Inflation is a large issue prominent in countries today due to the pandemic, newly established policies and more. It affects many and has brought up financial crises and poor fund mismanaging all across the world. Yet, President Joe Biden found a way to handle this issue.
Once an insult, the American President has fully embraced ‘Bidenomics’ as a pathway to leverage inflation in the country, empower workers to strive for their best, and to help promote small businesses. However, an Associated Press’ poll shows that only 33% of American citizens actually agree with his idea due to concerns.
Biden’s Spending Habit
Even before he took office, America was already suffering from severe inflation and unemployment thanks to sudden economic growth and changes post-pandemic. Coupled with Republicans spending the COVID-19 funds reserved $900 Billion to win over elections in Georgia, before Biden’s inauguration.
The President also spent $1.9 Trillion for the American Rescue Plan, causing short-term spending. Due to this effect, Federal Reserve Chairman Jerome Powell stepped forward to finance all of Biden’s spending. Yet, he still continued to spend more funds, reportedly having nearly $7 Trillion in debt. Which is considered one of the highest debt-to-GDP ratios since World War II.
Since he became the President of America, the cost of items rose to 15%. Increasing further tension between the Fed monetary policy and the White House’s fiscal policy. Despite all of that, Biden’s agenda and regulations have managed to lower the annual household cost to just $10,000 per year. Additionally, consumer price inflation decreased from 9.2% to just 4%.
In tackling inflation, it’s important to understand the ever changing economic landscape of our world. Even the wisest of decisions can lead to damaging consequences and potential arising issues that will only further hurt the economic growth and its people.
Source: Washington Examiner
