Former Obama Economist Admits Biden Screwed Up, Warns We Could Crash
The United States economy is on the verge of a disastrous collapse, according to Larry Summers, former Director of the National Economic Council under Barack Obama. In an interview with Bloomberg TV, he warned that the Federal Reserve's efforts to combat inflation are not working and that the country could be heading towards a "collision or crash down the road."
The problem, according to Summers, is a demand-heavy economy, with retail sales skyrocketing, and more jobs are being created than there are people to fill them. He did not mention Biden's insane spending habits, but it is undoubtedly a contributing factor.
This demand-heavy economy puts pressure on prices, causing inflation, and if the Fed tries to slow down the economy too quickly, it risks triggering a recession. Summers believes that this is a balancing act that the Fed is struggling with, and the risks are real.
Summers' warning comes on the heels of January's inflation rate of 6.4%, which was worse than expected. Some economists fear that the road ahead could be "rocky." Investors are also worried that the Fed will raise interest rates even further in response to the strong demand, which could slow down economic growth.
One of the reasons for the strong demand is the massive $1.9 trillion stimulus package that Joe Biden pushed through Congress earlier this year. Summers had warned at the time that such a large injection of money into the economy would likely lead to inflation, and it appears he was right.
The package also includes a range of unrelated and questionable spending measures, such as funding for museums, theaters, and other cultural institutions. This is not the only example of the Democrats' reckless and ineffective economic policies.
The party has been pushing for a $15 minimum wage, which would hurt small businesses and lead to job losses, particularly among low-skilled workers. They have also advocated for higher taxes and increased regulation, which would stifle innovation and entrepreneurship.
It's time for a change. We need leaders who understand how to create a healthy and prosperous economy, not ones who prioritize political posturing and virtue signaling over sound policy. We need to support businesses, encourage innovation, and reduce government interference in the economy. Let's hope that Larry Summers' warning is heeded before it's too late.