American Consequences - May 2021

8% at the start of the year were all run by Democrats. The committee wrote...

I wish economics and the coronavirus were not political, but they are. The Biden administration recognizes that it has an opportunity to “remake” the country in a way it believes to be right and just. And it will use coronavirus as the impetus to instigate change. After all, why is the Biden administration suggesting trillions more in stimulus when we’ve already won the battle against the virus? Because, as Rahm Emanuel once infamously said, “Don’t let a good crisis go to waste.” And so we’re now confronting the consequences of so many policy mistakes... a smaller workforce being one, and inflation being another. A Recipe for Disaster Have you seen the jump in producer prices? And consumer prices? Woah . I’m sure your wallet has felt it... Consumer prices increased more than 4% in the latest month, with energy prices up 25% and gas prices up nearly 50% over the last year. I should point out that this data doesn’t even take into account the Colonial Pipeline disaster... We won’t learn what that attack did to prices until the next Consumer Price Index report, but it’s clear all this money floating around our economy is having a negative effect on prices. Producer prices (the prices producers pay for raw goods and materials) are also way up. The most recent data shows a price hike of 6.2% – the highest since we began tracking 12-month data.

This is what is so egregiously unjust about the Biden blue-state bailout stimulus bill... The competent, open states are forced to bail out the reckless lockdown states, both through massive direct cash giveaways to their governments and through weekly unemployment bonus checks.

In the case of the two states with low unemployment rates that are run by Democrat governors, the Republican

legislature overruled the governor and opened schools in Kansas. Meanwhile, in Wisconsin, the Republican state Supreme Court struck down the governor’s lockdown. What coronavirus has taught us, really, is that POLICY MATTERS. The Disney Case Study Consider the case of two Disneys... Disneyland in California, which was shuttered for months on end, versus Disney World in Florida, which opened up many months ahead of its sister company. How could Florida manage to open schools and businesses when it comprised such an elderly population while California could not? Because Florida’s government got out of the way . Florida’s government allowed businesses to continue... allowed schools to open... and amazingly, the result was fewer coronavirus cases than the state that shuttered everything.

American Consequences

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