Biden faces a delicate trade-off as he tries to help his fellow Democrats in the November elections. He needs U.S. consumers to pull back just enough so inflation eases, but not so much that the economy risks plunging into a recession.
University of Michigan economist Betsey Stevenson, a former adviser to the Obama White House, said it would be helpful if Americans reduced their spending. This would lessen demand and allow supplies to catch up, easing pressure on the Federal Reserve to lower inflation through higher short-term interest rates.
“Fundamentally, the problem right now is the opposite of stagflation — it’s regular inflation driven by an economy operating at or even above its potential, with consumer demand outstripping the capacity of the economy,” Stevenson said. “I’m hoping that people stop digging into their savings and cut spending a little — not enough to slow the economy, but enough to slow the price increases.”
You effing ingrate! Stop buying gas and food and baby formula and stuff! You are making the President and the Democrats look bad after all they have done for you!
These people are not taking crazy pills, they are shooting the stuff up directly into their bloodstreams. There are two way to “reduce” consumption: By imposing forceful restrictions on sales (rationing) or reducing consumers. Both have been tried before in certain countries where Karl Marx was the popular economic thinking and I am sure I do not need to tell you what were the results.