This article was authored by Andy Puzder for FoxBusiness.com on October 4, 2022.
To the surprise of no one outside the White House, a recent ABC News/Washington Post poll showed that 74 percent of Americans believe the economy is in bad shape, up from 58 percent in the spring of 2021. With 84 percent or respondents identifying the economy as a top issue in the upcoming midterm elections and 74 percent saying the same about inflation, why does the Biden administration seem more intent on exacerbating the problems than addressing them? Let’s take a look at how Biden got us into the current economic crisis and what he could do to get us out of it.
While there are many moving pieces in any economy, the root causes of inflation are relatively straightforward. In normal economic times, the markets balance supply and demand minimizing inflation. For example, if the demand for a particular retail good is high, but the supply of that good is low, retailers will increase prices resulting in reduced demand. When the supply of a particular good is greater than the demand, retailers will lower their prices increasing demand.
The goal is to keep supply and demand in balance and our free market economy naturally trends towards that balance (which was the case during the Trump administration). Problems arise when the government intervenes.
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