(TheConservativeNews.org) – President Joe Biden has already been involved in numerous significant mishaps. The most obvious example is the border crisis, which erupted almost directly after his administration’s reversal of former President Donald Trump’s immigration policies. It’s only gotten worse in light of his continued failure to act. Now, another crisis with the potential to be even more serious is looming on the horizon: inflation.
Who Doesn’t Want Something for Free?
Since Democrats took the reins in Washington, DC, spending packages have been the order of the day. Some of these measures have been predictably popular with voters; the $1.9-trillion relief plan that passed in March, for example, contained a provision that added a $300 supplement to unemployment benefits. To the millions of people still out of work because of the pandemic, that obviously sounds like a good deal.
Critics have pointed out that this benefit is likely contributing to the labor shortage we’ve seen over the last number of months. However, it’s also one of the factors feeding into our growing inflation rates. When you pump more money into a country’s financial system, prices will eventually rise. It’s one of the fundamental laws of economics.
Rand Paul Weighs In
On Wednesday, August 4, Senator Rand Paul (R-KY) appeared on Newsmax to discuss the likely prospect of inflation spiraling out of control occurring if Democrats continue down their current path.
Paul accused liberal politicians of attempting to execute a “bait and switch” on voters by promising them things like free child care, stimulus checks, and subsidized education. He explained these things sound good to the average voter in the short term, resulting in gains for Democrats at the ballot box. However, after a short while, the benefits this strategy will bring for ordinary people will be canceled out by rising prices.
He invoked the theory of celebrated British economist John Maynard Keynes on the matter. Keynes hypothesized that cash injections boost economies in the short run as people spend the extra money that ends up in their pockets. There are visible signs of that effect in action now, such as our booming stock market.
What happens, though, when this honeymoon period comes to an end? According to Keynes, as quoted by Senator Paul, it won’t matter because “we’ll all be dead.”
While this might sound funny, and may have been intended as such, it offers a worrying insight into the Democrats’ strategy. Will the likes of Joe Biden or Nancy Pelosi still be running for elections when the negative effects of their spending spree are realized?
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