Keynesian Economics: A Failed Policy in Practice

The administration of President Joe Biden, along with its economic policies, has been widely criticized, particularly concerning the implementation of Keynesian economics. This policy framework, which advocates for government intervention in the economy, especially during downturns, has been subjected to intense scrutiny after the alleged failure of its implementation. Critics argue that the theory does not necessarily translate into reality, highlighting numerous shortcomings in practice.

Failed Economic Policy: The Theory and Reality Gap

The centerpiece of Keynesian theory is the belief that giving large sums of money to citizens will lead to increased spending, which in turn stimulates production and leads to a positive return on investment. The idea is that increased consumer spending can help lift the economy out of a recession and spur growth. However, this theory has faced significant challenges in practical application.

Biden's recent efforts to implement this policy, such as providing large stimulus checks to citizens, have been met with skepticism. Proponents argue that such measures can help boost consumer spending and, in turn, support businesses and production. However, critics like myself argue that this policy often leads to inflation without ensuring increased production. The essential flaw, as many experts warn, is the link between supply and demand. Without a concomitant increase in production, the surge in spending can lead to sharp price increases, directly triggering inflation.

Key Examples: The Biden Stimulus Checks and Inflation

One concrete example is the scenario where every family is given an extra $10,000. If this were to happen through the printing of trillions of dollars, the immediate consequence would be inflated demand for goods and services. While consumers might rush to purchase, the actual supply of goods cannot keep up with the sudden surge in demand. For instance, car manufacturers might struggle to meet the increased demand, leading to an increase in prices.

The result would be a situation where those willing to pay premiums can secure what they want, leading to a general rise in prices. This phenomenon is not a new occurrence; past attempts of similar stimulus policies have shown a consistent pattern of inflation without significant increases in production. Thus, the policy fails to resolve the underlying economic issues it aims to address.

Expert Warnings and Government Overreach

These warnings against the policy have been repeated for years, yet policymakers often downplay or ignore them. For instance, during Biden's presidency, he was repeatedly warned about the economic fallout of his policies, but his administration dismissed these concerns. Instead, he continued to advocate for additional spending, à la the Inflation Reduction Act. This act, which was never a solution to inflation as its name implies, was primarily just another attempt to stimulate the economy through excessive spending.

The Inflation Reduction Act, as always, was just a political ploy to appease certain constituencies without addressing the root causes of inflation. The act's title, in my opinion, is a mockery of its purpose. If it had any chance to reduce inflation, it would have done so long ago. However, as is often the case, political rhetoric trumps practical economics. The result was that inflation continued to rise, and the American public was left to suffer the consequences.

The Consequences and Critiques: Biden's Administration and Its Critics

The consequences of these failed policies extend beyond just inflation. The Congressional Budget Office has already stated that such policies will increase inflation. However, the administration chose to ignore these warnings, much like previous administrations have. This is a recurring pattern of belligerent and negligent governance that prioritizes political agendas over economic stability.

When faced with such economic challenges, one might question the choice of a leader like Vice President Kamala Harris. Her performance and the trust placed in her have been consistently questioned. Harris is not trusted by either major political party, and her approval ratings are lower than even Biden's. Moreover, her presence as a figurehead in an administration that has struggled with economic policy has led to ridicule and criticism from around the world.

These criticisms are not personal attacks; they are based on observable facts. The question of whether she is an appropriate choice for leadership is one that must be addressed. The stakes are high, and the future of the nation depends on sound economic policy and effective leadership.

Conclusion

In conclusion, while the principles of Keynesian economics can be theoretically sound, their practical implementation often leads to significant economic problems. The failure of the policies enacted during the Biden administration to prevent inflation highlights the need for a more balanced and considered approach to economic planning. Critics argue that the administration's heavy-handed approach to economic policy has instead exacerbated existing issues, leading to economic instability and a general sense of disillusionment with the political system.

Feedback and further discussion are always welcome, as our understanding of economic policy is a critical aspect of how we build and maintain a stable and prosperous society.