Posts Tagged ‘recession’

A few months ago, I praised Senator Joe Manchin for standing strong against the Democrats’ plans to fundamentally transform the United States into socialist third world hellhole.  With this article I am now singing a different story because just this past week Joe Manchin announced that he will now join forces with the Democrats in the destruction of the economy of the United States when he declared support for the ironically named Inflation Reduction Act.    

First, the bill proposes $433 billion in new spending programs, including $369 billion for “energy security and climate change” and $64 billion (at least) for more Obamacare subsidies.

Given the fact that energy prices have been soaring ever since Biden entered the Oval Office and declared war on American energy production, doubling down on green energy policies by throwing another $369 billion in subsidies for renewable energy is an unwise decision.  It will have no effect on bringing down the price of energy for the vast majority of Americans, which is one of the key drivers of inflation throughout the economy.

Inflation is commonly defined as too much money chasing too few goods and services.  When the federal government increases spending, the money supply increases.  When the money supply increases, the value of each dollar in circulation decreases.  Hence, inflation.  This is not rocket science.

Second, the bill calls for $739 billion in new taxes, including a 15-percent hike in the corporate minimum tax.  But here’s the thing: corporations do not pay taxes; people do.  When the government raises taxes on corporations, people end up footing the bill via higher prices, lower wages, less availability of goods and services, and reduced research and development.

In other words, increasing taxes on corporations compounds inflationary pressures because it deters production; therefore, we get less in goods and services.

This pile of refuse will also cripple the economy of the United States by raising taxes, despite the protestations of the factually challenged Democrats who wrote this bill, which is nothing more than a lighter version of the Green New Deal.

The Congressional Joint Committee on Taxation found that taxes would jump by $16.7 billion on American taxpayers making less than $200,000 in 2023 and raise another $14.1 billion on taxpayers who make between $200,000 and $500,000.

During the 10-year window, the average tax rate would go up for most income categories, the Senate GOP said, citing the data from the joint committee. And by 2031, new energy credits and subsidies would have people earning less than $400,000 pay as much as two-thirds of the additional tax revenue collected that year, the release said.

“Americans are already experiencing the consequences of Democrats’ reckless economic policies. The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000,” said Sen. Mike Crapo, an Idaho Republican who sits on the Senate Finance Committee as a ranking member, and who requested the analysis.

As always, the Democrats can only claim the Inflation Redaction will be beneficial to the economy of the United Stated by playing fast and loose with the truth.

Democrats are at it again using budget gimmicks and fake sunsets to create savings on paper – just like they did in the $5 trillion Build Back Broke bill that passed the House last year – while in reality delivering more spending, more inflation, and more debt. In total, the Democrats’ current inflationary reconciliation bill will spend $728 billion and add $114 billion in new debt. It will dump more fuel on the inflation fire while layering on top billions in new taxes that will hit middle class families and U.S manufacturers. One has to ask a simple question, how will this do anything to help lower prices?

Joe Manchin appears to be delusional when he announced support for this farce.

I always wanted to do something I could for my country, and this is all about my country,” Manchin outlined. “It’s not about my politics or someone else’s politics or my friends on the Republican side or my friends on the Democrat side or whoever is upset with me. It had nothing to do about any of us. This is about what can we do for the country.”

He continued, “And right now, inflation is the greatest threat that we have. It’s hurting every West Virginian, I can assure you, at the gas pump, at the food store, and their energy bills, and just their daily lives. And if we have a chance — and I’ve said this all along — if I ever had a chance to have an energy policy that was balanced and we could basically make sure we were producing more energy for what we have rather than going around the world asking other people to produce for us, shouldn’t we do that? That’s something we all wanted, and that’s what we got out of this. It’s a great bill.”

By John Ruberry

“The fliparoo theory of PolitiFact is now confirmed,” Dan Bongino said early in his July 28 podcast, “The fliparoo theory is this: If a fact-checker, airquotes, PolitiFact, says something is true it is probably false. If PolitiFact says something is false it’s probably true.”

Which means, of course, that we are now in a recession. PolitiFact, in a piece written by propagandist Louis Jacobson entitled, “No, the White House didn’t change the definition of ‘recession,'” he fact-checked a claim that originally came from an Instagram post. In seemingly 10,000 words, meant to overwhelm low-information voters, Jacobson ruled that statement false.

Jacobson is wrong, he’s gaslighting us. We are in a recession.

And Jacobson is not alone.

The Biden White House, led by the embarrassment of a press secretary, Karine Jean-Pierre, has been redefining “recession” for at least a week. For decades, the generally accepted definition of a recession has been two successive months of negative GDP growth. In the first quarter of 2022, the American economy shrank by 1.4 percent, and it contracted by 0.9 percent in the second quarter. These are facts. 

“However, the two-quarter threshold cited in the Instagram post has never been official,” Jacobson said in his so-called fact-check. “It’s more like a rough guide,” he continued, “one piece of a complicated puzzle.” Translation: the wise and oh-so-brilliant Jacobson is right, and you are a semi-literate yokel for accepting the commonly agreed upon description of a recession. 

In another overly long fact-check, Newsweek’s Tom Norton, another hack apologist, also ruled “false” the claim that the Biden White House is redefining what a recession is. “Furthermore, the White House website doesn’t have a dictionary or catalog of all political terminology and jargon it uses (that is the case for other governments, such as those of the UK and Canada, too),” Norton offered. 

Wow. I’m convinced. Not.

In Norton’s Newsweak–or is it Newspeak?— fact-check, Norton quotes Secretary of Treasury Janet Yellen, who, by the way, was wrong about inflation being “transitory,” that it is really up to a secretive private organization to determine a recession. Who knew? “There is an organization called the National Bureau of Economic Research that looks at a broad range of data in deciding whether or not there is a recession,” she revealed.

Another fact-check fabulist, the Washington Post’s Glenn Kessler, appears to be on vacation so he hasn’t weighed in on the leftist-induced recession debate. Three years ago, while fact-checking Donald Trump, Kessler wrote, “A recession is two quarters of negative economic growth.” But Joe Biden wasn’t president then.

Another prominent (along the lines of someone having an ugly prominent nose) fact-checker, USA Today, also hasn’t recently given its opinion on what a recession really is. Oh, what’s this? In a 2020 fact-check USA Today informed us, “A recession is generally defined as two consecutive quarters of declining GDP, or gross domestic product, a monetary measure of the market value of all the final goods and services produced during a specific time period.”

But on the other hand, Snopes is bowing to the Democrat Party mantra about recessions. Referring to a couple of social media messages, “The tweets quoted above may give readers the misleading impression that the Biden administration literally tried to revise the criteria economists use to determine when a recession has occurred. But that was not the case,” Bethania Palma chimes in for Snopes.

It is the case. Snopes is lying.

Here are some media talking heads talking not too long ago, based on who I see here and the chyrons, using the classical definition of a recession, in a montage compiled by the Media Research Center. You know the, you know the thing, as Biden likes to say, two consecutive quarters of declining GDP growth. C’mon man!

But, assuming briefly we are not in a recession when will we be in one? The Biden administration won’t say. Is it a recession when we have three successive quarters of declining growth? Four? Five-and-a-half?

Or will it be a recession only when there is a Republican president?

Dan Bongino is right. The fliparoo theory of “fact-checkers” is now confirmed. 

John Ruberry regularly blogs at Marathon Pundit.