Recession and the Economy

 Inflation and recession are headline news. What is happening and what can be done about it? And who or what is too blame?

I blame Trump and right wing MAGA Republicans

We are just getting through a worldwide pandemic. One million people died, tens of millions sick. Trump turned his back on and made a mockery of Dr Fauci and the good health medical advice that he gave. For me, washing hands, wearing a mask and getting vaccinations (5 so far) is a small price to pay for our continued good health throughout the rise and fall of the illness. But sadly millions of people, lead by relentless misinformation and denial, did get sick and supply chains were broken. Who do Republicans blame? Biden… President Biden who stepped up and out of a very comfortable retirement to try to save the soul of America. A soul that I agree is in mortal jeopardy from the Trumpsters and white supremacists.  

Inflation is an attribute of capitalism. Prices go up as a function of supply and demand. When the market value of your house goes up you think that’s good but if the cost of food goes up, that’s bad. But the cost or value is always related to supply and demand. If the supply chain is broken and the cost of supplying goes up the cost to the consumer goes up. Supply and demand for labor drives up wages, good for workers, but the cost of their labor inflates the cost of the goods or services they produce. They say that the supply and demand for money effects inflation but I don’t really understand how. Raising the interest rates makes borrowing more expensive, shrinks the amount of money available, lenders make more money, people borrow less and home prices stall because the cost to the buyer has increased but how does that keep the cost of bread and milk lower? I’ll ask my knowledgeable friend John that question.

A brief recap of modern American history is 

Bush 1 = War in Iraq - Recession 

Clinton = Recovery 

Bush 2 = War in Iraq - Great Recession

Obama = Recovery

Trump = Denial of COVID 19 Pandemic, $2.5 trillion bailout, one million dead, Denial of loss to Biden, attack on democracy 

Biden = Build Back Better, Infrastructure Investment and Jobs Act,  Inflation Reduction Act