The “ only way” to deal with rampant inflation in America is to raise taxes on the center class and eliminate taxes cuts enacted by former President Donald Trump, based on Senate Majority Leader Chuck Schumer (D).
“ If you feel like gettin rid of inflation, the only way to obtain is to undo a lot of the Trump Tax Slashes and increase rates, ” Schumer said during a press conference at the Capitol building on Wednesday.
“ No Republican is ever likely to do that, so the only way to get rid of inflation is by means of reconciliation, ” he added, referring to a procedure whereby Democrats would force through laws with their narrow simple majority in the Senate.
Schumer’s explanation is ignorant at best and dishonest from worst, as there are several ways to reduce inflation.
Schumer conveniently omitted that reducing the federal government’s excessive entitlement spending caused by the Federal Reserve’s money-printing policy known as “ quantitative easing” would more efficiently decrease inflation.
Actually only raising taxes on Americans would not actually deal with the inflation problem whatsoever due to the sheer size from the national debt and its accompanying interest.
As economist Milton Friedman noted: “ Inflation is always plus everywhere a monetary sensation in the sense that it is and can be produced only by a more rapid increase in the quantity of money within output. ”
The Federal Reserve can raise borrowing interest rates to the present official inflation rate – 8. 5% as of March – to encourage cost savings and reduce economic demand, yet that would likely push the particular economy into a recession.
The Fed could also shrink its balance linen – a process known as quantitative tightening – to reduce the money supply, which would ease inflationary pressure.
“ There’s one source of inflation. The actual definition of inflation is definitely an expansion of the money provide, ” economist and EuroPacific Capital CEO Peter Schiff told Fox News host Tucker Carlson last 30 days, adding that inflation is effectively a hidden tax imposed upon the American individuals because the dollar’s spending energy is diminished over time.
“ It’s the Government Reserve that’s been expanding the cash supply, ” Schiff ongoing. “ They’ve called it ‘ quantitative easing’, but they keep creating dollars, and it’s really the U. S. govt that spends those dollars into circulation. And as it will that, the value of each dollar goes down. And so the price of everything you buy with dollars rises. ”
“ The middle class is going to have the inflation tax the hardest. Their wages are not going to go up nearly as much as the cost of residing, ” he added.
So Schumer’s suggestion is to add on even more economic pain upon the middle class by hiking their fees even more in an inflationary atmosphere while doing nothing to deal with the out-of-control government investing that caused the pumpiing to begin with.
Watch the full Democrat press conference:
— Senate Democrats (@SenateDems) April twenty six, 2022