Editor,
According to a recent MIT Sloan study “Federal spending was responsible for the 2022 spike in inflation, research shows.” Inflation was 1.4% when Biden took office in 2022, though, it grew to 9.1% by June 2022, its fastest pace in 40 years according to AP News. Now Kamala Harris wants to double down on Biden’s spending, which will cause even worse inflation.
Politicians have been paying for inflationary government spending by increasing government debt. The interest on our government debt was $658 billion in 2023 and is projected to increase to $8.1 trillion by 2032 according to the Peterson Institute and many other economists. Eventually most government spending will have to go to pay interest on the debt with devalued dollars.
Ed Kahl
Woodside
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(11) comments
Good morning, Ed
Thanks for writing an LTE about a topic that affects all of us. Here's what Thomas Sowell said about inflation... "It is a way to take people's wealth from them without having to openly raise taxes. Inflation is the most universal tax of all."
What utter nonsense, Ed! It is Trump we have to be concerned about, - too dumb to understand that it is the tariffs he has promised, that will increase inflation. He has no understanding of socioeconomics. Do you remember how the national debt skyrocketed under his so-called “administration”?
Jorg - your screeching has been falling on deaf ears. Biden Harris have been destroying our economy for 3.5 years with the highest inflation ever. You are talking about tariffs that Trump may impose but what are we to do with our current miserable state? And please, you don't know squat about economics, socio or otherwise, that is clear.
Trump really told you all that about me? WOW, - he knows EVERYTHING!
Dirk; Talk about someone not knowing squat about economics. that's you and Ed. Ed's MITSloan study was disproved online in 60 seconds! If any of you Trumpsters took economics, business management or U.S. Government classes, you would know what you are talking about. But, none you guys did, so all you guys know absolutely nothing about economics. You guys do know how to lie and make things up without any evidence to support what you are claiming. Good luck with that.
Well Mike O. - I happen to have taken several graduate economic classes at local universities and I can tell you that your vapid replies have not add a single fact to the discussion. But, it all depends on whose ox is being gored and who disproved that study. One of my economics professors mentioned on day one that an economist is someone who will tell you tomorrow why his predictions of yesterday did not pan out. Clearly the Biden Harris, aka bidenonomics, is a disaster. Even the cackling Harris is trying to distance herself from it. Now, who is lying, pray tell me?
Under Trump, debt only skyrocketed when he was forced to keep the US afloat after Fauci and the Chinese unleashed Covid on the world!
I'm opposed to Trump's tariffs on other grounds, but at least the inflation they cause is offset by the income from the tariffs. The Dems spending isn't offset so it drives up the cost of government borrowing but trillions of dollars but then I guess the guys at MIT don't know what they're talking about.
“There are only three ways to meet the unpaid bills of a nation. The first is taxation. The second is repudiation. The third is inflation.” ~Herbert Hoover
Would you prefer tax increases (as in repeal the Trump tax cuts) or defaulting on our debts? Inflation/deflation is a perennial balancing act.
Westy - the macro economic solution is to boost the economy, thereby increasing resulting tax revenues, and cut spending to balance the budget.
How about cutting government spending on non-essential by 10%, cutting out illegal immigrant freebies, cutting spending on the Ukraine war and then cutting the 25% of Federal government waste and fraud.
Welcome to the discussion.
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