secretary Jen Psaki stated this week, President Joe BIDEN VIEWS THE COVID-19 PANDEMIC AS AN OPPORTUNITY TO "MAKE FUNDAMENTAL CHANGES IN OUR ECONOMY."
But the changes he has in mind are about to drive us over an economic cliff.
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Businesses of all sizes are already being buffeted by seemingly intractable supply chain constraints, along with labor shortages, and unusually high consumer demand—all driven by pandemic-lockdown conditions that are only GOING TO CAUSE PRICES TO SOAR AS WE GET CLOSER TO CHRISTMAS.
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It doesn’t take a Ph.D. in economics to recognize restricted supply coupled with enhanced demand is a recipe for inflation, which has already been rising at a worrying rate for several months.
An increased tax burden coupled with an artificial spike in demand from A GLUT OF NEW GOVERNMENT SPENDING COULD TURN INFLATION INTO MORE SERIOUS STAGFLATION HOBBLING OUR ENTIRE ECONOMY.
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The problems in the supply chain aren’t going to resolve themselves any time soon.
For years, BUSINESSES HAVE RELIED UPON JUST-IN-TIME SUPPLY CHAINS TO MEET CONSUMER DEMAND WHILE MINIMIZING WASTE AND WAREHOUSING COSTS.
This approach can be extremely efficient, allowing companies to keep prices low and delivery times short.
But it also depends upon factories with ample production capacity, a reliable supply of ships and shipping containers in which to send goods across oceans, warehouse space in which to sort and store products, trucks and trains to move products overland, and much more.
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Today factories are facing severe staffing shortages and pandemic-related disruptions to their normal operations.
Empty shipping containers are piling up in American ports, rendering them unavailable for use by foreign exporters.
Ships are being forced to linger outside ports for days or weeks before offloading their cargo.
Warehouses are filling up because there aren’t enough trucks to bring products to their final or intermediate destinations.
NOW AT ALMOST EVERY POINT ALONG THE EXTREMELY LONG AND COMPLEX SUPPLY CHAINS, THERE ARE BOTTLENECKS AND SHORTAGES.
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The net result is an unprecedented disruption to our daily lives, characterized by empty grocery store shelves and warnings to place Christmas orders months in advance.
Eventually we will reach a new equilibrium—most likely a less efficient but more resilient one that involves larger inventories, and thus greater waste and higher production costs.
In the meantime, WE SHOULD BE TRYING TO DO EVERYTHING WE CAN TO AVOID PLACING ADDITIONAL STRAIN ON SUPPLY CHAINS OR IMPOSING ADDITIONAL BURDENS ON BUSINESSES, especially small businesses.
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In the midst of this economic readjustment, POLITICIANS IN WASHINGTON ARE ACTING AS THOUGH THEY CAN MAGICALLY CONJURE UP THE MEANS TO IMPLEMENT ANY PLANS THEY CHOOSE TO WRITE INTO LEGISLATION.
They can’t.
The policies they craft in Congress have real-world consequences far broader than most elected officials comprehend.
Those consequences may be unintended, but they are no less real.
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Following months of massive government spending, businesses across the country are struggling to stay open, either because BUSINESSES CAN’T FIND ENOUGH WORKERS OR BECAUSE THEY CAN’T SOURCE THE INPUTS THEY NEED to meet customer demand.
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What sense does it make for the Biden administration to focus most of its energies on trying to salvage legislation that calls for trillions of dollars in new government spending of taxpayer money, which it plans to finance with historic tax increases?
TRILLIONS OF DOLLARS OF NEW FEDERAL GOVERNMENT SPENDING AND TAXING WON’T SOLVE THE PROBLEMS AFFLICTING THE AMERICAN ECONOMY, IT WILL EXACERBATE THEM.
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In addition to more than $1 trillion in so-called "hard" infrastructure spending, the DEMOCRATS WANT TO SPEND TRILLIONS MORE ON GREEN ENERGY SUBSIDIES AND ENTITLEMENTS FOR PEOPLE WHO CHOOSE NOT TO WORK.
All this at a time when there are millions of unfilled job openings and shortages of basic inputs such as lumber and microchips.
Stimulating the demand side of the economic equation without addressing deficiencies on the supply side will only drive prices up while keeping a tight leash on potential growth—in a word, stagflation.
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You can’t "Build Back Better" without either workers or supplies.
You would think that was fairly obvious, but apparently it is not.
Yet, none of this should come as any surprise to President Biden and his progressive policymakers.
After all, THEY THEMSELVES CONTRIBUTED TO OUR CURRENT ECONOMY’S PROBLEMS WITH $1.9 TRILLION IN GOVERNMENT HANDOUTS LAST MARCH.
Within a month, inflation surged past wage growth for the first time since before the Trump presidency.
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Now Democrats want to double down on this gross economic error. Unfortunately, EXPECTING DIFFERENT RESULTS WITH MORE OF THE SAME ECONOMY-DAMAGING POLICIES IS A FORM OF FISCAL INSANITY THAT OUR COUNTRY CAN ILL AFFORD.
(end of article)
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“Trillions of dollars of new federal government spending and taxing won’t solve the problems afflicting the American economy, it will exacerbate them.”
Democrats say higher taxes and more government spending will solve our problems, this deadens the economy and drives up costs and prices.
Republicans say lower taxes and less government spending will solve our problems, this enlivens the economy and drives down costs and prices.
Democrats actually want to deaden the economy:
Deadened economy = less economic growth means = less increase of human-caused global warming.
We and They see and know actually the mostly cyclical and natural warming will accelerate growth of the economy because much currently barren land will become green and food-producing, this is the real reason for climate change alarmism.
Deadened economy = more of us are poor = more government dependency = increased perceived need for more Democrat and Socialist politicians.
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“Expecting different results with more of the same economy-damaging policies is a form of fiscal insanity our country can ill afford.”
Oll of this “insanity” nonsense forever makes sense if one understands and accepts tHAT about half of us are negative misery-lovers: the more poverty and misery and enjoyment of complaint the better.
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