Posted on 04/27/2022 5:33:43 AM PDT by Red Badger
Meanwhile, excessive government entitlement spending facilitated by Federal Reserve money-printing will continue unabated.
The “only way” to tackle rampant inflation in America is to raise taxes on the middle class and eliminate tax cuts enacted by former President Donald Trump, according to Senate Majority Leader Chuck Schumer (D).
“If you wanna get rid of inflation, the only way to do it is to undo a lot of the Trump Tax Cuts and raise rates,” Schumer said during a press conference at the Capitol building on Tuesday.
“No Republican is ever going to do that, so the only way to get rid of inflation is through reconciliation,” he added, referring to a procedure whereby Democrats would force through legislation with their narrow simple majority in the Senate.
Schumer’s explanation is ignorant at best and dishonest at worst, as there are several ways to reduce inflation.
Schumer conveniently omitted that reducing the federal government’s excessive entitlement spending facilitated by the Federal Reserve’s money-printing policy known as “quantitative easing” would more efficiently reduce inflation.
In fact, just raising taxes on Americans would not actually tackle the inflation problem at all due to the sheer size of the national debt and its accompanying interest.
As economist Milton Friedman noted: “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
The Federal Reserve could raise borrowing interest rates to the current official inflation rate – 8.5% as of March – to encourage savings and reduce economic demand, but that would likely push the economy into a recession.
The Fed could also shrink its balance sheet – a process known as quantitative tightening – to reduce the money supply, which would ease inflationary pressure.
“There’s one source of inflation. The actual definition of inflation is an expansion of the money supply,” economist and EuroPacific Capital CEO Peter Schiff told Fox News host Tucker Carlson last month, adding that inflation is effectively a hidden tax imposed upon the American people because the dollar’s spending power is diminished over time.
“It’s the Federal Reserve that’s been expanding the money supply,” Schiff continued. “They’ve called it ‘quantitative easing’, but they keep creating dollars, and it’s the U.S. government that spends those dollars into circulation. And as it does that, the value of each dollar goes down. And so the price of everything you buy with dollars goes up.”
“The middle class is going to feel the inflation tax the hardest. Their wages are not going to go up nearly as much as the cost of living,” he added.
So Schumer’s proposal is to add on even more economic pain upon the middle class by hiking their taxes even more in an inflationary environment while doing nothing to address the out-of-control government spending that caused the inflation to begin with.
Watch the full Democrat press conference:
HAPPENING NOW: @SenSchumer, @SenStabenow, and @SenatorCantwell are speaking live from the Capitol. https://t.co/yjnoITOzg9
— Senate Democrats (@SenateDems) April 26, 2022
Yes, because SPENDING is totally under control.
inflation is the result of printing money
without products.
It is the results of Schumer
and his diseased RINOs
Dr Schumer: “The only way we’re going to treat your migrane, Mrs Scott, is to kill you. That’ll relieve the pressure. Medication is only temporary. This is a sure fix.”
Mrs Scott: “Thanks, I’ll get a 2nd opinion, Dr.”
Evil sob.
The far left, Marxist politicians, YOU ELECTED, are coming for your money. They’ve got millions of new ilegal foreign voters they have to feed and house. Elections do have consequences.
So, seriously, is this the result of brain damage, inferior intellect, evil intent or some other cause? I mean this question seriously. No one with even a basic understanding of the world would ever suggest such a “solution”. It is essentially like fighting fire with gasoline.
This is how you know the RATs are going to cheat in the mid term elections. Schumer is out calling to cut Trump tax cuts and RAISE taxes on the middle class.
Who is dumb enough to campaign on that? Especially when people are already having trouble with ultra high prices on gas and food.
You can say stuff like that when you are not worried about losing.
RATs will just cheat enough to hold on to the House and Senate, so don’t let the fact that there will be GOP gains fool you.
Their stupid voters will believe them.
Their stupid donors will believe them.
Their stupid media will believe them.
Their stupid pols will believe them.
Their stupid illegals will believe them.......................................
Schumer knows that the FG brings in more revenue when taxes are cut, provided jobs and productivity are allowed to grow.
Schumer and the rest don’t want the revenue, jobs or productivity.
Go ahead Chuck. Say it.
Is there an election?
Yes.
The Dems are going to cheat?
Yes.
Sunrises in the East, Film at eleven
The only way to put out a fire is to pour gasoline on it, and undo the fire dept.
The only way to stop a disease is to get a deadly shot that does not stop the disease.
Money grubbing sack of ****.
Just trying to crush the average man…
The “only way” to tackle rampant inflation in America is to raise taxes on the middle class and eliminate tax cuts enacted by former President Donald Trump, according to Senate Majority Leader Chuck Schumer (D).
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I know Chucky is lying about this; he just wanted a cheap hit at Trump’s tax reduction, which helped spur the economy. but go ahead Chucky, do it. I’m sure raising taxes on families already financially stressed to pay for exorbitant food and energy will be a real winner in the Fall mid-term election.
I distinctly remember Carter’s PRIME interest rate of 21% +++.
Schumer & Dems NEVER seem to realize SPENDING is our of control that politicians engage in.
Substantially ALL the economic “growth” under Obama was a result of the Fed maintaining near-zero interest rates throughout his entire 8 year term. They know exactly what they are doing.
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