Surprising is the extent that the American voters seem to have a misunderstanding of basic economics and the relationship between a president and their own economic interests.

We live in a free society (for another year anyway) with a market driven economy. Presidents are executives that must enforce the national laws and regulations. They can sign bills into law but can’t create them in a vacuum.

The government through legislation can agree to spend money in our economy, like paying for long-needed infrastructure upgrades, defense spending and hiring more government employees. This definitely can put more money into the economy thanks to the future taxpayers of America (our children and grandchildren).

Presidents do not control interest rates. They are controlled by the board of governors of the Federal Reserve. They are independent of the president and cannot be removed by the president.

Inflation is caused by basic supply and demand issues. When supplies were constrained by COVID policies and worldwide shortages, prices on nearly everything went up. Once supply chains were restored, prices remained high as retailers and businesses made record profits.

If people were to significantly cut back their consumption of wants (not needs), those prices will go down. But people are willing to borrow money to eat out at restaurants multiple times a week.

And in a country that is dedicated to inequality, the rich don’t need to sacrifice so they pay the price their neighbors can’t afford.

So electing to buy things that you can live without has a lot more to do with inflation and your own economy than who we collectively elect for president. But they are the biggest targets to blame for our woes.

 

Tom Turner

Augusta

Copy the Story Link