"The optimists, including those at the Fed, believe that the current inflation is temporary — a combination of demand spiking as the economy reopens while the supply chains haven’t fully recovered from the disruptions of the pandemic lockdowns.
...In the third quarter of 2020, real GDP increased 33.4 percent.
And in the fourth quarter — which concluded weeks before Biden took office — growth was 4 percent.
- In about a year’s time, the federal government has pumped $6 trillion in COVID-relief money into the economy,
- on top of the trillions that the Fed has been releasing through near-zero interest rates and bond purchases.
- While some of it may have been necessary to prop up the economy early during the lockdowns, it was clearly excessive by the time of Biden’s $1.9 trillion bill passed in March.
- The legislation he signed was nearly triple the projected output gap.
- Now, Biden is pursuing an additional $4 trillion in new spending on top of what he already signed.
His budget projects that this year, the federal debt as a share of the economy will surpass the record previously set by World War II and will exceed that level every year over the next decade...Read all.
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