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Tags: biden administration | recession | economic relief

Biden Administration Lamely Shrugs at Looming Recession

yellow sign recession ahead amid gray cloudy skies

Nicholas Chamberas By Wednesday, 20 April 2022 03:21 PM EDT Current | Bio | Archive

The notion that President Joe Biden will run for a second term is wishful thinking reserved for the most Pollyannaish members of his inner circle. Senior advisers to President Biden discussed a one term presidency even before he took office.

While the Democratic Party establishment, Vice President Kamala Harris and exalted politicos fret about his replacement, the American people should be panicking about something far more important — and that is the prospect of a recession or worse. Yes, panicking because no matter who replaces President Biden, they may be faced with the worst economy since the Great Depression.

The hallmark of the Biden administration has been an astonishingly enduring symbiotic relationship with the mainstream media. "Don't believe your lying eyes" may as well be the official mantra produced by most news outlets defending the Biden administration. Many Americans now leave the grocery store feeling like they just visited a luxury spa. One can be forgiven for confusing the gas station with checkout at the Four Seasons Hotel.

While economists and commentators have warned about the dangers of inflation since this past summer, we are also seeing new indications of an economy on its way to a recession. Last month, the spread between the yield on two-year versus ten-year government bonds was just .02%. At one point late last month, the yield on five-year Treasury notes was temporarily higher than 30-year notes. Inverted yield curves have predicted every recession since 1956.

The Federal Reserve raised interest rates for the first time since 2018 in what is expected to be the first of several rate hikes in order to combat inflation. Fighting inflation is paramount to stabilizing the economy but obviously reduces liquidity and restricts access to capital funding for small and independent businesses.

Rate hikes are traditionally deployed in order to cool "overheating" economies in situations where unemployment is usually below historical averages. Blaming lower unemployment for the inflation crisis we are experiencing now is foolhardy and inexplicable.

The current unemployment rate is still higher than pre-pandemic levels, and now we have an astronomically higher cost of living than we did under the administration of President Donald Trump. The number of jobs added during the Biden administration is almost three million jobs short of the 9.4 million jobs lost during the pandemic.

Federal Reserve rate hikes will contribute to lower wages even as recent reports indicate that income growth is already stagnating. How are Americans supposed to handle double digit increases in cost of living when their incomes will either stay the same or decline? To be fair, the hedge fund traders gobbling up houses will do just fine under the Biden administration; working and middle-class families will suffer inordinately.

As the rate hikes take hold, the reduction in the money supply could cause companies to scale back planned investments leading to job losses. Higher housing and rental costs could also reduce planned purchases of big-ticket items and affect local economies.

Fed rate hikes are hardly going to reduce rising costs attributable to higher energy and transportation costs. Rate hikes are not going to address the supply chain issues, and the Biden administration seems listless in proffering anything that really would.

The worst kept secret in Washington, D.C., is that the Biden administration does not have any intention of seriously offering economic relief to struggling families; this administration's bizarre animus against domestic energy production repudiates any pretense that the Biden administration is serious about reducing the cost of living for the American Middle Class.

If the Biden administration truly cared about working and middle-class families in America, Transportation Secretary Pete Buttigieg would have never told Americans to go out and buy a new electric car in order to save money on gasoline. An expensive automobile purchase is hardly realistic for families having difficulty keeping up with mortgages or rent while putting food on the table.

While such useless advice is certainly ignorant, tone-deaf, and obnoxious to all sensible Americans, (and particularly offensive to struggling families across the country), it was no accident. Secretary Buttigieg is already maneuvering for 2024. He is far more preoccupied with currying favor from Green New Deal advocates than making any meaningful transportation proposals.

Democratic Party elites are already bracing themselves for what some see as an inevitable announcement that Joe Biden will not be running for a second term. Possible contenders are already being mentioned and starting to prepare for the possibility that Joe Biden won't run again.

There is a power vacuum in the White House. The president's advisers routinely have to "walk back" public comments made by President Biden, several times in the past month. The issue of who is really in charge isn't nearly as daunting as the question of whether there is anyone in the White House working on fixing the economy. Please don't count on it.

Nicholas Chamberas has advised good government advocacy groups, elected officials and political candidates on public policy matters as well as having served as a senior adviser on several prominent New York City campaigns. He holds a degree in Political Science and a Juris Doctor. Read Nicholas Chamberas' Reports — More Here.

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The issue of who is really in charge isn't nearly as daunting as the question of whether there is anyone in the White House working on fixing the economy.
biden administration, recession, economic relief
Wednesday, 20 April 2022 03:21 PM
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