Profiles

One of the biggest problems of Biden's neo-Keynesian approach to government budgets is that it leaves households with less money in real terms and the “anti-inflation” measures increase debt and inflation.

As government weight in the economy rises faster, technical recessions may not appear in the official data, but citizens suffer it, nevertheless. 

It's all in spite of enormous social spending, more than two trillion euros of stimulus, and the increase in population. Resorting to the old “it could have been worse” argument makes no sense.

2022 was a warning sign that debunked the myth of eternal monetization of debt with low inflation. It is time to be serious. High deficit spending is not a tool for growth, but a tool for cronyism and a burden on the future.

Inflationists will blame inflation on anything and everything except the only thing that makes all prices, which are measured in monetary units, rise at the same: Money supply growth rising faster than real economic output.