Biden Says Costs Dropping - They're Not!

 

https://twitter.com/moxlosllc/status/1679625503316099074?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

Bidenflation Continues

Prices continue to increase more under Biden than it did under either of his predecessors. 

https://twitter.com/moxlosllc/status/1668746581032554497?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

Biden's Wage Cuts

While real earnings increased more under Trump than Obama, real wages under Biden continue to stagnate.

https://twitter.com/moxlosllc/status/1668746354699411458?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

 

Bidenflation Continues

Joe is claiming he is doing a great job fighting inflation.  This is intellectually dishonest. He has only been doing a less bad job.  The RATE of price increases in his last 10 months may be lower than his first 17 months, but it continues to be HIGHER with Biden than his predecessors.

https://twitter.com/moxlosllc/status/1656309802690027520?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

Biden’s IRA a BUST

Joe Biden’s Inflation Reduction Act 

No meaningful affect on inflation (1)

No meaningful impact on climate (2)

Now we find it increases deficits $522 billion, not decrease as promise.

September 13, 2022  

Biden: “Inflation Reduction Act will reduce the deficit by 300 billion.” (Though not clear where he pulled that number from because the CBO scored the law with the $238 billion deficit reduction.)

April 27, 2023

The CBO has revised their estimate based on all the changes Biden administration is sneaking into the law. Golden Sachs has done an analysis. And the Penn Wharton Budget Model has provided their analysis. The spending of the IRA is revised from $285 billion to $1.045 TRILLION, an increase of $760 billion. (3)

Net Result

Deficit increase of $522 billion NOT the $238 billion decrease promised. 

https://twitter.com/moxlosllc/status/1651723241403056130?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

(1) https://budgetmodel.wharton.upenn.edu/issues/2022/8/12/senate-passed-inflation-reduction-act

(2) 

(3) https://budgetmodel.wharton.upenn.edu/estimates/2023/4/27/update-cost-climate-and-energy-inflation-reduction-act

Biden’s Fib Gets Bigger

I previously posted (1) that Biden‘s Inflation Reduction Act was a big lie and that it will not reduce inflation, it will hurt the economy, and it will not even help the climate.

I was wrong.

A recent analysis by Goldman Sachs (2) says that the Inflation Reduction Act will actually cost $800,000,000,000, that is 800 billion,  more than Biden said it would. 

https://twitter.com/moxlosllc/status/1640001479334584322?s=46&t=Y4fVsDnz2q8uZ3VNKeco4A

(1) https://moxlosllc.blogspot.com/2022/08/inflation-reduction-act-big-lie.html

(2) https://www.wsj.com/articles/inflation-reduction-act-subsidies-cost-goldman-sachs-report-5623cd29

Looming Fiscal Disaster

While the conclusion is that a combination of dramatic tax increases and/or dramatic spending cuts are absolutely going to happen, there is a third factor that is also almost certain: Inflation which reduces the relative value of the debt and means higher interest rates. 

An analysis from economists at the University of Pennsylvania's Wharton School found that American fiscal policy is in "permanent imbalance as current debt plus projected future spending outstrips future tax revenue," demanding a substantial decrease in expenditures or a substantial rise in revenues.

The economists forecasted that the fiscal imbalance would equal 7% of the present value of all future gross domestic product over the next 75 years. Restoring order to the federal budget would require across-the-board cuts to programs such as Social Security, Medicare, and Medicaid, across-the-board increases to payroll taxes, individual taxes, and business taxes, or some combination of tax hikes and spending cuts.

https://budgetmodel.wharton.upenn.edu/issues/2022/12/19/long-term-implications-of-current-budget-policies

Consumer Price Increases Still High

CPI, Consumer Price Index, released today, shows that while the rate of price increases has slowed down, we are still seeing significantly higher price increases than were seen in the previous two administrations.

Producer Price Increases still a problem

PPIFIS - Producer Price Index by Commodity: Final Demand was released today by FRED (Federal Reserve Bank of St. Louis).

An increase of 0.3% from previous month.

Inflation is still a problem.deral Reserve Bank of St. Louis