This article originally appeared on Fox Business on October 17, 2021
It is difficult to imagine a worse time for massive increases in taxes and spending, yet that’s exactly what Democrats in Washington, D.C. have in mind. We are all aware that, as Press Secretary Jen Psaki stated this week, President Joe Biden views the COVID-19 pandemic as an opportunity to "make fundamental changes in our economy." But the changes he has in mind are about to drive us over an economic cliff.
Businesses of all sizes are already being buffeted by seemingly intractable supply chain constraints, along with labor shortages, and unusually high consumer demand—all driven by pandemic-lockdown conditions that are only going to cause prices to soar as we get closer to Christmas.
It doesn’t take a Ph.D. in economics to recognize that restricted supply coupled with enhanced demand is a recipe for inflation, which has already been rising at a worrying rate for several months. An increased tax burden coupled with an artificial spike in demand from a glut of new government spending is exactly the sort of thing that could turn inflation into more serious stagflation that would hobble our entire economy.
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