As gas prices continue to soar, home heating and air conditioning costs double and the costs of all goods and services ascend upwards with no end in sight, there is plenty of justified blame to go around. While post pandemic America should be thriving, it is anything but. It’s important we understand that every bit of the economic pain and anguish America is feeling, is 100% self-inflicted and policy driven.
In January of 2021, once being sworn in, the Biden administration began its assault on America’s energy sector and its energy independence. America had become a net exporter of oil and gas during the Trump Administration. In January of 2021, gas was selling for an average of $2.36 per gallon, and inflation was sustained at 1.24%. The shutting down of America’s oil pipelines, suspending public land drilling permits, ceasing exploration on federal lands and halting offshore drilling leases has crippled a once thriving industry which drove America’s economy.
Less than two years later, and 5.5 trillion in new spending, this administration and this congress have artificially created rampant inflation and intentionally pushed America into a man-made recession.
Many folks are unaware of the how and why of inflation, but it’s quite simple really. When the cost of goods and services outpace wage growth for a substantial and sustained period, this creates an inflationary gap. To make matters worse, when government continues to create new debt, while spending money it does not have, it inflates the numbers higher and for much longer.
Since December of 2021, America has lost seven trillion dollars of its net worth, while adding trillions in new debt. It’s much like using a new credit card to pay off a maxed out old credit card. Eventually the bank is going to want its money, while you barely make interest payments on the balance.
Recently, Joe Biden called on Saudi Arabia and the OPEC nations to produce more crude oil and sell it to the United States. Of course, the Saudi’s laughed at the president’s request; and why on earth would they acquiesce? They are selling the same barrel of oil for twice the price from a year ago, while producing substantially less. It’s a no-brainer for most people, except the incompetent Biden Administration.
Biden has now reached out to America’s enemies to address his premeditated shortfall. He has asked Iran, Venezuela and China to become fuel trading partners as he seeks to enrich their economies, while Americans and the American economy suffer.
Although Biden and house democrats refuse to admit publicly that we are in an economic recession, they can’t hide from the numbers. The U.S. economy shrunk nearly 1% in the second quarter, and by 1.6% in the first quarter. According to the Bureau of Economic Analysis, America’s Gross Domestic Product (GDP) has now shrunk for consecutive quarters which constitutes an economic recession.
The average household now pays $5134.00 more per year for the same goods and services it did a year ago. This amount has wiped out any income received from the so-called stimulus checks during the pandemic from March 2020 to March of 2021.
Of course, everyone else is to blame, Donald Trump, Vladimir Putin, the Ukraine, Saudi Arabia, Republicans etc. It’s quite clear that Biden and the Democrats have no plan, or even a willingness to reverse course and address America’s economic crisis. The only way to begin the healing process is to vote them out. ◆
Thank you and God bless you.
- Vincent Cavaleri
