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It's obvious Biden and congress are not primarily responsible for inflation, that's a combination of macro economic factors as well as the Federal Reserve's dra
by nightski 4y ago
It's obvious Biden and congress are not primarily responsible for inflation, that's a combination of macro economic factors as well as the Federal Reserve's drastic actions.
But not only did the COVID stimulus continue once the dems took control, they continued to pass multi-trillion dollar bills (Infrastructure & Inflation Reduction Act) along with a half trillion dollar student loan forgiveness. It's this aggressive spending, while inflation was already rising, that is giving them that reputation.
I'm not taking sides here nor do I want anything to do with Trump. Just laying it out how I see it.
- ericmay 4y agoSpending can be an investment too, so I think broadly characterizing them as spending bills is misleading which makes the characterization of "Democrat inflation" also misleading. An easy example is the national highway system which was a spending bill, yet we reaped massive (although problematic in my opinion) economic gain from doing so. I'm conflicted on student loan forgiveness, but I don't see it as any worse than numerous corporate subsidies and bailouts, and is likely a better use of money than what we normally spend. If this forgiveness bill proceeds forward as it is likely to do, I think coupling it with a measured withdrawal of the federal government from guaranteeing student loans and also allowing student loans to be discharged in bankruptcy would be ideal.
- nightski 4y agoExcept in this case "investment" is more like buying a stock at it's peak maxing out your margin with a variable interest rate in a rising interest rate environment.