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.”

 

Biden’s inflation crunch: Too much shopping — even at beach (chron.com)

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.

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By Miguel.GFZ

Semi-retired like Vito Corleone before the heart attack. Consiglieri to J.Kb and AWA. I lived in a Gun Control Paradise: It sucked and got people killed. I do believe that Freedom scares the political elites.

5 thoughts on “This is what a Propaganda Machine looks like: Inflation not the fault of Biden but Americans.”
  1. Yeah, cut back on food and gasoline, that’ll win friends and influence voters. “University of Michigan Economist”? Damn, did she get her degree at the Karl Marx University of Economics (yes, that’s really a name used for Corvinus University of Budapest; between 1953 and 1991).

  2. Huh, and here I thought that people buying stuff was how the economy was supposed to work. Silly me, we’re supposed to crash the economy the other direction.

    Don’t worry Jhao Bribe’m, pretty soon, people won’t be able to afford to buy stuff, so they’ll stop “buying” stuff.

  3. Democrats: “Stop buying so much! Save!”

    Also Democrats: “Government needs to confiscate savings to create equity and provide for our voters, er, the needy!”

  4. Converting liquid assets into products is the market responding to inflation. Why should a consumer hold onto that dollar if it’ll buy only sixty cents worth of next year’s goods?

    This so-called economist doesn’t know his horse from a cart.

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