The Choice Is Between Bad And Awful

On Wednesday, Armstrong Economics posted an article about inflation and recession.

The article reports:

Federal Reserve Bank of Minneapolis President Neel Kashkari has advised against anticipating near-term rate cuts. While speaking to the Financial Times, the Fed president stated that people would simply prefer a recession to continued inflation.

“I have learned that the American people—and maybe people in Europe equally—really hate high inflation. I mean, really viscerally hate high inflation,” he told the Financial Times’ The Economics Show podcast. Kashkari is speaking as if we are not already in a recession. It is not difficult to understand the “visceral” hatred people around the world feel toward rising prices. The effects of inflation are felt with every purchase, causing the average person to adjust their entire lifestyle.

The article concludes:

Real prices have far surpassed anything they calculate in CPI. Everyone understands that prices have risen far more than the arbitrary number the Fed provides us. Taxes are continually increasing for everyone in every tax bracket. The government not only adds to inflationary issues with their spending but then expects their citizens to foot a portion of the bill with taxes, which will simply never be enough.

Then we have Washington telling the masses to blame corporations for price gouging while raising their taxes and making it increasingly difficult to conduct business and maintain a large workforce. It is not that the people would prefer to be in a recession, the real issue is that countless people are entering survival mode. People everywhere want to hold onto whatever they may have out of fear for the future, but they are unable even to hoard as real prices now demand they hand over whatever they have to maintain their lives.

In a recession, consumer spending drops, and people lose their jobs. A service economy such as the one America currently has is more vulnerable to recession than a manufacturing economy. A recession creates hardship for working families.Inflation impacts both working families and retirees. Either one is a bad deal. The most practical way to deal with inflation in America would be to cut government spending and to resume domestic oil production. Both of those things would help revive a miserable economy.

If You Repeat A Lie Often Enough…

On Tuesday, The New York Post posted an article about something the Biden administration is claiming as a success.

The article reports:

Are you better off than you were one year ago?

That’s the message the White House is trying to convey in a year-end memo to Democratic lawmakers and other supporters, according to a new report from Axios.

The memo — titled “2021: POTUS Delivered for Working Families” — illustrates in words and graphics what the Biden administration describes as a year of accomplishments, according to the outlet.

The two-page document touts the COVID-19 vaccination program, the widespread reopening of schools, and a decline in the unemployment rate and jobless claims. It also hails the passage of two major spending bills this year: the $1.9 trillion American Rescue Plan in March and the $1.2 trillion bipartisan infrastructure framework last month.

“In spite of unprecedented crises and opposition from Congressional Republicans, President Biden, Vice President Harris, and Congressional Democrats got an enormous amount done for the American people in 2021​,” the memo claims.

Well, let’s see. Unprecedented crises and opposition from Congressional Republicans are listed as the obstacles the Biden administration had to overcome. I may have missed something, but did the Republicans try to frame and impeach President Biden? Did the Republicans go behind his back to talk to China? The mess we are currently in has much more to do with the actions of the Biden administration than it does with any Republican opposition. President Biden unilaterally shut down the Keystone XL Pipeline and limited America’s development of its natural resources–ending our energy independence. That in turn caused the price of gasoline at the pump to double in a year, contributing to inflation. The runaway spending (of which the Republicans were a part) also contributed to inflation. The opening of the southern border was also done unilaterally. The crisis there is caused by the Biden administration. No one else is to be blamed.

The article notes:

Absent from the document is any mention of​ inflation, which is at a 39-year high. Nor is there any discussion of an increase in COVID-19 cases across the country as the Omicron variant becomes the dominant strain, the collapse of the multitrillion-dollar Build Back Better plan after Sen. Joe Manchin (D-WV) pulled his support, or the tragic aftermath of the botched US military withdrawal from Afghanistan.

I am not sure too many Americans are currently convinced that they are better off now than they were a year ago. Their grocery and energy bills are an everyday reminder that making ends meet is becoming more difficult.