In 1971, President Richard Nixon declared that he had embraced Keynesian economics.īy the middle of the decade, his successor, President Gerald Ford, was struggling – and failing – to 'WIN' (i.e., 'Whip Inflation Now') the battle against rising inflation. If common sense isn't enough to confirm this result, there is ample historical evidence. Simply put, increasing demand by infusing more money into an inflating economy results in hyper-inflation rather than economic prosperity. Those who have, recall all too well the ruinous consequences of applying failed Keynesian demand-side fiscal policies to a sluggish economy beset by rising inflation. Most Americans have never lived through anything like the current inflationary surge. The inflation Kraken was released in March and restraining it will take more than simply preventing the Biden administration from doing additional economic harm. The Bureau of Labor Statistics' actual report on inflation showed that in December inflation hit 7 percent for 2021 – the highest inflation rate this country has seen in 40 years. The longer we wait to seriously address inflation, labor shortages, and supply chain problems, the worse the threat of an inevitable and deep recession becomes.Ĭase in point: On Wednesday Biden, claimed December's inflation report showed 'a meaningful reduction in headline inflation over last month' demonstrating that 'we are making progress in slowing the rate of price increases.' If you are a working or middle-class American that may have surprised you. Like Carter, the Biden administration is acting as though it can ignore fundamental economic problems forever. So, why is the Biden administration so determined to ignore both the cause of Carter's economic failure and President Ronald Reagan's very successful formula for reversing it?Ībsent such an economic awakening, it's going to be a tough three years. As we emerge from the pandemic, Joe Biden's economic policy bungling is driving America into a brick wall of malaise and stagflation.įor those of us who lived through it, the comparisons to Jimmy Carter's failed presidency are hard to ignore.