How Biden and Democrats screwed up the economy

 David Winston:

Over the past few weeks, Democrats seem to be having a revelatory experience, discovering that simply increasing demand through government spending doesn’t work if there are limited products to buy. The supply side of the capitalism equation is essential, and when government layers on excessive regulations, it holds back business and slows the production of goods.

The inability of the Biden administration to both create a constructive environment for producers and a dependable, efficient supply chain to get goods to market has produced the worst inflation in 40 years.

Without supply, all increased demand does is increase prices. This administration needs to focus on fixing the supply side of the economy. But instead, Biden tweeted Friday, “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.”

So, his solution to inflation is to increase taxes on businesses, who will then pass those costs on to consumers. Sounds like a recipe for higher inflation.

Biden’s head-scratching tweet sparked a bigger reaction than the White House probably expected when one of the Democratic Party’s biggest boosters, billionaire Jeff Bezos, owner of The Washington Post, tweeted back, “The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead.”

Bezos went on, “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.” Ouch. But it got worse.

Two days later, Bezos took to Twitter again: “The administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves. Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.”

By Monday, it was the new presidential press secretary, Karine Jean-Pierre, in the hot seat over Biden’s tweet when Fox News’ Peter Doocy asked her how taxing corporations translates into lower inflation.

Jean-Pierre served up a classic word salad that ignored the president’s focus on taxing corporations and instead leveled her sights on the rich: “Look, we have talked about … this past year, about making sure that the wealthiest among us are paying their fair share, and that is important to do.”

She went on, “So I think we encourage those who have done very well, especially those who care about climate change, to support a fairer tax code that doesn’t charge manufacturers, workers, cops, builders a higher percentage of their earnings than the most fortunate people in our nation, and not let that stand in the way of reducing energy costs and fighting an existential problem, if you think about it, that is an example. To support basic collective bargaining rights as well.”

Note that she avoided Doocy’s question, and for good reason — increasing taxes on business will increase the prices they charge, not lower them.
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There appears to be little to no intelligent life in the Biden administration from the President on down.  It should not take a retired billionaire to explain basic economics to the administration.