5.18 Are President Biden's Policies Causing Inflation?

Most people define inflation as the increase in the price of the goods that they buy and that's the definition that will be used here even though according to the economist Peter Schiff, the correct definition of inflation is simply increasing the amount of printed or coin money.  Increasing the amount of money doesn't increase it's worth, the worth of the total amount of money a country has depends on the worth of the total amount of goods it can sell. The worth or purchasing of a countries currency is the ratio of the amount of sellable goods the country produces divided by the number of country dollars.  Doubling the number of the countrys dollars, without changing the amount of goods the country produces, halves the purchasing power of the countries dollars.  What if the printed money is used to pay to rebuild buildings damaged by a hurricane or earthquake or other disaster?  There will still be inflation even though the money is producing useful goods.  The reason for that is the country isn't selling new buildings, but is rebuilding what it already has.

The Biden administration blames the rising cost of goods on the Covid pandemic and greedy businesses and Russia and OPEC for not producing more oil.  The pandemic did cause inflation because of deaths of productive people, lockdowns which prevented people from working, and money printed to help people who lost their jobs. 

The accusation that businesses who raise the prices of what they sell are greedy is a way the Biden administration deflects blame for their own guilt in causing inflation.  If as the Biden administration says, businesses who raise their prices are greedy, than why do they just raise them now, why didn't they raise them before?  Businesses are raising their prices for their goods because their costs are going up. 

 In Biblical times a Jewish priest would lay the sins of the people on a goat and then send it out into the wilderness.  People may have believed that when he did that God would no longer hold them responsible for their sins.  Today scapegoating refers to blaming someone for one's own sins or the sins of someone else. 

Here is a video clip in which Biden scapegoats others and the pandemic for problems that he is in large part responsible for.  The reporter says inflation is the highest its been in 13 years but it's even higher as I write this (jan 16 2022).  In the video Biden says prices are up because Covid is affecting the supply chain.  The supply chain is all the people and steps involved in getting a product to the consumer.  If lots of people are sick they can't drive the trucks to get people the things they want.

One reason that the cost of everything is going up because the cost of energy is going up and the cost of fossil fuels is going up.  Why is that happening?  Because  burning fossil fuels gives off carbon dioxide and president Biden is determined to end all carbon dioxide emissions by the United States by reducing the production of fossil fuels.  Perhaps he believes that carbon dioxide emissions will bring about climate catastrophe, or perhaps he just wants the votes of the people who believe it or perhaps both.  There is an entire section of lessons on this web site about why he is wrong about carbon dioxide.  President Biden has shut down pipelines and reduced permits to oil companies to drill for oil so the result is there is less oil and OPEC and Russia can charge high prices for it.  When the price of oil and gas goes up the price of everything goes up.  Energy heats our supermarkets, energy moves trucks that move the food to our supermarkets.  Store owners have to charge more for food in order to get enough money to pay their bills.  The same applies to other goods as well.

In a press conference in May 2022, following his meeting with Prime Minister Fumio Kishida in Japan, President Biden praised the escalating price of gasoline as a positive step toward realizing the Democratic Party’s dream of enacting the Green New Deal.

Here is an excerpt of a video by the American Petroleum Institute (the API) about how important energy is and how president Biden's policies are driving up the costs of energy.  The speaker talks about line 5 which is a pipeline that delivers oil from Canada to the United States that the Biden administration was considering closing but had enough sense in November 2021 not to.

 

Larry Kudlow talks about how Biden is causing inflation in the video below.

 

Fossil Fuels are not only important for energy.  Plastics are made out of fossil fuels.  Steve Forbes, in the video below talks about how important products made from fossil fuels are.  The cost of all those products go up when the cost of fossil fuels go up.

 


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There are other policies of the Biden Administration that are causing inflation. 

One of those policies is allowing unlimited immigration across our southern border.  To find out how this causes inflation

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