Sunday, May 23, 2021

EDITORIAL: Joe Biden and the magic money nightmare - The Spectator World

EDITORIAL: Joe Biden and the magic money nightmare - The Spectator World:
  • It’s unfashionable to worry about inflation. It’s also right
"'We have nothing to fear but fear itself,’ said Franklin D. Roosevelt famously, at his first inauguration in the depths of the Great Depression in 1933. 
What he didn’t allow for was the danger of overconfidence. 
Yes, a country can talk its way into recession, but it can also print and spend its way into an inflationary nightmare. 
That is the worrying prospect now facing America as Joe Biden, a president often compared to FDR, tries to tempt the country into a post-Covid spending spree courtesy of magic money.
It has become deeply unfashionable to worry about inflation. 
  • According to proponents of modern monetary theory, what happened in Weimar Germany and more recently in Mugabe’s Zimbabwe somehow is not relevant to developed economies. 
  • Governments can print their way out of economic crises without worrying about debt or inflation. 
  • Why, look what happened after the 2008-09 crisis when governments first started quantitative easing, they say: we had no inflation problem after that, however the Cassandras cried. 
  • Biden’s various multitrillion plans, including that $1,400 of helicopter money to every American who earns up to $75,000 a year, are not risky bets but wise and equitable policies which will return the US to growth and a fairer economy...Read all.

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