What would you do if you gained 36 pounds in less than three years?
First of all, you would be spending a lot of time at the tailor shop letting out waistlines or online buying a lot of new clothes. Secondly, you would start thinking about going on a strict diet and going to the Y every morning and afternoon. And thirdly, your physician and spouse would be getting on you night and day telling you to “stop gaining so much weight and start losing it, now!”
What if you knew that, no matter what you did, you would never go back to the weight you were before it happened? Your new higher weight would be the base weight you would carry for the rest of your life ― unless, of course, you started overeating and not exercising again and expanded your middle section again.
That is exactly what has happened to the U.S. money supply since Joe Biden became president. The Federal Reserve had to expand the money supply (inflation) massively in order to allow borrowing to cover all of the insane overspending of the progressive left.
At least overweight people can go on diets, exercise more and lose absolute poundage if they are diligent about it. These last three years under Biden have added layers and layers to our money supply which will never be fully reversed unless we experience a massive economic depression, which no one wants either.
The average price for a single-family home in America in 2000 was just $120,000. Today, nationwide the average is over $480,000. We will never see an average of $120,000 single-family homes again.
The average weight for an American male aged 20 and older was 199 pounds in 2020. The average adult American woman weighed 171 pounds according to the U.S. Census Bureau.
If a man “inflated” his weight at the same rate as annual inflation since Joe Biden became president in 2021, he will have gained 36 pounds, almost 20%, to weigh 235 pounds today. An average American woman will have gained almost 31 pounds and now weigh 202 pounds.
That is a lot of weight. Biden and his team are celebrating a drop in inflation from over 9% to 3.9% today. However, if the average American male gains “only” 3.9% more weight by Christmas, he will “only” gain “another” nine pounds. The average American woman will gain another eight pounds.
That’s really bad. Percentage increases on large numbers result in much higher absolute gross amounts than on smaller base starting points. If you gain 3% in weight from 100 pounds, you gain only 3 pounds. If you gain 3% on 200 pounds, you gain 6 pounds.
Inflation is cumulative. The fact that the inflation “rate” today is lower than it was in 2022 doesn’t mean prices are going down. It simply means prices are not going up as fast as they were in prior years.
Biden, Treasury Secretary Janet Yellen and his economic adviser Jared Bernstein tried to sell inflation under his watch as “transitory” due to a single event — Russia’s invasion of Ukraine ― which was not correct. Sometimes the price of a commodity such as orange juice goes up when a late spring freeze kills orange blossoms in Florida and reduces the supply of oranges ― but that is the only thing that goes up. When our money supply is expanded and triggers overall currency inflation, everything goes up in price, not just one thing.
A basic rule of economics is when the supply of something goes up, the value or price of it goes down. The same thing happens with our money ― since the Fed had to print up so much more money to accommodate Biden’s oft-ridiculous spending proposals, our money is worth much less now, which is why it costs so much more of it to buy the things we need every day.
We have a colossal national problem since Biden’s economic team is as unschooled in the basics of economics, fiscal policy and business as the Obama economic team ― because they are mostly the same people. Virtually all of Biden’s advisers came out of the Obama administration, which never produced more than 2% real annual GDP growth in any of his eight years in office.
Losing weight is hard work. Getting back to lower prices is impossible after politicians install bad policies.
Biden and his team have made all the wrong choices ― we can’t afford (literally) to let them make those same bad decisions for another four years.
