Posted on 03/17/2023 7:25:27 AM PDT by SeekAndFind
The insanity of the COVID-19 shutdowns was a gift that just keeps giving. No one should have been shocked to discover that throwing people out of work en masse (Mistake #1) crashes economies. But Democrats were able to ride the chaos into office, and they used their Washington power to hand out grants and cheap loans willy-nilly, “rescuing” us by flooding the economy with extra trillions of dollars unanchored to anything of any particular value (Mistake #2). No one should have been shocked to see the rampant inflation that ensued and still torments all but the very wealthy today.
Traditionally, the Federal Reserve System raises interest rates to tame inflation by tightening the money supply back up. The downside is that this move also suppresses growth and can sometimes tip an already weak economy into a recession. The dream is always to achieve a “soft landing” after a major economic upset, in which inflation comes down without the higher rates crushing the GDP. But most of the time, this remains just a dream. And that is proving to be the case now.
For one thing, employment levels have yet to return to pre-shutdown levels. “President” Biden can brag about low unemployment all he wants, but the truth is that fewer working-age people bother to work than before — just 62.5%. This chart from the U.S. Bureau of Labor Statistics tells the story:
The implacable rate-raising by the Fed has prevented businesses from investing and growing. Coupled with persistent inflation, some of them even have trouble making payroll. Steadily climbing rates also played a role in the bank collapse rollercoaster we’ve been riding since last week.
(Excerpt) Read more at pjmedia.com ...
But Biden said that the economy is going...somewhere.
This ain’t no upwardly mobile freeway....oh no, this is The Road to Hell.
“...But Biden said that the economy is going...somewhere....
FJB
The Liar en Thief is totally despicable.....a pedoPIG.
unanchored to anything of any particular value
Right there is the essence of wealth from the Wealth of Nations.
the definition of wealth is it generates more wealth.
Consumption activity like wokeness does not generate wealth, it consumes................................
Interesting highest cd rates are for 18 months from now. Something going to happen then?
But Comrade Dr Fow-Chi said "Two weeks to flatten the curve"!
This reinforces my view that the underlying economic forces influencing our situation are primarily deflationary in nature, not inflationary.
The labor force participation rate isn't so low because so many able-bodied adults are sitting around doing nothing. The definition of "working-age people" in those U.S. Bureau of Labor statistics includes everyone over the age of 16 who is not institutionalized. The biggest factor in the low labor force participation rates is the RETIREMENT of older Americans on a very large scale.
This is a demographic issue, first and foremost.
They didn’t “ride into office, the bloody well STOLE the hell out of it and everyone knows it.
It’s called a coup.
Please see my tagline.
The bush/mccain depression level event is finally playing itself out....
The lesson learned from the great depression is:
Don’t try to stop or fix it.
Do nothing.
Let it finish itself out.
It’s gonna hurt, but we will come out on the other side stronger than ever
RE: It’s called a coup.
I’m afraid, that with the experience this country just had in two election cycles ( 2020 and 2022 ), this is going to be the new normal.
No one had the guts to water the tree, so now the tree is dead.
The reflex is for government to jam its fat fingers into the situation.
The solution is for government to keep its fat fingers out of it.
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