(TheDailyHorn.com) – Inflation soared to rates not seen in decades over the last few months. Not only are gasoline prices higher, so too is virtually everything else Americans purchase.
As if that weren’t bad enough, retailers are having a difficult time getting supplies in stock ahead of the Christmas season. For months, the Biden administration said the problem was transitory and blamed the growing economic crisis on the pandemic instead of government spending and bad policies. Among the officials spinning this narrative is Treasury Secretary Janet Yellen.
On Sunday, November 14, Yellen said when the economy recovers from COVID and people return to their normal level of pre-pandemic activities, things will settle down, and inflation will diminish. The Treasury secretary added that once people start spending more on services that require face-to-face interactions, demand for products will go down, and prices will follow.
"What a lie, it was Biden Admn!" https://t.co/OunYKN38Di
— Sherman Tank (@ShermanTank17) November 15, 2021
To many, the answer provided by Yellen and the administration defies logic. Somehow, the administration keeps pushing the notion that if everyone gets vaccinated, inflation will go away. What Yellen and others don’t say is that there’s a direct correlation between inflation and government spending.
Between April 2020 and November 2021, Congress authorized approximately $8 trillion in unprecedented spending, and yet the economy is going in the wrong direction. In the 1930s, 1960s, and 1970s, massive government spending hikes brought about high inflation and backward economic growth. In the 1980s and 1990s, the federal government shrank one-fifth of a percent, and the economy grew at its fastest rate in US history.
So, what’s really driving inflation?
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