Steve Videtich said:
Okay, large scale shutdowns in democratic states like NY, NJ and CA never happened. Not by Biden, but by democrat leadership that has played this have wrong. And you're saying soaring gas prices and labor shortages have no effect? All that money that tit said was needed to jumpstart the economy, how much of it actually went to issues directly related to the problem? Maybe 10% if that? That's a lot of money forced into the economy that adds to inflation.
I agree, inflation was going to happen. But, it hasn't had to last as long or be as bad as is been. He's made it worse.
Shutdowns happened in major industries nationwide. That wasn't a phenomenon limited to blue states.
And sure gas prices have an effect but gas prices aren't a one-trick pony. The US has very little to do with global market forces on petroleum or OPEC output, and Biden hasn't implemented policies that curtail current production of oil and gas. Those are primary drivers of gas prices. He has made noise about curtailing future exploration on federal land and he killed the Keystone permit, which gets baked into the market some. I don't think those have had the same effect as the other gas market inputs, especially since the market also bakes in the probability of some of these policy impacts potentially changing depending on who lands in office in 24.
When your economy shrinks 31% in a quarter like ours did in Q2 of 20, talking about inflation is like worrying about a sprained ankle when your hair's on fire.
Fiscal policy isn't a neurosurgeon's scalpel. It's not precise action with highly predictable outcomes. It's a sledgehammer. And the biggest risk was not swinging it hard enough.
We'd have an even bigger problem on our hands if we fell into recession in the midst of a pandemic than we do fighting inflationary pressure. It's not to say it's not a problem; it is. It appears we avoided recession and have some economic momentum; now use the monetary policy and fiscal policy tools available to you to try to pump the brakes a little and bring inflation back in check.