Commentary
The Biden administration’s plans to reduce inflation will make it worse even though it has accurately identified inflation as the greatest threat facing the United States.
“The President’s top economic priority is tackling inflation and reducing costs for American families,” according to a White House statement released on May 10.
In 2021, the budget deficit shrank by $350 billion. It is expected to decrease by another trillion by October; however, this is not due to any heroic actions on the part of the Biden administration. This reduction is the result of the phasing-out of pandemic-era government spending.
While decreasing the deficit is a good idea, a deficit does not cause inflation. Inflation is caused by massive government borrowing, money printing, and injecting cash into the economy. Government transfers for enhanced unemployment, child credits, and other social programs have put the nation on a path of high inflation and a sluggish economy….