You might need a finance degree to have seen this one coming. A non-partisan study conducted by researchers at the Federal Reserve Bank of San Francisco has issued a report examining why inflation is so high right now. A big reason is the free money Joe Biden’s administration continued to print and send out to Americans. 

Here’s a fancier way of saying that same thing, courtesy of Oscar Jordan, Celeste Liu, Fernanda Nacho, and fabian Rivera-Ryes, who wrote it in the weekly economic letter for the San Fran Fed. 

“Fiscal support measures designed to counteract the severity of the pandemic’s economic effect may have contributed to this divergence by raising inflation about three percentage points by the end of 2021.”

If you don’t remember details of the financial free-for-all that started with the COVID pandemic, the U.S. Government approved about $6 trillion total in relief measures over the past two years under former President Donald Trump and Biden. 

Never in the history of the world has there ever been anything remotely like this.  Back in 2008, during the housing and financial crisis, the Obama administration greenlit a relief package less than half the size of the American Rescue Plan. 

The report from the number crunchers also said that the massive spending helped prevent a years-long recession with ridiculously high unemployment numbers.  

“Without these spending measures, the economy might have tipped into outright deflation and slower economic growth, the consequences of which would have been harder to manage.”

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