On Friday, Aug. 16, Que Mala Harris laid out her economic plan: price controls, $25,000 to first-time home buyers, credits for children and legislation against price gouging. Those are all band-aids trying to deal with higher prices, but these gimmicks do not include even one fix for the root causes of higher prices.
Harris compared prices now to the prices prior to COVID and shared how many food prices and other prices are up more than 40 and 50% since before the pandemic. Why prior to COVID? Because prices were actually much lower after COVID when Biden/Harris took control and have increased more than 40% since the Democrats took control.
Even with her comparison to prices before COVID, prices are up for food, housing, energy and clothing more than 40% – by her own admission.
So what are the root causes of price increases? And what did Harris propose to fix those root causes? Nothing.
Why? Because government is the root cause. This Democrat-run government caused the inflation with federal spending that increased from a norm of 18% of GDP to this current record high of 25% of GDP (a 40% increase) and by limiting oil production, which drove up oil prices and prices for every product oil influences, including costs for basic transportation to ship products.
Questions: How much will these programs of Harris cost? She doesn’t know. Many experts say trillions of dollars. And where does that money come from? Taxpayers, you and me – or more government debt. And what does that debt cause? More inflation!
None of these types of programs worked to lower inflation when Jimmy Carter was president. Rationing and price controls just caused product shortages when Nixon was president. None of these types of programs work. They exacerbate the problem by causing product shortages just like in Russia and China. They have never worked in socialist countries. Did Harris study any of that?
Robert Reich is an economic adviser to Harris and Democrats. He has continually pushed MMT (Modern Monetary Theory), which states that government should spend as much money as it wants to spend and then simply print more money since money is just fiat anyway. Maybe that is what Harris plans to do – just print more money to cover her increased spending. And then what happens when you pump more money into the economy? Just look at Venezuela. Incredibly high inflation. MMT has never worked anywhere. Never.
If Harris issues more debt to cover her increased spending, then what happens to interest rates? They increase to attract more bond purchasers. And when interest rates increase, then what happens to housing costs, credit card payments and rents? They all increase as well.
The only ways to reduce inflation for average working Americans is to cut government spending to the traditional 18% of GDP and to increase oil production so that oil supply increases while energy prices decrease. And that is the Trump plan, not the Harris plan.
Harris is economically stupid. A lawyer. A prosecutor by her own words. A government employee for her entire career with no actual private-sector business experience. And her economic plan now proves that fact.
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