Government Watch / Politics

Democrats’ Inflation Hurricane

hyperinflation

Brace for heavy weather. Biden and Democrats are driving inflation to hurricane levels. In 2018, the annual inflation rate was 1.9 percent. In 2021, the annual inflation rate is 5.3 percent. It is about to rip shingles off personal budgets, especially for those on fixed incomes, with credit card, mortgage, or variable interest debt. Why? See, e.g., Current US Inflation Rates: 2000-2021.

Three reasons explain why inflation is about to get worse, not better.

First, Democrats’ excessive federal spending is unaffordable. Driven by vote-chasing, irresponsible fiscal stewardship, and one-party control over House, Senate, and White House, Democrat spending is effectively unchecked. Trillions more are coming if Democrats get their way. Beyond the current fracas over how to twist “reconciliation” to get votes needed down to 51, intimidate the parliamentarian, jam two bills totaling $4.7 trillion through both chambers, Democrats are likely to continue spending. See, e.g., $3.5 Trillion Is a Phony Number.

Above and beyond this wild, supplemental, “non-regular order” spending in the fiscal year 2022, more can be expected. While passage of either the $1.2 trillion “infrastructure” bill or $3.5 trillion “human infrastructure” (or “Build Back Better”) bill – or both – will quicken inflation, more can be expected.

No one is talking about this, but after December 3, a continuing resolution runs out, and Congress will likely pass an “omnibus bill,” capturing in one bill the unfinished and delayed “regular order” process for funding programs until October 2022.

Into that “omnibus bill,” or emergency legislation passed at the same time, Democrats may push other spending. Specifically, as the “delta variant” of COVID continues, and Democrat mandates shutter businesses, an excuse may be made for more COVID relief spending.

In addition, on December 31, many current provisions end, including the payroll tax deferral, employee retention credit, enhanced child tax credit, tax extenders, emergency disaster loans, and various medical and fiscal checks, which could be suspended by Democrats. All of this produces increased spending.

Second, Democrats’ anti-energy independence hurts. Energy costs are soaring – because Biden and the Democrats shut down, penalized, and disincentivized US energy independence while proving unable to lower the international cost of oil through diplomacy. See, e.g., OPEC+ Predictably Rejects Biden Plea For More Oil Production.

The result has been both predictable and devastating. Oil is now at a near-record high, impairing Americans at the gas pump and suggesting oil shortages and sky-high fuel costs for winter heat. See, e.g., Oil hits $80 per barrel a seven year high; Biden Caught Flatfooted By Skyrocketing Oil Prices.

As the US energy sector shrinks, consolidates, tries to survive, Biden and Democrats pursue the wishful idea that multi-decade build-out costs for wind, sun, and other renewable power generation will magically compensate for non-production, create jobs as fast as destroying them, and keep costs low. That is worse than miscalculation – it is pure, unadulterated fiction.

The truth is that Biden and Democrats are destroying the US energy sector, chasing energy unicorns as they kill horsepower that runs the US economy, US cars, trucks, buses, trains, planes, and production – not to mention economically keeping Americans warm in cold winter months. The result is a double hit that will raise consumer costs. They will wipe out a sector’s employment while causing consumers to pay more for what that sector used to produce – and from foreign sources. See, e.g., About Joe’s Energy Jobs; Gas Prices Surge as Biden Targets U.S. Oil Production; Biden’s assault on oil and gas industry threatens jobs, energy security.

Third, Democrats’ anti-business policies raise prices. As the Biden White House and Democrats push hard-to-meet mandates on businesses nationwide, provide cash and non-cash benefits rewarding non-work, and excuse increased dependence on the government, the effect is business cuts and closures.

Business cuts and closures come with obvious effects, including lower employment (already starting to show up in the numbers), lower consumption, higher costs for what we are producing less of, supply chain disruptions within and across economic sectors, increased foreign dependence (since we have less of what would be produced domestically), and reduced consumer confidence. The big effect is less work and income trying to buy less available goods and services at higher prices.

Even mainstream media are being forced to report that the economy is headed lower, prices higher, and rosy Democrat projections are simply not bearing up. See, e.g., Employers add a dismal 194,000 jobs in September, unemployment rate at 4.8%; Buckle Up: 3 Reasons Why Inflation Is Rising.

Where does all this excess spending, anti-energy independence (affecting all sectors), and anti-business sentiment lead? Until fiscal restraint returns, program cuts match revenues, mandates come off, taxes come down, and free enterprise, job creation, and investment are respected – no place good.

In short, brace for heavy weather. Biden and Democrats are driving inflation to hurricane levels, spending like a wind machine, toppling pillars of the US energy sector, hampering the production of goods and services, creating an imbalance between supply and demand, sure to whip up the winds of inflation.

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George Kamburoff
9 days ago

The comments here are like those from Glavset, the name of the Russian hackers. I have many of their names.

George Kamburoff
9 days ago

This is nonsense.
Why does this group take the side of conservatives who want to deny healthcare to you?
And why would any of you vote for them?

Mario Capparuccini
9 days ago

In short, welcome to hell. Could we expect anything different from the party of Satan? Abortion, Critical Race Theory, policies that promote sexual perversion, euthanasia, and failure to prosecute murderers and other criminals are all from hell. The Democrats have given us the gift of bringing us to hell while we are still alive. Steadfast prayer to the living Triune God is the solution.

George Kamburoff
9 days ago

We are digging ourselves out of the Trump Debacles, whicn cost us 40,000,000 American jobs.

Karen
11 days ago

I’m on SS and cannot afford this unthinkable rise in everything. Do the right thing Biden and have a little consideration for us poor people. It may even save you presidency.

Max
11 days ago
Reply to  Karen

Sorry, your wish won’t happened. Not part of their plan.

George Kamburoff
9 days ago
Reply to  Karen

Biden just gave you a raise.
Not Trump.

Roger
12 days ago

Hang onto your chopsticks! Hurricane Xi JinBiden is about to HIT with NINJA-Force!

Darwin Benedict
13 days ago

Our only hope to all this is to see Trump back in office, but don’t know how that would take place since everything in Washington is controlled by the Democrats.

Robert Goidel
14 days ago

Inflation is the Federal Government tax. If any of the readers remember the 1970’s, it was not fun at all. Then when Ronald Reagan was elected, everything, changed for the better. I remember working for an importer. The wages I received initially was okay, then during the 1970’s, my earning were dwindled away on just living expenses. It was very hard to get any kind of raise and finally after 10 years of working for the importer, I left to start my own business.

Gary
12 days ago
Reply to  Robert Goidel

I remember it well, Carter had us in a terrible mess. Thank God for Reagan coming in and fixing it. We are blessed that a super strong Conservative seems to show up when we most need them.

Hal
14 days ago

Inflation is a Federal Government tax … the effect of which can be denied by our mealy mouthed DemocRat political leaders (including those behind the scene working the strings). If you think that this is not true, you better do some research as to how it works. The government in power will try to convince you that the Government is a “victim” of inflation too. But that is a smoke screen,… Government spending beyond tax receipts is a disguised way of raising taxes and not being blamed for it.

Dave Williams
14 days ago

For those who are concerned about the depletion of Social Security, Medicare and other federal programs, what effect do you think will there be from millions of uneducated invading criminals coming across the southern border?
I noticed that Biden suggested giving each of them approximately $86,000 annually in the ‘reconciliation’ bill.
With government expenditures of trillions of dollars, what will be left to fund Social Security?
Also, one might note that each trillion the government spends costs the average taxpayer approximately $8500. Therefore the current debt evenly divided up is approximately a quarter million dollars per taxpayer. And likewise, the 3.5 trillion ($3,500,000,000,000.00) they are proposing in the reconciliation bill would be another thirty thousand dollars of debt per taxpayer.
When the average family income is about $80k and each family’s portion of the federal debt is approximately $800,000 the federal debt is approaching insanity.

Janet
13 days ago
Reply to  Dave Williams

And then there are those of us that have a fixed income that is no where near that figure. We are a household of 1 that has to pay the rent that a household of 2 or more pays and for all the rest of it. What happens to us? My friend was excited to see how much the increase for Social Security will be next year, but inflation has already eaten that up and we will only be further in the hole by the time we get the increase. How is it that people are so blind and ignorant when it comes to this concept?

PaulE
14 days ago

RBC,

The Democrats laid out exactly what they planned to do in 2020 should they win control of D.C. Their 2020 Democrat policy platform was pretty granular in detail and covered all the areas of the economy and social engineering they planned to enact. The time to prepare and plan for such a massive onslaught to the economy and societal norms in general was last year. With any such plan being ready to be enacted should the worst case happen. Well the worst case has happened and the Democrats are doing exactly what they laid out as their policies with predictable results.

The last 8 months are simply the warm up to what is coming down the road. We will be quickly catching up to mirroring what western Europe looks like in terms of energy, food, housing and taxation costs to the average consumer. If you want to see where we are heading, read or watch the British, French or German news concerning prices, regulatory and tax issues and the overall jobs situation.

Yes, inflation has risen and will continue to rise as a consequence of their existing changes already put in place. Inflation will be further stoked by the additional series of taxes and job killing regulations incorporated in both the so-called bi-partisan infrastructure bill and their standalone reconciliation bill. The latter locking us into a European social welfare model that will permanently retard economic growth going forward, which I doubt most Americans fully understand at this point. The economic and societal ripple effect from these two pieces of legislation will permanently alter the standard of living for the vast majority of Americans and NOT in a good way. So yes, Americans should indeed brace themselves for what will become the “new normal” coming down the road.

Raes
14 days ago
Reply to  PaulE

I agree…I have prayed and prayed to no avail…in my opinion…this must be God’s divine plan…I know that God has the power to change anything if he chose to…so yes…we need to brace ourselves… it has begun…for how long…who knows?… I seem to be the only vocal one…sadly…the silence isn’t going to help…we could at least go down with a fight…DON’T COMPLY!…HOW HARD IS THAT!…

Willy E
14 days ago
Reply to  Raes

Raes. You are right, we need to at least fight, not go gentle into the evil establishment night.

However, IMHO, being on your butt, or your knees, talking to yourself or your invisible buddy, will do little for the country. Take what you are “preying” about and form it into an American propaganda, or the American story, and tell it to the people. Tell it to anyone who will listen. That’s what the Deep State Establishment (the socialist democrats) do, and I call what they say agitprop, propaganda that continually agitates people.

We need to put out our own “agitprop” favoring our country, and do it in a way that counter punches everything the democrats say. We can prove what we say, they can’t prove what they say!

The country needs to know how the progressives work their “socialist magic snake oil” and how they infiltrate our government, and our schools, and how they program our children with their tommyrot, CRT, anti-American hate, systematic racism, and all the rest of their pipe dreams and lies. Socialism has never worked, and if they overcome the USA, it will soon be no more. Yes, we need to fight them every way we can, and fight to win for a change. Republicans don’t know how to fight to win and are too lazy to learn how. Hang your democrat and republican placards deeply in your basement closet, forget your petty personal politics, reunite as Americans, and charge forward into the elections ensuring they are fair, honest, and equal at all cost, whatever it takes. Don’t allow wholesale mail-in ballots, and require official photo ID’s in order to vote. Don’t let the evildoers cheat this time. Democrats cannot win an election without cheating. Maybe this time we can get a real president, who knows…

PaulE
14 days ago
Reply to  Raes

Sadly Raes, it takes far more than prayer to rein in out of control politicians intent on expanding their power and personal wealth at the expense of the citizens they are supposed to serve. This is not an issue where the metaphysical will be effective means of action.

HocasPocas
14 days ago
Reply to  Raes

Well Raes, I see by some responses to your comment that some people don’t know the power of our Heavenly Father, I believe he will show them his power in due time.

Luap Leiht
9 days ago
Reply to  HocasPocas

Which Heavenly Father are you referring to? Oh, and what are he/she/they/it’s pronouns?

Max
14 days ago
Reply to  Raes

Don’t stop praying and yes, GOD is still in charge.

Max
14 days ago
Reply to  PaulE

With my years of travel around the world, it is funny that when a “new” trend begins in Europe, it finds its way to the USA a few years later. As you stated in your comment, one has to wonder about the common sense of the Government hierarchy that believes that socialism is a success and that it should be applied to the USA. Everything the past administrations of last 45+ years has been for the destruction of the USA and the march toward the ONE WORLD ORDER. Your last statement is so awfully true.

PaulE
14 days ago
Reply to  Max

As someone who has also done a lot of world travel, I find that government in every place I have ever been to is concerned chiefly with growing the size and expanding the power of government itself. That is how “success” is measured from every political representative I have ever met with over the years. So to many American career politicians yearning for more power, personal wealth and greater influence, European or Asian socialism is indeed a huge success that should be emulated here. The negative impact on host that government feeds off of, the private sector economy and the citizens that pay their salaries, is considered incidental and acceptable. Hope this clarifies the supposed contradiction for you.

Understand that for the majority of senior government officials, they derive their “worth” or “value” from how many people report to them, the size of their budgets or how much influence they wield on a sector of the private economy. Socialism, with its focus on government influence or control of the private sector, is thus something that most career politicians find appealing. I used to work briefly in the federal government and the way some senior people spoke of the private sector and the average citizen would be shocking to most people.

If the public becomes lax and doesn’t routinely ensure that the public sector is kept small and in check, which the American people haven’t being doing for quite some time (decades), then it risks the outcome much of western Europe and Asia have already experienced and that we are now rapidly heading towards.

Understand that government is a necessary evil that is essential for a handful of things like national defense or major treaties. That is it. Beyond that, there is an inherent risk of growing government to become the master and the citizens the slaves. Flipping the control of public sector employees being accountable to private sector citizens to one in which the public sector now dictates to the private sector on how it shall operate and how much in taxes it will collect from them is a constant risk management exercise the citizens of the country have to perform and control.

Max
14 days ago
Reply to  PaulE

Thanks again.

Bill
13 days ago
Reply to  PaulE

Few people recognize the insidious growth of government as you do. Increase my “department, group, or office size” – making no difference that it does anything useful – means I get promoted! And DC, Regional Offices or Field Offices all work the same.
Rand did a study years ago, & found once a “group” exceeded 30,000, they could totally be busy, simply doing nothing but moving paper, monitoring the moving of paper, & rating paper creators. Accomplishing nothing! That is why we need smaller government agencies actually focused on doing something external.

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