{"id":1588013,"date":"2022-08-04T07:17:34","date_gmt":"2022-08-04T11:17:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1588013"},"modified":"2022-08-04T07:18:02","modified_gmt":"2022-08-04T11:18:02","slug":"without-fiscal-responsibility-u-s-headed-for-a-worse-economic-crisis-economic-policy-expert","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/without-fiscal-responsibility-u-s-headed-for-a-worse-economic-crisis-economic-policy-expert\/","title":{"rendered":"Without Fiscal Responsibility, U.S. Headed for a Worse Economic Crisis: Economic Policy Expert"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwithout-fiscal-responsibility-u-s-headed-for-a-worse-economic-crisis-economic-policy-expert%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1588013&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Democrats and Republicans need to rein in spending: Heritage Foundation\u2019s Joel Griffith<\/p>\n<div>\n<p>With raging <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a> and the Democrat-led Congress gathering enough Senate support to pass billions more in spending, Joel Griffith, a research fellow in the Thomas A. Roe Institute for economic policy studies at <a href=\"https:\/\/www.heritage.org\/staff\/joel-griffith\">The Heritage Foundation<\/a>, told NTD TV that if the United States does not rein in its irresponsible fiscal actions, the nation is headed for a <a href=\"https:\/\/www.theepochtimes.com\/trump-warns-something-worse-than-recession-is-coming_4619894.html\">worse economic crisis<\/a>.<\/p>\n<p>Griffith said that raising taxes on the wealthy will not get the federal government out of the financial hole it\u2019s dug for itself over the past few decades, particularly the spending that\u2019s occurred in the last two years.<\/p>\n<p>\u201cThe only way to pay for all this would be to print the money, to borrow the money, or to raise taxes on the middle class. There\u2019s no easy way out of this,\u201d Griffith said during the interview. \u201cAnd politicians don\u2019t have an appetite to correct the problem. So, there\u2019s going to be a crisis if we do not correct our ways. It\u2019s just a matter of time.\u201d<\/p>\n<p>By technical definition, the United States already has entered a recession, but the Biden administration continues to <a href=\"https:\/\/www.theepochtimes.com\/recessions-arent-all-the-same-treasury-secretary-yellen_4551215.html?utm_source=ai&#038;utm_medium=search\">deny the facts<\/a>.<\/p>\n<p>\u201cEverybody loves the goodies, and now we\u2019re suffering the consequences. And it\u2019s so important for people to realize that the economic misery that we\u2019re feeling right now is directly related to the mistakes that were made in the past two years, with shutdowns, with spending, and with printing,\u201d said Griffith.<\/p>\n<p>The U.S. government\u2019s debt now amounts to more than $30 trillion, which calculates to $100,000 per person, and with current interest rates, it\u2019s an additional $1,000 in debt, per person, being added each year, said Griffith.<\/p>\n<h3>Democrats\u2019 \u2018Inflation Reduction\u2019 Bill<\/h3>\n<p>Senators Joe Manchin (D-W.Va.) and Chuck Schumer (D-N.Y.) announced on July 27\u00a0that they had enough votes to pass a measure called the \u201cInflation Reduction\u00a0Act of 2022\u201d (<a href=\"https:\/\/s3.documentcloud.org\/documents\/22122281\/inflation_reduction_act_of_2022.pdf\">pdf<\/a>), which seeks to spend some\u00a0$433 billion\u2014about $369 billion toward\u00a0energy and climate programs over the next 10 years, and $64 billion toward extending federal subsidies for three more years for some people buying private health insurance.<\/p>\n<p>Meanwhile, many from both sides of the aisle viewed Manchin as a fiscal moderate who would not opt for further government spending, especially during a recession.<\/p>\n<figure id=\"attachment_4627171\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/28\/Manchin-GettyImages-1409723625-1200x702.jpg\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4627171\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/28\/Manchin-GettyImages-1409723625-600x351.jpg\" alt=\"Sen. Joe Manchin\" width=\"600\" height=\"351\" \/><\/noscript><\/figcaption><\/a> Sen. Joe Manchin (D-W.Va.) speaks in a hearing at the Dirksen Senate Office Building in Washington, D.C., on July 19, 2022. (Anna Moneymaker\/Getty Images)<\/figure>\n<p>Griffith, however, said that he is not surprised by Manchin supporting liberal legislation that will expand the federal government, and hurt his own state of West Virginia, because he has observed that the senator supports liberal policies.<\/p>\n<p>\u201cWe know what [Manchin has] supported in the past. And he has been for expanding the size and the scope of government. So I\u2019m disappointed that he has agreed to a package that is <a href=\"https:\/\/www.theepochtimes.com\/republican-lawmakers-criticize-inflation-reduction-spending-package-from-democrats_4627566.html?utm_source=ai&#038;utm_medium=search\">going to dramatically increase<\/a> taxes on businesses, [that] it\u2019s going to actually include more taxes on fossil fuels. And it\u2019s going to even further socialize our health care sector,\u201d said Griffith.<\/p>\n<p>The U.S. consumer is already paying, via taxes and inflation, the trillions of dollars the government spent and printed in the name of pandemic relief, said Griffith. This new package will only make the economy worse off.<\/p>\n<p>\u201cWe are suffering through the consequences of too much spending \u2026 and to see the Senate now moving forward on a package that\u2019s going to increase taxes and increase [the] costs on fuel production, \u00a0it\u2019s unfortunate,\u201d said Griffith.<\/p>\n<h3>Not Putin\u2019s Fault<\/h3>\n<p>Griffith said for a family with a middle-class income, \u201cWe\u2019ve seen your real take-home pay decline by more than $6,000 annually because of all this inflation.\u201d<\/p>\n<p>And even if inflation were to revert to normal tomorrow, about 2 percent annually, it will not negate the economic damage, only lessen it for the future, he said.<\/p>\n<p>\u201cPutting the blame on [Putin] and his actions in the war in Ukraine for rising prices\u2014that\u2019s simply, largely untrue,\u201d said Griffith.<\/p>\n<p>Gas prices were already on the rise long before Russian President Putin invaded Ukraine, said Griffith, adding, \u201cSame thing goes with our food costs, commodity costs, <a href=\"https:\/\/www.theepochtimes.com\/us-and-world-gripped-by-fertilizer-crisis_4452430.html?utm_source=ai&#038;utm_medium=search\">fertilizer costs\u2014<\/a>all of those were rapidly increasing long before Putin decided to invade Ukraine.\u201d<\/p>\n<figure id=\"attachment_4626159\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/27\/GettyImages-1242146097-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4626159\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1242146097-600x400-1.jpg\" alt=\"Jerome Powell\" width=\"600\" height=\"400\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4626159\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/GettyImages-1242146097-600x400-1.jpg\" alt=\"Jerome Powell\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> <a href=\"https:\/\/www.theepochtimes.com\/t-federal-reserve\">Federal Reserve<\/a> Board Chairman Jerome Powell speaks during a news conference in Washington, D.C., on July 27, 2022. (Mandel Ngan\/AFP via Getty Images)<\/figure>\n<p>\u201cLet\u2019s remember, it was our own politicians who shut down our economy. It was our own Congress in the United States that voted to spend $6 trillion that we don\u2019t have. And it was our central bank, our Federal Reserve, that printed $6 trillion out of thin air. That is what is largely responsible for this inflation, not Vladimir Putin,\u201d said Griffith.<\/p>\n<p>Another contributing factor to the poor economy is an aspect of <a href=\"https:\/\/www.theepochtimes.com\/search\/?q=unemployment&#038;t=ai&#038;sort=relevance\">the employment<\/a> rate called the participation rate (i.e., the percentage of people who are working age and are either working or looking for work), which more accurately describes who is working, said Griffith.<\/p>\n<p>\u201cThe [participation rate] is near generational lows. In fact, if we were to have a participation rate that would have remained steady over the past three years \u2026 it shows that more than a million people have actually dropped out of our workforce entirely.\u201d<\/p>\n<p>\u201cThat\u2019s part of the reason why if you go to a restaurant, a bar, a retail store, you notice the service isn\u2019t so good right now,\u201d added Griffith. \u201cAnd that\u2019s because relative to our overall population, we have fewer people working today than there were just two and a half years ago.\u201d<\/p>\n<p>There has been some increase in the participation rate in the United States, said Griffith, because \u201cas people draw down on those savings [accumulated during the time when the government was doling out pandemic relief funds], they\u2019re finding it necessary to return to the workforce.\u201d<\/p>\n<h3>Middle-Class Most Impacted<\/h3>\n<p>Griffith said the money the government is spending is coming from the taxpayer and that this will affect the middle-class the most because they won\u2019t be able to save and \u201cbuild wealth\u201d because of the current and rampant inflation.<\/p>\n<p>\u201cAnd that\u2019s what I\u2019m very fearful of\u2014that as we continue to spend far beyond our means, that it\u2019s not just going to have an impact this year, and next year, [but] 10 years and 15 years from now, [and] we\u2019re going to see even fewer opportunities [like the creation of new jobs] for typical American families,\u201d said Griffith.<\/p>\n<p><em>Mimi Nguyen Ly contributed to this report.<\/em><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-masooma-haq\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/06\/WEB_MasoomaZia1.jpg\" alt=\"Masooma Haq\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Masooma Haq began reporting for The Epoch Times from Pakistan in 2008. She currently covers a variety of topics including U.S. government, culture, and entertainment.\n<\/p>\n<\/p><\/div>\n<\/div>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-paul-greaney\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/FreshLook-200x200-Author.jpg\" alt=\"Paul Greaney\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Democrats and Republicans need to rein in spending: Heritage Foundation\u2019s Joel GriffithWith raging inflation and the Democrat-led Congress gathering enough Senate support to pass billions more in spending, Joel Griffith,<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1588013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1588013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1588013"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1588013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1588013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1588013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1588013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}