Montana’s Economist: “Rescue Plan” a Failure, Inflation Worsened
Whatever its merits, the 'American Rescue Plan' has to go down as one of the biggest economic policy failures in modern history, and the decline of our spending power will last a lot longer than the spending did. -Dr. Pat Barkey
Many of you get the opportunity to listen to the University of Montana's Dr. Pat Barkey on the radio. He produces an "economic minute" that is played on radio stations all across Montana.
Dr. Barkey is with the Bureau of Business and Economic Research at UM, and frequently tours the state as part of an economic update and economic outlook series with the Montana Chamber of Commerce.
In his Wednesday morning report, he made it clear that government spending is driving inflation. He also cited the additional $2 trillion in spending pushed by the Democrat majorities in Congress.
Dr. Pat Barkey: Since the beginning of 2021 US inflation has significantly outpaced inflation in other developed countries....whatever its merits, the American Rescue Plan has to go down as one of the biggest economic policy failures in modern history, and the decline of our spending power will last a lot longer than the spending did.
Speaking of inflation- this week we heard that inflation is now up 8.5%. Biden wants to blame it all on Putin, even though 7% of that inflation was there BEFORE Russia invaded Ukraine. And let's be honest, the weak foreign policy in Washington, it could be argued, basically invited this invasion in the first place. Putin wasn't invading when Donald Trump was President of the United States.
How is inflation hitting you? Chances are you're paying more than just 8.5% more for your products. Take your basic breakfast. Let's say you want eggs, bacon, some butter on your toast, and coffee. As Montana Senator Steve Daines (R-MT) shared via Twitter earlier this week, prices for several of your basic grocery items are up double digits.
Bacon is up 18.2%. Eggs are up 11.2%. Coffee is up 11.2%. That butter you want for your toast is up 12.5%. And I didn't even include the increased prices for your toast.
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