Monday, May 02, 2022

The Democrat Party's Runaway Inflation Crisis

 When I was a Freshman in High School in 1972, I first started to study and learn about the economy and inflation.  I have studied the economy and its related components for the last 50 years earning a Masters Degree in Economics many years ago and teaching Economics and Business classes for 40 years now at colleges and universities throughout the country.  In my classes over the years I have taught at times where there was inflation however I have never taught during the time frame that we live in today that includes runaway inflation.  Runaway inflation is the worse type of inflation that an economy may have and can be defined as a rapid increase in the price level with a massive decrease in the value of money. Runaway inflation is caused by several factors that include excessive government spending of money, an excessive expansion of the money supply through the issuing of more money into the economy by government and a lowering of productivity and elimination of economic growth in the economy.  Currently we have all of these issues and more in our economy that are causing runaway inflation and they can be directly tied to the failed economic policies of the Democrat Biden Administration.

Many mistakes have been made by the Biden Administration and the Democrat Party led Congress.  America had energy independence and security through the Trump Administration mainly due to more drilling of oil domestically, the fracking of natural gas and the Keystone Pipeline.  These components allowed for very low energy prices to exist in our country and for stable prices to exist.  One of the first things the Biden Administration did was to create an almost immediate dependency on foreign oil in the guise of creating non polluting green energy policies that somehow does not use fossil fuels.  There has been a large push to go to electric vehicles that still must use a form of fossil fuel energy to charge the vehicles batteries and are pretty much not affordable for the general working public due to their massive costs.  A much wiser policy was for our country to continue to be energy independent while allowing the tools of the free market system to help develop the alternative energy markets and products that would become affordable for the economy.  This misguided policy that the Biden Administration slammed on the economy has led to runaway inflation, massive increases in transportation costs which in turn have increased the costs of all products and goods delivered to stores in the economy.  The biggest supply shock has been to the cost of food items in the grocery stores which are fast making food a luxury item in the economy for most families.  A five dollar a gallon price for diesel fuel is passed on to consumers contrary to what the Biden Administration and the state run media wants us to believe.  We see a massive trickle down effect in our economy from this horrific energy policy.  Nor do wee see any reasonable and or rational policy to get people back to work and help to alleviate the massive supply chain issues the economy faces which also contributes to the runaway inflation our economy has today. 

The Democrat Party has a big problem.  It is what is known as runaway inflation.  It is their manufactured crisis that could have been completely avoided by much more economically coherent governing and actions.  Instead it has shown the American Taxpayer its economic illiteracy through economic actions that are meant to damage the American economy and hurt its citizens.  For what reason is beyond me other than it wants America to see in full spectacle the horrors of a command, Socialistic economy and society that has never worked in the history of the world and is not working today for the Socialists and Communists who control today the Democrat Party of America.  A party of complete ineptness and corruption that is trying to portray itself as the cure-all to their manufactured failures of so many years now.  Mr. Biden, his Administration and the Democrat Party have created the economic crisis that we all must try to deal with in May 2022.  And there was no reason whatsoever for this to happen.    At least in 2020 under President Trump who loved his country, who hated the corruption/swamp of Washington D.C., economic prosperity was the norm and the American public was prospering.   American voters in November are not better off than they were two years ago.  They are much worse off than they were in 2020.  This economic policy of failure is what the Democrat Party of the United States is running their campaign based upon.  And it is why they will go down in massive defeat on Election Day.  And it is 1776 all over again. 

No comments: