Bill Clinton Kept Reminding Himself to Focus His Policy.
Why this is foolish?
In the era of the FED how much can politicians change the economy
The economy functions like a ship. Once it starts moving in a direction it takes months or years to redirect. The FED is an independent agency which sets parameters to control money supply. By doing this it attempts to reduce the depths of recession and to limit inflation.
The policies adopted by any president require time to take effect as well. The state of the economy for the first couple of years of a presidency is more a result of the previous president’s policies then the current.
Donald Trump inherited an extremely strong economy.
Trump oversaw a strong economy that imploded in the final years of his watch. The pandemic was the catalyst for that implosion.
Why Biden Inherited a Weak Economy?
Four all 4 years of the Trump presidency the government ran with a growing deficit. During the Obama / Biden years the government was able to reduce the deficit. In the months leading into the Obama presidency the economy went into a recession. In his first year the deficit grew by an infusion of spending by the government. From the point forward Obama was able to decrease the deficit until his last year.
During the Trump years the deficit continued to grow, until his last year the pandemic. The deficit increase dramatically. The economy was unstable before Biden became president.
Gas prices mostly declined between 2010 and 2020. Because of this price decrease from 2015 through 2020 oil and gas preduction declined since 2015. The supply of oil and gas from Russia has been shut off with the war in Ukraine.
Capitalistic Economy.
Supply and demand work in concert. Without a change in demand, when supply is limited prices rise. Did Biden or Trump have any control over these policies? Trump would have handled Ukraine differently. In the days leading up to the invasion, he and other republicans served as cheerleaders and praised Putin’s brillance.
But I would suggest that it would not have been in our interest to allow without response the invasion of Ukraine by an authoritarian Russia.
Make no mistake, Putin sees an end of democracy.
My Feelings on Democracy, Capitalism, and Socialism.
In other posts, if there is a choice between capitalism and democracy, I’ll choose democracy everytime.
There is a time for sacrifice. I believe now is one of those times. Does the current increase in prices hurt me? Of course, but that is a sacrifice, I’m willing to take to support democracy.
In other posts, I have discussed my feelings on capitalism versus socialism. I do not consider socialism a dirty word as most republicans do? In segments such as education, police and fire resources, we already practice a form of socialism.
Some segments of the economy represent issues of true personal need. Health care is one such segment. Plan and simple, we can not allow the greed associated with supply and demand to rule in segments of true need.
These our the truths of our economy
Early in their term current president can not take to little credit for the state of our economy. The inverse is also true. Early in their term we must not place too much blame on the president when the economy fails.
Some events are just out of the presidents control.
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