[Tuntematon, Valkoisen talon valokuvaajat (01/20/1977 - 01/20/1981), Public domain, via Wikimedia Commons]

Stagflation Could Consume The Biden Administration

It’s the term that destroys presidential administrations–stagflation. 

Stagflation comes from combination of liberal spending and liberal regulatory policies, which create economic malaise consisting of simultaneous high inflation and rising unemployment. It’s akin to a two-headed beast, challenging economists and policymakers alike. Inflation erodes purchasing power, discouraging spending and investment, while unemployment stifles growth and exacerbates social tensions.

The American stagflation came following the 1970s oil crisis and consumed the presidency of Jimmy Carter. Now, the Daily Caller explains, it’s rearing its ugly head under Biden. 

The U.S. economy is showing signs of stagflation as growth slumps down and prices continue to surge for average Americans, experts told the Daily Caller News Foundation.

U.S. annual economic growth measured just 1.6% in the first quarter of 2024, following a report of persistently high inflation in March of 3.5% year-over-year. The combination of both low growth and high inflation, in conjunction with continuously high amounts of government spending and debt, has led to signs of stagflation in the U.S. economy, which wreaked havoc on U.S. consumers throughout the 1970’s, according to experts who spoke to the DCNF.

“It’s not so much that we risk stagflation as we’re already there,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the DCNF. “We have basically pulled forward trillions of dollars of economic growth by borrowing from the future, but that must be repaid at some point. And it is highly inefficient as well.”

“Stagflation is the inevitable result of Bidenomics,” Michael Faulkender, chief economist at the America First Policy Institute, told the DCNF. “When you massively increase spending, whether green subsidies or student loan forgiveness, while simultaneously reducing the ability of the economy to produce because of all the regulatory restrictions being imposed, you get reductions in growth with higher prices. If Bidenomics continues, then we should expect stagflation to continue.”

As part of his comprehensive agenda, President Biden has embraced policies of radically increased spending, exemplified by the $1.9 trillion American Rescue Plan in March 2021 and the $1.2 trillion Bipartisan Infrastructure Law in November 2021. 

Additionally, in August 2022, the president signed poorly-named Inflation Reduction Act, authorizing $750 billion in new spending, with $370 billion earmarked specifically for green initiatives aimed at addressing climate change.

Biden labeling his economic policies “Bidenomics” may go down as one of the biggest blunders in political history. 

[Read More: Dan Rather Returns]






1 Comment

Leave a Reply

Your email address will not be published.

Previous Story

Dan Rather Returns To CBS News For The First Time Since Fake News Scandal

Next Story

Street Fighting Erupts At UCLA, Newsom Silent