Biden Adviser Claims Increased Government Spending Will Fix the Country’s Inflation Problem

With the potential for an economic recession looming on the horizon, the Biden regime is finding ways to address this problem on top of the blatantly high levels of inflation taking place in the US. 

Chair of the Council of Economic Advisers Cecilia Rouse believes she has the answer to these problems. In an appearance on CNBC’s “Squawk Box”, Rouse said that more government spending in the form of the Build Back Better spending program will solve inflation and get the country back on its feet. 

Rouse said the following:

The president is focused on inflation and in fact, Build Back Better is a long-run investment to increase economic capacity so that we’re better able to address inflation. Parts of Build Back Better include addressing costs, such as prescription drugs. It includes making investments to make the transition to clean energy which we know we need to be making as well. So that’s not the kind of dollars that is stimulus, it’s investment, and it’s the kind of investments that actually pay for themselves over time. So that’s smart economic policy right now…  

Tyler Durden of ZeroHedge is correct in describing Rouse’s proposal as “nonsense”. He expanded below: 

This is utter nonsense.  Infrastructure spending is stimulus; this is a fact.  Increasing economic ‘capacity’ does not address dollar devaluation, and creating projects from nothing in order to encourage spending does not address too many dollars chasing too few goods if you have to print even MORE dollars to make those infrastructure projects possible.

Truth be told, the government has no ability to contain inflation right now. 

More spending will obviously be financed by increased money printing, which will worsen the country’s inflation problems. 

Specifically, the Build Back Better program costs roughly $5 trillion and would not only exacerbate the country’s national debt problems but also worsen inflation as increased money printing would be used to finance this program. 

Ultimately, if DC is serious about monetary and fiscal discipline, it will need to cut spending and move towards a hard monetary system. 

The chances of that ever happening are slim to none. Politicians are addicted to big government and central banks are one of the institutions that facilitates this addiction.

If big spending and central banking are not fully addressed, America’s economic problems will only worsen.