As the country is in the grip of runaway inflation especially on gas and food all our politicians are scrambling to look for answers ahead of the upcoming elections….and there are many solutions none of which will do much for us mere mortals.
The GOP has some big ideas…..
House Republicans gathered this week for an off-site hearing denouncing the Biden administration’s economic and energy agenda, blaming the president for record-high inflation and gas prices while proposing solutions that largely focused on reining in government spending and expanding domestic energy manufacturing.
Led by Rep. Andy Biggs (R-AZ), members of Congress heard from a panel of witnesses including former Trump administration Energy Secretary Rick Perry and Club for Growth co-founder Stephen Moore at an event held Tuesday at the Heritage Foundation.
For an hour and a half, Republicans considered proposals ranging from dramatically cutting taxes and government spending, enacting work requirements for social welfare programs, and abolishing “renewable energy mandates” that restrict the production of oil and other fossil fuels.
Although some policy disagreements among them were evident, the event’s attendees were unified in their harsh criticisms of President Joe Biden, fixing the blame squarely on his administration for the country’s economic woes.
“With gasoline at $5 per gallon and inflation at nearly 9% year over year, we need to hold the Biden administration accountable,” Biggs argued. “With Democrats in charge of the House, Senate, and the White House, they are the ones who produced this problem.”
As pertaining to a ‘gas holiday’….this seems to be popular with both parties….apparently the American voter is so stupid that paying $3 a gallon for gas will make them somehow comfortable….to me this is just a feel good solution that will do little to ease the economic pain of us peasants.
Bidenism in a nutshell: After blasting oil companies for price gouging, Biden announced a suspension of the federal gas tax for three months, a move which will do almost nothing to reduce prices at the pump but will almost certainly provide an even bigger boost to oil company profits.
The site fivethirtyeight.com takes a closer look at the idea of a gas holiday……
Earlier this week President Biden asked Congress to temporarily suspend collection of federal gas and diesel taxes for three months as a way to relieve pressure on Americans as national gas prices rise to $5 a gallon. If the price keeps going up, it could top highs not seen since the summer of 2008. High gas prices are also helping to drive overall inflation, which reached 8.6 percent as of May.
It’s no surprise, then, that Biden is responding to pressure to do something — anything — about gas prices. As plenty of people have pointed out, the cost per gallon is displayed on giant signs everyone can see. Transportation and groceries are necessities that are purchased weekly or even daily, which means Americans feel these changes in a visible, visceral way. It also gets at why they’re so important politically, especially as surveys show that Americans are adjusting their budgets.
Nearly three-quarters of Americans say they’ve altered their spending habits to save money because of inflation, according to a Morning Consult poll released this week. More than half, 53 percent, say they’ve changed their eating and drinking habits. Families are eating out less often, cutting back on meat and forgoing alcohol and organic produce.
A similar poll from last month found that middle-income households were spending slightly less on groceries overall and shifting to less expensive options, like store brands instead of name brands. (Higher-income families were just spending more.)
So far none of the solutions being offered by either party will do the trick at easing our economic pain…..at least that is my opinion.
There are answers but they would flying in the face of the oligarchs that have bought a Congress and that will NEVER happen in my lifetime…..the Congress gets paid too well to actually work for the people that send them to DC.
As I have stated inflation is eating away at the fiber of this country….its people…..and we should learn all we can about this deadly situation….
The focus of the US media and economists for the past several months has been increasingly on inflation. In recent weeks, however, US policymakers awoke as well to the realization that inflation is chronic, firmly embedded, and growing threat to the immediate future of the US economy.
A qualitative ‘threshold of awareness’ was reached this past week when the US central bank, the Federal Reserve, accelerated its pace of rate hikes by 75 basis points—purportedly to bring the rate of price hikes under control. Whether the Fed can succeed in taming inflation and do so without precipitating a recession remains to be seen but is highly unlikely. Taming inflation without provoking a recession is thus the central economic question for the remainder of 2022.
Clearly some think this is possible—i.e. that further rate hikes will moderate the pace of inflation without driving the real economy into recession and result in what is called a ‘soft landing’. Clearly the Fed and the Biden administration believe that will happen. But a growing chorus of even mainstream economists and bank research departments don’t think so. Almost daily new forecasts by global banks and analysts appear indicating recession is more than 50-50 likely—and arriving sooner in late 2022 than in 2023.
Hard answers are needed……weak responses will be the norm.
I Read, I Write, You Know
“lego ergo scribo”