Milton Friedman’s definition of inflation as “too much money chasing too few goods” perfectly captures the essence of President Joe Biden’s economic policies. By flooding the market with federal stimulus while constraining the supply of goods and services through higher taxes and regulations, Biden has created a cost-of-living crisis and an economy in decline.
The free enterprise system, once the backbone of the US economy, has been replaced by a bureaucracy-driven economy, marked by unbridled spending, and government dependency. The president’s signature legislation, the “Inflation Reduction Act,” imposed tax hikes on job creators, expanded Obamacare subsidies for the wealthy, and handed out billions in wasteful tax breaks to green energy corporations.
Biden’s policies have paid people more to stay home than to return to work, waived work requirements in welfare programs, and unleashed a barrage of regulations on small businesses, costing hundreds of billions of dollars. His assault on domestic energy has increased production costs across the board, exacerbating the crisis.
During the presidential debate, Biden touted his presidency as a success, claiming the economy is strong and lives are better than four years ago. However, the truth is starkly different. The nonpartisan Congressional Budget Office projects a staggering $1.9 trillion deficit for fiscal 2024, adding to the record $7 trillion added to the federal debt under Biden.
The deficit has fueled record inflation, resulting in the highest interest rate hikes in a quarter century. The cost of servicing the national debt has increased by $540 billion, or 153%, since Biden took office, and is projected to double to 18% in 2024 and rise to 23% in 2034.
Inflation has climbed to 9.1% in June 2022 and remains above the Federal Reserve’s target. Prices have risen nearly 20% since Biden became president, forcing families to pay more than $17,000 more per year, or $1,400 per month, for the same goods and services.
The economy is sagging under the weight of these misguided policies, with GDP growth dropping significantly. Consumer confidence is declining, and consumers believe a recession lies ahead. Total household debt has increased 21% since January 2021, amounting to a record $17.69 trillion.
There is hope for change, however. By reducing spending, growing the economy, and restoring economic freedom and fiscal responsibility, we can bring down inflation, interest rates, and grow the economy. It’s the only path leading to America’s future prosperity.
