Stagflation is Here as Bidenomics Bites
US GDP contracted by 1.4% in the first quarter of 2022, while inflation hit close to 10% at the same time. A major recession with high inflation seems inevitable.
Bidenomics is worse than Carterism. In the East Valley, the effects of Bidenomics are visible everywhere. Empty car lots, with sky high car prices have become commonplace. Groceries seem to post almost daily price increases. Nearly every business in town has "Hiring" signs. In normal times this would indicate a healthy economy, but thanks to Bidenomics, it is low labor force participation that causes this, not rapid growth. Indeed, today fewer people are in the labor force than 2 years ago, despite a larger overall population, "helped" in part by massive Biden-Harris encouraged and facilitated illegal immigration over the open southern border.
A record of utter failure, incompetence and downright malevolence
Joe Biden took office in January of 2021:
He and his cabal immediately attacked the energy industry, lowering the supply of fuel and energy, making it more expensive.
Biden and his cabal printed and borrowed Trillions of Dollars to increase demand, in the process devaluing the US Dollar.
Some of this stimulus was race based, discriminating against non-blacks.
They encouraged lockdowns and mask mandates, thereby lowering the output of US factories and businesses.
They instituted a federal vaccine mandate affecting everyone working in a company with over 100 workers, which pushed some workers out of the workforce, lowering labor supply.
Biden extended the Trump student loan moratorium several times and is now considering student loan forgiveness, meaning putting tax payers on the hook to the tune of more than $1 Trillion, while inflation is almost 10%.
Lockdownerism and Covid hysteria in other countries have contributed, notably in Asia. Some countries there shut down their economies without any regards to the consequences, leading to severe slow downs and shortages, some of which affect the United States, e.g. the computer chip shortage.
Biden's weakness, fecklessness and corruption have contributed to the Russia-Ukraine war by emboldening Putin. This war added to the already rapid oil price increases. It also negatively affects the supply of other raw materials, food and fertilizer.
The Fed is in a hole
The Federal Reserve is now in an impossible position. Waiting too long to react to inflation taking off just after Biden took office, the Fed now faces high inflation with negative growth, without the ability to stimulate via lower interest rates, because they already are near zero. Instead the Fed needs to raise rates to get inflation under control. This should lead to a more severe recession.
Solutions for the economic problems are very simple and quick. Essentially one has to do the opposite of what Biden and his cabal have been doing:
Get Biden's boot off the neck of the energy industry
Stop printing money
Stop encouraging people not to work
Let people pay down their debt themselves
Deregulate, deregulate some more, and then do some more deregulation