Senator Bill Hagerty (R-Tennessee) took to Twitter to express his views on the persistently high inflation stemming from economic policies under the Biden administration, stating, “It’s a consequence of their misguided policies. Americans deserve better than soaring prices, diminished purchasing power, and shrinking savings.”
The term “transitory,” which signifies something of short-lived or temporary nature, has come under scrutiny due to a noteworthy trend. For 29 consecutive months, the Bureau of Labor Statistics has reported inflation rates exceeding the Federal Reserve’s stated target of 2 percent.
During this period, inflation reached its highest levels in four decades. Coinciding with this, the Biden administration and congressional Democrats have advanced an agenda encompassing government spending, taxation, and regulatory measures. A notable legislative component of this agenda is the paradoxically named “Inflation Reduction Act.”
The Bureau of Labor Statistics records inflation as a year-over-year increase in the prices of goods and services. The latest inflation figure, as of July 2023, stands at 3.2 percent. This indicates that the cost of the same goods and services has risen by 3.2 percent since July 2022.
Inflation can result from an excess of money chasing too few goods and services, leading to reduced purchasing power. In this scenario, a dollar now buys 3.2 percent less than it did a year ago, impacting savings as more funds are required for purchases.
President Joe Biden and the Democratic Congress have not attempted to implement a “real solution” to the economic challenges confronting the United States. Alternatives could have included reducing wasteful federal government spending, but instead, there has been a push to increase spending in a high-inflation environment.
Another option could have been lowering taxes to free up more funds for both employees and employers, but the emphasis has been on raising taxes. Furthermore, efforts could have been made to streamline regulations that hinder production and consumption, but instead, there have been endeavors to impose more intricate regulations on the U.S. economy.
Regardless of how “Bidenomics” is characterized, it has been assessed as a complete and unmitigated economic failure. What proves effective is an economy that can function freely. Innovators, inventors, entrepreneurs, business owners, and all contributors to the U.S. economy thrive when the government has minimal involvement in their creative and productive endeavors.
