{"id":2007938,"date":"2023-08-22T10:48:01","date_gmt":"2023-08-22T14:48:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-booming-biden-economy-that-isnt\/"},"modified":"2023-08-22T10:51:17","modified_gmt":"2023-08-22T14:51:17","slug":"the-booming-biden-economy-that-isnt","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-booming-biden-economy-that-isnt\/","title":{"rendered":"The Failing Biden Economy"},"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\">8<\/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%2Fthe-booming-biden-economy-that-isnt%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=2007938&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--><h2>The Biden Administration&#8217;s Celebration of the Inflation\u2063 Reduction Act<\/h2>\n<p>The Biden administration is enthusiastically celebrating the one-year anniversary of the misnamed Inflation Reduction Act (IRA), touting it as a catalyst for \u200da &#8220;booming&#8221; economy. Treasury Secretary Janet Yellen goes so far as to hail the IRA as &#8220;the boldest climate action in the nation&#8217;s history,&#8221; emphasizing its role in addressing the destabilizing effects of climate change.<\/p>\n<p>While the administration \u200cand Keynesian economists, who advocate for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-see-economic-chaos-as-opportunity-for-more-government-spending-welfare-programs\/\" title=\"Democrats See Economic Chaos As Opportunity For More Government Spending, Welfare Programs\">increased government spending<\/a>, are reveling in the surge of federal spending, there are underlying concerns. These economists had urged the Federal Reserve to print more money in 2021, which has resulted in the predicted record inflation in 2022.<\/p>\n<p>However, the consequences of this monetary advice \u200dextend beyond \u2062inflation. The \u2064challenge now lies in managing the excess money supply. The Federal Reserve&#8217;s attempts to combat inflation have already led to a decline of 10\u201330 percent in stock prices and housing activity. Throughout \u2064history, these sectors have been \u2063the first to react to monetary restraint, often signaling an \u2064impending downturn for the rest of the economy.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/article\/us-housing-starts-surge-in-boost-to-economy-5471837\">US Housing Starts Surge in Boost to Economy<\/a> &#8211; \u20628\/17\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/opinion\/federal-reserve-rate-hikes-helping-or-hurting-the-economy-5456512\">Federal\u200b Reserve Rate Hikes Helping or Hurting the Economy?<\/a> &#8211; 8\/15\/2023<\/li>\n<\/ul>\n<\/blockquote>\n<p>Despite these challenges, the economy appears to be thriving due to \u2062two key factors:<\/p>\n<ol>\n<li><strong>Reason #1\u2014Explosive Increase in Money:<\/strong> The Federal Reserve&#8217;s restraint followed a significant surge\u200d in money supply. While my preferred money supply measure has decreased by 15 percent over the past year, the two-year average increase stands at 9\u200c percent annually. Therefore, we have yet to witness the full impact of\u200b the Fed&#8217;s policy restraint.<\/li>\n<li><strong>Reason #2\u2014Massive Increases in Federal Spending:<\/strong> \u2064 The economy has not yet experienced a decline due to the substantial increase in federal spending and subsidies from President Joe Biden&#8217;s Build Back Better legislation. The injection \u200bof money into the economy has resulted in a temporary surge in spending, but the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/young-americans-must-lead-the-way-in-opposing-additional-covid-shutdowns\/\" title=\"Young Americans Must Lead The Way In Opposing Additional COVID Shutdowns\">long-term consequences<\/a> are \u200dyet to be seen. Similar to the initial\u2064 surge from new money, the\u200d current boost in business activity \u2064is both temporary and \u2063illusory.<\/li>\n<\/ol>\n<p>The\u200d Biden administration proudly\u200b claims that its policies are leading to a comprehensive restructuring of the economy. They anticipate a 10 percent increase in \u2062federal spending this year, amounting to $700 billion. Additionally, they estimate that redirecting resources to achieve climate\u200c objectives will involve several hundreds of billions of dollars annually. However, \u2062there is no evidence to suggest that this restructuring will have any significant impact \u200don the world&#8217;s climate.<\/p>\n<p>Throughout history, the United States has relied heavily on \u2064market forces to allocate resources, resulting in the highest living \u200cstandards among major \u2063economies. However, deviations from this reliance on \u2062free markets have often led to negative outcomes. Four major periods of excessive federal spending\u2014during the Wilson, Hoover-Roosevelt, Johnson-Nixon-Ford-Carter, and Bush-Obama years\u2014failed to increase the real take-home pay of the average worker. Progress in improving living standards has consistently occurred when the government allowed markets to function naturally.<\/p>\n<p>Similar to the illusory boost from a surge in money creation, a surge in federal spending and resource reallocation may initially stimulate the economy. The initial influx of spending in \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-booming-biden-economy-that-isnt\/\" title=\"The Failing Biden Economy\">politically favored areas creates\u2064 jobs<\/a> and generates\u200b profits.\u200b However, government planners often overlook the potential\u200c for these\u200b resources to be better utilized without reallocation.<\/p>\n<p>An example of the failure of government spending to create real value can be seen in the \u200cDepartment of Energy&#8217;s $9 billion loan \u2063to Ford for battery plants in Kentucky and Tennessee. The \u200cobjective was to jumpstart electric \u200dvehicle (EV) production by\u2064 shifting resources to battery companies. \u2062However, even with massive subsidies, the public&#8217;s demand for EVs\u2063 remains low.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Biden administration hails the Inflation Reduction Act (IRA) on its one-year milestone, crediting it for a thriving economy. Treasury Secretary Janet Yellen lauds the IRA as the nation&#8217;s most audacious climate initiative, commending the allocation of billions annually to combat the destabilizing impact of climate change on our planet.<\/p>\n","protected":false},"author":1580,"featured_media":2007939,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2007938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2007938","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\/1580"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2007938"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2007938\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2007939"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2007938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2007938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2007938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}