Biden has been on a mission to kill oil businesses and limit output from the beginning of his term. This strategy has had a vital role in the recent increase in energy costs. The poor, middle class and small companies are disproportionately harmed by rising energy prices, which the media pretends to worry about. The price rises will not be transitory if Biden and the Democrats focus on eradicating the fossil fuel sector without scientific evidence.
The inflation rate will naturally reduce after this year’s massive surge. Still, high prices will continue to hurt the economy until Biden and the Democrats return to increasing oil production, which they will not. The Associated Press overlooked that high unemployment rates are a major factor in rising labor expenses. These increased salaries are not temporary, and because they cascade throughout the economy, they result in considerably higher inflation.
Moreover, the US economy failed in COVID-19 in the spring of 2020, when lockdowns were implemented, firms shuttered or reduced hours, and consumers stayed at home. The economy made an unexpectedly strong comeback rather than sliding into a sustained slump. The introduction of vaccinations in the spring had given people the confidence to return to restaurants, pubs, and stores.
According to Furman, the economy was overstimulated by a rush of government expenditure, notably President Joe Biden’s $1.9 trillion coronavirus rescue plan. He claims that policymakers were so focused on averting an economic collapse that they “systematically underestimated inflation.” As the economy rebounded, ports and freight yards couldn’t keep up with the demand, and supply chains became clogged. He says, “Europe is experiencing the same supply shocks as the US, but it hasn’t received much support.”
Furthermore, productivity fell 5.2% in the preceding three months, higher than the Dow Jones forecast of a 5% loss. Since the second quarter of 1960, this was the largest quarterly drop. The Associated Press appeared to overlook all of the additional non-productive requirements and restrictions imposed on corporations by Democrats. These expenses contribute significantly to cost-push inflation rather than demand inflation, and they are permanent until reversed, which Democrats will not do.
Therefore, Joe Biden and others continue to claim that Build Back Better would cut inflation, that no one earning less than $400,000 will see their taxes rise, and that the package will be funded entirely. When this manufactured bubble bursts, the consequences are seldom pleasant. Although the media is aware of this, he promotes false information. Social Security claimants are getting the highest raise in a long time due to inflation. According to news, their Medicare Part B premiums increase by 14.5 percent or $21.60 per month. The media spends so much time keeping the public in the dark about reality while campaigning for policies that would kill the economy.