{"id":608317,"date":"2021-08-02T09:20:37","date_gmt":"2021-08-02T13:20:37","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=608317"},"modified":"2021-08-02T09:22:13","modified_gmt":"2021-08-02T13:22:13","slug":"government-raising-debt-by-enormous-amount-will-cause-more-inflation-expert","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/government-raising-debt-by-enormous-amount-will-cause-more-inflation-expert\/","title":{"rendered":"Government Raising Debt by \u2018Enormous Amount\u2019 Will Cause More Inflation: Expert"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/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%2Fgovernment-raising-debt-by-enormous-amount-will-cause-more-inflation-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=608317&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>Barbara Kolm,\u00a0founder and director of the Austrian Economics Center, a think tank, told The Epoch Times\u2019 \u201cCrossroads\u201d that the Biden administration\u2019s massive spending plans are bound to drive <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a> higher.<\/p>\n<p>Asked whether she believes some economists are right to be concerned that the government\u2019s spending plans, which now amount to some $4.5 trillion, will push prices higher, she replied that, \u201cthis will, of course, cause inflation.\u201d<\/p>\n<p>Kolm expressed concern that whatever portion of the spending involves taking on more public debt would, in particular, be a burden on future generations.<\/p>\n<p>\u201cIt\u2019s not your generation, but it might be the generation of your kids and your grandchildren, who will still have to pay that back,\u201d she added. \u201cThis is a danger.\u201d<\/p>\n<p>Further commenting on the Biden administration\u2019s spending plans, Kolm said their impact \u201cis definitely raising the debt levels to an enormous amount.\u201d<\/p>\n<p>Kolm\u2019s remarks come as senators on Sunday unveiled a nearly $1 trillion bipartisan infrastructure package, expected to be followed by a partisan $3.5 trillion social, health, and environmental plan. The bipartisan bill faces a rough road in the Democrat-controlled House, however, where progressive lawmakers have called for a bigger package.<\/p>\n<p>While Biden\u2019s $1.9 trillion COVID-19 relief package was funded with borrowed money, the president has said he wants his other spending priorities to come without increasing deficits, chiefly by tax hikes on wealthier Americans and corporations.<\/p>\n<p>But according to an <a href=\"https:\/\/www.crfb.org\/papers\/president-bidens-full-fy-2022-budget\">estimate by analysts<\/a> at the nonpartisan Committee for a Responsible Federal Budget (CRFB), under President <a href=\"https:\/\/www.theepochtimes.com\/t-joe-biden\">Joe Biden<\/a>\u2019s <a href=\"https:\/\/www.whitehouse.gov\/omb\/budget\/\">full budget proposal<\/a> for fiscal year 2022 and the subsequent decade, public debt would rise from $22 trillion today to over $39 trillion by the end of 2031. In percentage terms relative to gross domestic product (GDP), the think tank estimates federal debt will reach a record 110 percent of GDP at the end of 2021, rising to 114 percent by 2024 and 117 percent by the end of 2031.<\/p>\n<p>On inflation, Biden has taken the view that most of what\u2019s behind the recent surge in prices can be attributed to \u201ctransitory effects\u201d like surging demand grating against supply chain bottlenecks as the economy continues to emerge from the pandemic deep freeze.<\/p>\n<p>At the same time, he has said that his administration would remain watchful for \u201cunchecked inflation\u201d and would adjust policy accordingly.<\/p>\n<p>\u201cI want to be clear: my administration understands that were we ever to experience unchecked inflation in the long term, that would pose a real challenge for our economy,\u201d Biden told reporters at a <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2021\/07\/19\/remarks-by-president-biden-on-the-economy-3\/\">White House press briefing<\/a> on July 19. \u201cWhile we\u2019re confident that isn\u2019t what we\u2019re seeing today, we\u2019re going to remain vigilant about any response that is needed.\u201d<\/p>\n<figure id=\"attachment_3914426\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-1234059375-1200x800-1.jpg\" width=\"1200\" height=\"800\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3914426 size-large\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-1234059375-1200x800-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"427\" \/><\/noscript><\/figcaption>&nbsp;<\/p>\n<p>President Joe Biden speaks about the nation\u2019s economic recovery amid the COVID-19 pandemic in the State Dining Room of the White House in Washington, D.C., on July 19, 2021. (Drew Angerer\/Getty Images)<\/figure>\n<p>But while officials at the Federal Reserve have, like Biden, taken the view that inflation will pass once the pandemic-related disruptions wane, some economists have raised the alarm on the pace of rising prices. These have been echoed by Republicans, who blame the Biden administration\u2019s spending policies and plans for pushing prices higher.<\/p>\n<p>It comes as a key inflation gauge, the so-called core\u00a0personal consumption expenditures (PCE) price index, which excludes food and energy and is the Fed\u2019s preferred method for measuring inflation, <a href=\"https:\/\/www.theepochtimes.com\/key-inflation-gauge-posts-fastest-annual-price-gain-in-30-years_3926060.html\">rose 3.5 percent<\/a> in the 12 months to June, the Commerce Department <a href=\"https:\/\/www.bea.gov\/news\/2021\/personal-income-and-outlays-june-2021-and-annual-update\">said on Friday<\/a>.\u00a0The <a href=\"https:\/\/fred.stlouisfed.org\/series\/PCEPILFE#0\">last time<\/a> the core PCE inflation gauge saw a similar year-over-year vault was in July 1991.<\/p>\n<p>The Fed looks to core PCE as the key inflation gauge that informs its monetary policy, which has an inflation target of a longer-run average of 2 percent.<\/p>\n<p>Some economists have expressed concerns that if prices accelerate too fast and stay high for too long, expectations of further price increases will take hold, driving up demand for wages and potentially triggering the kind of wage-price spiral that plagued the economy in the 1970s.<\/p>\n<p>Meanwhile, more than 80 percent of Americans are concerned about inflation, according to a <a href=\"https:\/\/www.skynova.com\/blog\/what-is-inflation-and-how-does-it-affect-you\">survey by Skynova<\/a>, which also indicated that 61 percent feel inflation will negatively impact their lifestyles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Barbara Kolm,\u00a0founder and director of the Austrian Economics Center, a think tank, told The Epoch Times\u2019 \u201cCrossroads\u201d that the Biden administration\u2019s massive spending plans are bound to drive inflation higher. &#8230;<\/p>\n","protected":false},"author":7,"featured_media":2315279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-608317","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\/608317","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\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=608317"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/608317\/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=608317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=608317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=608317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}