The Biden Administration’s management of the economy is without a doubt the worst we’ve seen in our lifetimes. When looking at the price of gasoline, which is now $5 per gallon nationwide, it’s no surprise that inflation hit a 40-year high with CPI reaching 8.6% in May. In accordance, a recent poll this month found that 91% of Americans are concerned about inflation and the state of the economy heading into midterm elections this fall. The University of Michigan’s Consumer Sentiment survey recorded the lowest measurement in its entire history. On top of that, Americans are unable to keep up with these price increases as real average hourly earnings decline 2.5% year-over-year in May.
People are struggling to pay their bills and put food on the table, and their frustration will show in the midterm elections this fall. According to CNN, 81% of Americans think the government is not doing enough to combat inflation, explaining Joe Biden’s recent all time low approval rating of 39% with 74% of Americans saying Joe Biden’s America is on the wrong track. The inflationary environment we are in is certainly multifaceted, with undeniable factors such as the Federal Reserve’s unchecked monetary policy and disrupted supply chains, but the Biden Administration has played a substantial role in exacerbating and worsening our economy. Here’s why.
As mentioned in the beginning of the article, gasoline is probably the most obvious consequence of inflation everyone is feeling right now. Joe Biden has enacted disastrous policies toward our domestic oil production that has practically destroyed our energy independence and now we are begging Middle Eastern adversaries to pump more oil into the global economy. Compare that to the record-high domestic oil production and exports under Trump’s deregulation of the oil industry to promote American energy dominance.
As soon as Biden took office, he shut down the Keystone Pipeline by means of executive order. It’s important to note that this pipeline’s daily output of oil would have displaced the entire supply which was lost due to sanctions placed on Russia. On top of this, he has paused oil and gas leases on public land, suspended drilling leases in the Gulf of Mexico and Alaska, and has made it more difficult to obtain permits due to EPA regulations. All this while Democrats claim the oil companies are “price gouging”.
Joe Biden and his radical Green New Deal energy policies have sent a message to the American Oil Industry that future investment in oil production will be unprofitable if not impossible due to the Government’s position on fossil fuels. Unsurprisingly, we did not see a rebound in oil production to pre-pandemic levels as the economy slowly began to open in 2021 when demand was increasing substantially. Democrats want you to suffer from high gas prices as a means of them mindlessly pursuing their anti-fossil fuel agenda and force everyone to buy a $60k electric vehicle.
When Joe Biden came into the White House in 2021, Democrats saw this as a clear opportunity to expand their social programs and the welfare state, the likes of which haven’t been seen since Lyndon B. Johnson’s Great Society Act.
Government stimulus has played a significant role in injecting money into an overheating economy. In 2020, nearly $3T had been spent on federal relief for the pandemic. In 2021, under Biden, the government spent nearly another $2T when the economy needed no further stimulus. Even former Obama economic advisor, Steve Rattner, claimed this was a reason for the high inflation we have seen recently. Injecting all the stimulus into the economy while supply chains remained indefinitely disrupted due to the COVID lockdowns around the world effectively created a massive mismatch between the sky-high consumer demand and lack of supply to fulfill that. The result, higher prices. To add to this Harvard University economist, Larry Summers, estimated that during the pandemic household incomes were roughly $25B to $30B per below what they normally would be per month. The stimulus injected through government spending was $200B per month.
Moreover, Joe Biden still tried (but fortunately failed) to champion his “Build Back Better” Act which, in its original state, would have injected another $3.5T of deficit spending into the economy. Even Democrats such as Joe Manchin could not get behind this bill and thankfully voted it down because of the inevitable inflationary effects it would’ve had. Biden even drew criticism from Jeff Bezos, who accurately stated how this bill would only end up hurting Americans more as prices would become even higher.
So, when you are scoffing at your grocery bills and cringing at the idea of having to go fill your car up with gas, take that frustration to the midterms in November and tell Biden what America really thinks. Until then, Brandon we’ll continue to claim this is “the strongest economy” and he is “changing people’s lives” while dismissing all your concerns about inflation as made up lies.
By: Macro Conservative