The nation's inflation is growing because President Joe Biden is blocking the production of goods and services at a time when demand is at an all-time high following lockdowns due to the COVID pandemic, former presidential adviser and Newsmax show host Dick Morris said Saturday.
"There's a huge traffic jam as the demand way overwhelmed the supply, and then you look at the fact that the only way to expand the supply would be to produce more, make more goods and services," Morris said on Newsmax's "The Count."
"And to do that you have to invest, but there's Biden with a stop sign saying 'I'm going to double the capital gains tax, so sure, don't invest.'"
Morris used a metaphor to explain his point further.
"We were all stuck in the parking garage," he said. "We couldn't go outside because of COVID and the administration Biden going around filling our gas tanks until every gas tank was completely full, but nobody could go outside. Nobody could drive."
But when the restrictions were lifted, it was like the gate to the garage opened and "everybody went out to go shopping and to spend the money in the gas tank," creating the traffic jam, and with Biden limiting supply as demand swelled "you're going to get this huge inflation," said Morris.
Meanwhile, Biden has vowed that the "superwealthy" will soon have to pay their "fair share," but Morris said that already, the top 10% in the country, according to income, pay approximately "two-thirds of the income tax revenue and about 80% of all revenues to the federal government."
"The top 1% pays about a quarter, so it's pretty well larger than what should be considered their fair share," said Morris. "When he says his spending is fully paid for, that is ridiculous. It's paid for by estimates and guesses and hopes and prayers of revenue coming in."
Biden says that he will crack down on taxes that have not been paid to help pay for his infrastructure push, thereby bringing in some $400 billion, but Morris said that is "ludicrous."
"Part of the way it's paid for is that he's taking money that he got under the stimulus bill that hadn't been spent yet, and he's now using it to pay for this," said Morris. "That is total double accounting."
But, he added, "it's not paid for. You increased spending and you increased taxes. You're going to get inflation and you're going to slow economic growth. Ronald Reagan proved that by doing the opposite."
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