The State of the Economy: Jonathan Williams on Straight to the Point with Joe D’Orsie
This is economics 101 where when you spend trillions of dollars more, you're going to have inflation because there's too many dollars chasing too few goods in the economy.
Jonathan Williams, ALEC Chief Economist and Executive Vice President of Policy, was interviewed by Pennsylvania State Rep. Joe D’Orsie on Straight to the Point talking about the effects of progressive monetary policy, and what can be done to try to improve the economic situation in the Commonwealth.
This experiment that we’ve seen nationally with so-called Bidenomics has been a complete abject failure for hardworking taxpayers across the country, whether it is the continued pressure on tax rates and tax increases here in Washington, DC from the Biden Administration and the so-called progressives in Congress. Looking at the results of the huge amounts of trillions of dollars of new spending, of course, starting during the pandemic era, but those programs continuing on and even being expanded in many ways. What we’re seeing right now, is a classic case of stagflation.
This is what we’ve been warned about, and that is the definition of a lack of robust economic growth and high inflation. When you look at the stubbornly high inflation numbers, yes, they’ve come down since the highest of the pandemic post pandemic levels when we were at 8 or 9%, but the overall level is still elevated, and it’s still growing at a much faster pace.
The Federal Reserve has always kept the 2% target, but there’s been some discussions recently to say, “Well, throw that out the window because it’s too difficult to bring inflation down.” Well, you know what, Representative, I’m kind of a Midwestern common sense guy myself from Michigan. This is economics 101, where when you spend trillions of dollars more, you’re going to have inflation because there are too many dollars chasing too few goods in the economy.