Bidenflation

Bidenomics drove up costs of energy, labor, shipping, and borrowing, while deflating money value, resulting in inflation.

Bidenomics drove up costs of energy, labor, shipping, and borrowing, while deflating money value, resulting in Bidenflation. He campaigned on driving up energy costs as part of the Green New Deal, and enacted policies to do that. He rewarded layabouts and leaving the workforce. He spent Trillions on Democrat give-aways. Then is shocked at the results.

ℹ️ Info

~ Aristotle Sabouni
Created: 2022-06-02

Facts[edit | edit source]

Six major drivers of the costs of goods and services (beyond just supply and demand) include the following, all of which Biden Admin made worse. The cost of materials, labor, energy, comliance, borrowing, value of the dollar.

You could put our enemies in charge, and they couldn't have done a more coordinated attack on each of those. Then destroyed confidence in the administration and goverrnment at large, by incompetently blaming each of their actions on something else.

Cost of Materials - The cost of materials (supplies, goods) that you're using to make your goods/services is dependent on all the other things as well; labor, energy, borrowing, money value, and transportation/shipping. And those will impact each of the suppliers prices, and thus you have to adjust the final price, or go out of business. So a small increase in any of those will be passed on. A little but to all of them, becomes cumulative. Biden checked them all.

Cost of Labor - The Biden admin drove up the cost of labor with the drive for $15, paying people not to work (taking them out of the pool), social services (unemployment, weflare, etc) dissuades labor, vaccine and mask mandates or Woke Politics and change drove others to retire or take a break, and so on. That drove up the costs of labor, which need to be passed on to consumers. (Infation).

Cost of Energy - Energy cascades to everything, since everything requires energy to produce. The Biden admin declared war on energy. 80%+ of our energy comes from fossil fuels, and they did everything they could to scare off future development in the U.S., which means a known constraint in the future, which brought in speculation and lock-ins. As well as anti-pipline/drilling, meant that places like Canada or Mexico, secured deals with other countries than the U.S., and that impacts U.S. pricing. Subsidizing higher cost and unreliable Solar/Wind can not come close to alleviating the harm done by attacking domestic oil.

Borrowing and the Value of the Dollar - they flooded the market with more dollars, which dilutes its value. (Supply and demand). So that causes inflation. If you have a pie cut in 6 or 12 pieces, you have more pieces (dollars) with the latter, but it takes twice as many pieces to get the same amount of pie. That flooding if thge dollars then requires a pullback (or you currency collapses). But that pullback now causes a recession. So first they dilute our purchasing power (Quantitative Easing), which causes inflation. Now they start Quantitative Tightening, which means the costs of borrowing goes up. And all businesses work on debt, so they have to pass these higher debt costs on to consumers.

Other magnifiers[edit | edit source]

Russia - In the meantime, putting sanctions on Russia was a bit of a moronic thing to do. It doesn't hurt Russia, as they will sell on the black market for more, or had many contracts guaranteed with places like China. But it did constrain many commodities, which drives down their availability, which drives up their price. So even if Ukraine war was at fault, it's not going to affect us. What affects us, is the reactionary policy (sanctioning). Biden owns that. There were many ways to react, and all of them better than sanctions, as sanctions have never ever worked at changing a government policy, but have worked at hurting the little guy and the people (driving up prices) -- which usually hardens them against you.

Student Debt - In the meantime the Biden administration is doing things like transferring the debt of rich college graduates to the working class, by canceling student debt -- which cancels nothing, it just moves it to someone else, with interest and overhead. These people know that they have to pay the costs, so they stop spending and start saving in advance, to prepare for the tax or inflationary hit they know is coming. Either cools the economy.

🗒️ Note:
Some people claim that since pipelines and exploration take years to change supply, that eliminating those couldn't possibly be responsible. That's like saying a city claiming a moritorium on all new housing development in 2 years, will have no impact on housing today. People/markets respond to information, and speculation. A lack of future capacity means you can raise prices today, and people buy contracts to lock in thier prices today (at a premium), which reduces downward market pressures in the future.

Cost of Energy[edit | edit source]

The #1 factor in the cost of energy is oil production. Energy cascades to everything, since everything requires energy to produce.

Biden Campaigned on being anti-Oil and would destroy their business and drive up prices. ^[1]
01/2021 - Biden immediately reentered the Paris Climate Accord, despite the U.S. being the only country exceeding the improvements required, and knowing that it would increase compliance costs
01/2021 - Biden canceled the Keystone Pipeline, which would have increased capacity from 591K barrels to 1.3M barrels), of 9.4M total U.S. or ≈7%.
- Cancelling Keystone meant that Canada made agreements with China for much of their oil. If they were going to have to ship the oil by more expensive rail/truck, they might as well ship it to China and get more.
01/2021 - Biden halted leasing programs in ANWR which could have been about 1.5M more barrels per day, or ≈16%
01/2021 - day-1 halt on all new oil and gas leases and drilling permits on federal lands and waters, ≈25% of our new capacity
01/2021 - directed federal agencies to eliminate all supports for fossil fuels.
01/2021 - imposed new regulations on oil and gas and methane emissions.

When Biden was elected Gasoline national average was $2.09, it's now $4.59, but it had already increased by >30% before Putin invaded. And if we had the ability to respond, the increase in prices would have been lessened.

Conclusion[edit | edit source]

Businesses are facing increasing labor costs, increasing regulatory compliance, increasing shipping costs, energy costs, a lack of workers... and with inflating costs means inflating their prices, they're going to see a decrease in demand.

With interest rates going up, housing values are going to peak. Especially in high cost areas. (The cost of borrowing for the same house will increase, so what you can afford will decrease). Consumer sentiment is going to tank. And as people see their 401K and residual values in their homes go down, they're going to dramatically decrease spending. And the economy is going to crash, while it's inflating.

All of these were either contributed to (magnified) or not nullified, by a Bidenomics policy.

They are not 100% responsible for everything like COVID, Chinese lockdowns, or Putin... but they fertilized Putin's aggression, magnified the problems. And certainly did nothing to make it better.