Biden Economic Adviser: Inflation Crisis Will Be Solved by More Government Spending
Cecilia Rouse responded to questions on the inflation
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Joe Biden has persistently claimed there is no threat of recession because the US jobs market still “strong.”
But the White House failed to acknowledge the fact that covid stimulus spending artificially drove up retail demand, which created a temporary spike in jobs.
If they admitted that layoffs where about to ramp up due to there being no covid checks, would Biden be able to make such claims?
Biden economic adviser Cecilia Rouse responded to questions on the Inflation situation, but gave nothing more than propaganda.
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Just last year, the Biden administration that was still saying that inflation was “transitory” despite all evidence agaisnt it.
As Zerohedge noted:
One of the key obstacles to “Build Back Better” is the reality of high inflation. If Biden gets what he wants, which is at bottom an infrastructure renewal plan similar to the New Deal plan under FDR during the Great Depression. Whether or not the New Deal actually saved the US economy is up for debate (the destruction caused by WWII left the US as one of the only major manufacturing nations still intact, and this was the main reason for the explosion in wealth and the national escape from poverty), but even if it made a difference the circumstances today are not the same.
The problem is that FDR was facing a deflationary crash in which the US dollar remained viable and strong. Today, we are dealing with a stagflationary crash in which price inflation is rampant and the dollar's buying power is growing ever weaker. One of the main reasons for this inflation is due to government spending and massive Federal Reserve stimulus created from thin air.
The US national debt when Barack Obama and Joe Biden entered office in 2008 was around $10 trillion. By the time Obama and Biden left in 2016, the national debt had doubled to $20 trillion. That's a 100% increase in only 8 years. Since 2016 the national debt has expanded to around $30 trillion. The Federal Reserve created over $6 trillion in a single year in 2020 to supply the government with currency for covid checks and PPP loans during the lockdowns. To be sure, the Federal Reserve is happy to continue destroying the dollar, but exponential government spending gives them the excuse to do it.
This is not even counting the spending required for long term government programs such as medicare and social security. And yes, programs like Social Security DO add to US debt and the Federal deficit and anyone that tells you otherwise is lying. Just because something is “off budget” does not mean it's not adding debt.
Back in March, Nancy Pelosi claimed America needed more spending in order to deal with inflation.
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But it is common knowledge that government spending always creates more national debt and inflation when it relies on money printing.
The narrative that government spending is a “good thing” is part of a bigger propaganda effort.
Cecilia Rouse argued that:
"The president is focused on inflation and in fact, Build Back Better is a long-run investment to increase economic capacity so that we're better able to address inflation. Parts of Build Back Better include addressing costs, such as prescription drugs."
"It includes making investments to make the transition to clean energy which we know we need to be making as well," she added.
"So that's not the kind of dollars that is stimulus, it's investment, and it's the kind of investments that actually pay for themselves over time. So that's smart economic policy right now..."
However, increasing economic “capacity” does not address dollar devaluation, creating projects from nothing in order to encourage spending does not address too many dollars chasing too few goods if you have to print even MORE dollars to make those infrastructure projects possible.
Last week, Biden argued that it ws "bizarre" to suggest his policies, such as his multi-trillion-dollar spending plans, caused inflation to skyrocket.
As Neon Nettle reported:
Biden made the comments in a Thursday interview with the Associated Press.
"The need for mental health in America, it has skyrocketed, because people have seen everything upset,” Biden said.
"Everything they’ve counted on upset."
"But most of it’s the consequence of what’s happened, what happened as a consequence of the COVID crisis.”
Americans faced more economic bad news on Thursday when the stock market continued its collapse, but Biden claimed that it was unlikely to mean a recession was coming.
