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To The Point with Mick Rich | Biden Legacy of Inflation
Will Joe Biden duplicate Jimmy Carter's Economic Record
Inflation steals from those that can least afford it.
It has been decades since Americans experienced double digit Inflation. The last time was during the Carter Administration. Some fondly recall his Presidency, I recall struggling to make living. Carter's economy had double digit inflation, double digit interest rates and double-digit unemployment rates. Those three rates were known as the "Misery Index".
The Trump Economic Boom was Interrupted
Trump's strategy of lower taxes, less regulations and energy independence created a booming economy that resulted in low inflation, high employment and growing wages. The shutdown of the economy reversed gains of the previous three years.
The crisis is coming to an end with vaccinations and American's saying enough. Our economy is picking up where it left off in early 2020, however; the Biden Administration is reversing Donald Trump's economic strategy with higher taxes, increasing regulations and ending energy independence.
We are back to an inefficient economy where an hour of work buys less.
Joe Biden is taking from the Zoomers to give to the Millennials
The Federal Reserve's portfolio of securities grew from $3,9 trillion to $6.6 trillion. The stimulus plans now totals $5 trillion dollars. The Federal Reserve continues to keep interest rates at historic lows of 0 to 0.25 percent.
With this much cash, who cares how much anything costs.
Building Inflation Leading Indicator
I am a Contractor. We have seen material prices increase from 10% to 50% since the first of the year. Now critical building materials deliveries are delaying construction projects. We are hearing there will be allocations of scarce materials (steel and copper). We will soon be saying, "I don't care how much it costs, I need it now".
This is reminiscent of the building climate during the Carter Administration. Can the Carter double digit inflation rates be far behind?
Who will be the next visionary to address economic challenges?
The economic challenges were ended in the past by visionaries. Ronald Reagan did it with less taxes and less regulations. Donald Trump did it with both of those and energy independence (energy independence made the dollar a petrocurrency). I believe our next President must add to those three and by putting technology back in the hands of the American people (break up big technology monopolies).
The current administration is as clueless as the Carter Administration. We are fortunate there are many Republican Governors that have been successful for their states that are lining up for 2024.
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