Rich, Welsh| Former Treasury Secretary Larry Summers said on CNN’s “State of the Union” on Sunday that “banana Republicans” and the events of January 6, 2021 contributed to the inflation that is ravaging our economy and draining the pockets of the American people.
Summers continued, “We should focus on what’s important, not raising input prices for American producers, which is what a lot of those tariffs do.” We should instead focus on issues that allow key technologies to be leaked to China and other countries. We should finally enact legislation, ideally bipartisan legislation, to raise the Trump tax cuts, tax corporations like the rest of the world, and slash prescription medicine prices. All of this would contribute to a reduction in inflation. There are steps that we can take.
To begin with, the Trump/Republican tax cuts are responsible for the strongest economy in both our country’s and the world’s history. Larry Summers is well aware of the situation. Raising corporate rates today would be a tremendous mistake because it will drive up costs for goods and services even more than Biden inflation, supply chain mismanagement, wasteful government spending, and continuing to pay people to remain at home and not work.
Summers said, “If I can step out of my region for a second.” By arguing that what happened on January 6 was nothing or OK, the banana Republicans, in my opinion, are destroying the essential validity of our country’s institutions. This, in turn, fuels inflation, because why trust a country’s currency if you can’t trust its government? Lowering the temperature in Washington is vital, in my opinion.
By acknowledging behavior that straddles the border between reasonable and decency, we give the Fed the breathing room it need. The deficit in the budget has been minimized. We are able to reduce costs by employing prescription drugs. We are capable of doing this work. If we’re serious about tackling the task.” This is why I don’t believe Summers is telling the truth. For more than a year, he warned the Biden administration and the Federal Reserve Bank that reckless stimulus spending would lead to enormous inflation.
Summers questioned the size of President Biden’s $1.9 trillion covid-relief proposal, which Congress passed the following month, and wrote, “There is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation.” It now stands at 7.9 percent. “Larry deserves credit for seeing the threat of inflation,” said Austan Goolsbee, a University of Chicago economist who worked in the Obama administration. “The only people who said so at the start of 2021 were the same people who had prophesied hyperinflation every year since 2008.”
Larry seems to have been sent to the woodshed or a re-education camp and informed what’s what, since now he’s blaming the Republicans for, get this, moaning about the government so much that people lose faith in it, which leads to inflation, and he even tossed in a little January 6 in there.
So, when the Democrats put up the whole Russian connection lie, why didn’t we have inflation? Every day for the past four years, Democrats have said that the American people have lost faith in the government, although Trump has delivered some impressive economic results.
If you want to speak about losing faith in government, consider the Russia Russia Russia hoax, which was made up entirely by Democrats in order to delegitimize Trump. And don’t forget that COVID lockdowns and requirements were imposed by Democrat mayors and governors, including vaccine mandates that not only didn’t work, but also physically damaged many individuals, according to CDC statistics. Then there was the 2020 election fraud fiasco, which they and their boot-licking sycophants in the disinformation news media continue to lie about to this day.
I believe that the actions of Democrats would have resulted in a complete lack of trust in the government, but we didn’t have high inflation or any of the other problems we have now until Joe Biden and the Democrats in Congress began spending like drunken sailors.