Given Chair Praises Bad Economics Amid Covid ‘Pandemic’
Economist slams Powell over everything he got incorrect.
During a Q& A with students and teachers, Government Reserve Chairman Jerome Powell praised the bad economics that drove the government response to the coronavirus pandemic. With this clip from his podcasting, Peter Schiff breaks down everything Powell got wrong.
During the Zoom event, Powell went out of his way to praise Our elected representatives for passing the “ CARES Act. ” The particular Coronavirus Aid, Relief, plus Economic Security Act was the first $2. 2 trillion stimulus plan Congress approved in response to the pandemic in March 2020.
So , why does Powell respect this massive government investing plan?
This individual said that Congress was able to substitute the income Americans lost as they were out of work because of the pandemic. As Peter pointed out, the plan not only replaced lost income, they augmented it.
“ A lot of people were getting additional money not working than when they gained money for working. ”
Yet Powell missed an important stage.
“ Congress was able to replace the particular income that people lost, but it wasn’t able to replace the productivity that was lost. ”
Men and women aren’t on the job working, they aren’t producing any products or services. The government can not replace that lost manufacturing. And income is supposed to end up being tied to production.
“ You assist produce goods and services, and in reward, you get money. And now you can use that money to consume the goods and services that you produced. ”
Of course , you don’t consume the actual products you produce. However your production still adds to the general basket of goods available. Philip explained it this way.
“ When you are working, you’re helping to fill a bag with services and goods, and then you get paid. And now you have the right to reach straight into that bag and grab some of the goods and services that you helped produce. But when all these people didn’t go to work, these people stopped putting stuff to the bag. But now the government gives them all this money to allow them to reach into the bag and grab stuff anyway. When no one is putting things into the bag, and everybody is reaching into the handbag to grab stuff, they’re going to finish up empty-handed. ”
Ultimately, consumers find yourself paying higher prices for your remaining goods in the bag because we have all of this cash chasing fewer goods and services. Prices get bid up, and end up with the rising cost of living .
Powell doesn’t appear to understand the difference between replacing money and replacing genuine productivity.
“ It’s the stuff. It is the things that are produced that we need. ”
Meanwhile, Powell’s Fed added even more money to the economy through its massive quantitative easing program. As Philip put it in another podcast, you can printing money, but you can’t print stuff . As production fell during the pandemic, the proper monetary policy would have been to withdraw money from blood circulation.
“ It needs the money supply to shrink alongside the availability of goods to maintain prices. In case you increase the supply of money while you’re simultaneously decreasing the supply of goods, prices are going to soar, which is exactly what we’re encountering right now. ”
Peter said Powell should not be praising Congress designed for doing the wrong thing.
“ They should be condemned, as should the Government Reserve for being complicit on this activity. ”
Furthermore, the stimulus and bailouts enabled the us government to enact policies the general public would never have accepted if they had to bear the consequences. Because the pandemic unfolded, President Trump invoked images of sacrifice during the Second World War. It’s certainly true Us citizens sacrificed during the war, however they didn’t get a government bailout.
“ Trump didn’t ask one to sacrifice. He said, ‘ Hey, stay at home and we will send you a check. If your business is struggling, don’t worry. Get a PPP loan – a forgivable loan. We’ll give you some money. ‘ That was not the appropriate policy response to an emergency. Whenever we really had a pandemic, if we really had a health turmoil, then obviously people have to bear the financial implications of that crisis. It’s not the best thing, but it’s reality. But what the government did is definitely try to pretend that no one actually had to suffer because the government can make everybody’s pain go away simply by printing cash. Well, they didn’t make the pain go away. They actually exacerbated the pain. They just kicked the pain down the road a bit. And so now we’re lastly starting to catch up with that pain. ”
Sean M. Brooks of AmericanEducationFM. com joins The Alex Jones Show to break down how to fight back against medical tyranny.