The Economy: Joe Biden vs. Jimmy Carter – Jimmy Wins?
A new CNN poll has found that Biden has a 44% approval rating on his economic rating, versus a 55% disapproval. In fact, an average of polls in December give Biden an average of -13% net approval on his economic performance. This was worse than any of his predecessors. Jimmy Carter’s worst approval rating was a net -8%.
So let’s see if we can understand why. Jimmy Carters’s economy experienced massive inflation because of an oil shock that started when Iranian oil workers went on strike. It hit 11% in 1979 and nearly 14% in 1980. He was not a good president (in my opinion) but this was largely out of his control.
Biden’s inflation and other economic problems are of his own making. We no longer are energy self-sufficient, specifically because of Biden’s initial executive orders regarding oil production in the U.S. Biden’s passage of expensive and unnecessary spending packages ensures that inflation will be sustained and much worse.
And worst of all, the excess payments to workers to keep them home and away from COVID has produced a massive shortage of labor, creating a loss of productivity, which in turn means that there are fewer products to be bought. Inflation will keep going up.
Our supply chain problems are a direct result of political decisions, they were not an imbalance that no one foresaw. In fact, pretty much everyone saw this coming.
The Biden Administration, and Janet Yellen, Secretary of the Treasury and former Chairman of the Federal Reserve are claiming that inflation can be controlled. Yellen is planning interest rate increases in the next year, which is the normal method to control inflation. The economy slows, people buy less, and the demand for goods slows to the point where the prices don’t rise.
The problem however is that the national debt is now so large that any increase in interest rate will put a massive burden on the Federal Government and push our deficit spending beyond our ability to raise revenues from taxes. This will not only not control inflation, but it will also propel inflation rates higher. And our economy is not booming, our productive resources are not engaged, and these artificially suppressive productive resources are demanding goods that are caught in transportation delays.
Ladies and Gentlemen, we are screwed.