The economic destruction from the shutdown recession from February to April 2020 and subsequent policy mistakes has been persistent. The labor market has improved but this is not a “booming economy.” Congress has added $6 trillion in deficit spending since January 2020 to reach the new high of $30.5 trillion national debt, which amounts to about $91,000 owed per American. And the Federal Reserve has monetized much of the new debt, leading to a 40-year high inflation rate. This has resulted in stagflation rearing its ugly head for the first time since the 1970s with rampant inflation and a stagnating economy, as output may decline in the first half of 2022. The Biden administration, Congress, and the Fed can correct this by not overregulating, overspending, and overprinting, respectively, but instead providing pro-growth policies for more productive private sector activity so that Americans can improve their livelihoods.
Vance Ginn, Ph.D.