Tuesday, March 29, 2022

Maybe we should have listened to Larry

This is an article back in November 2021: "Biden's Truly Reckless Spending Will Likely Be His Undoing."
With a full $1 trillion in prior federal emergency relief still unspent upon his taking office, Biden nonetheless pushed through the so-called American Rescue Plan, an additional purely partisan $1.9 trillion COVID-19 spending package.

In total then, the U.S. government spent more than 30% of the country's annual total economic output to try to stimulate the economy. This was unchartered territory. Many on both sides of the political aisle warned at the time that all this government spending could overheat the economy. Larry Summers, Treasury secretary under President Bill Clinton and National Economic Council director under President Barack Obama, summarized the concerns succinctly: "While there are enormous uncertainties, there is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability ... Stimulus measures of the magnitude contemplated are steps into the unknown."

Larry Summers was wrong about one thing: inflation is the highest it's been in two generations.

3 comments:

Anonymous said...

The cost of purchasing burner phones is astronomical... or will be.

White House records turned over to House show 7-hour gap in Trump phone log on Jan. 6

https://www.cbsnews.com/news/trump-calls-seven-hour-gap-january-6/



In non-sedition news...

Joe Biden's fiscal incompetence is contagious! 38 other advanced economies in the world are also suffering jumps in inflation right now, at the same time, thanks to Grandpa Joe's unique destructive policies.

Anonymous said...

"Joe Biden's fiscal incompetence is contagious! 38 other advanced economies in the world are also suffering jumps in inflation right now, at the same time, thanks to Grandpa Joe's unique destructive policies."

This comment is more accurate than you intend. The economic policies of the United States have far-reaching impacts on the rest of the world. Fecal-brained Presidents create economic environments that wreak havoc on most everyone--especially those least able to weather the resulting 'misfortune.'

Anonymous said...

Especially those least able to weather the resulting 'misfortune.'

The struggling third world economy of downtrodden Germany just had to impose gas rationing.

Specifics, please. Enlighten us what Biden has done in one year's time that has identically impacted countries around the world, regardless of their liberal and conservative fiscal policies.

Spain's far left socialist Prime Minister and Brazil's far right conservative President each have approval ratings below 40% due to their "mishandling" of inflation.

While blaming fecal-brained Biden for the cost of soda in Australia, you'll need to ignore the COVID pandemic's effect on the global supply chain, and the non-vaccinated morons who did their part to make the pandemic even worse.