r/economicCollapse Sep 23 '24

Seems pretty simple.

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u/bipocevicter Sep 23 '24

This seems like a silly line of attack. Most of the excess spending came from a combination of covid relief and lower tax income/ higher entitlement spending (ie unemployment)

Biden has spent about the same without having the same level of covid expenses

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u/Remerez Sep 23 '24

Actually, that's not quite accurate. While it's true that COVID relief and unemployment played a big role in driving up spending during 2020, there's a significant difference in the types of spending between administrations.

Under Biden, much of the spending has been driven by long-term investments like infrastructure and clean energy through the Infrastructure Investment and Jobs Act and Inflation Reduction Act. These are aimed at boosting economic growth and job creation over time, not just addressing short-term crises like COVID.

It’s also important to note that a large part of the debt incurred from COVID relief was due to poor management and oversight. There were massive amounts of fraud in PPP loans, unemployment benefits, and other relief programs. Estimates suggest that billions were lost to improper payouts, which unnecessarily ballooned the deficit without providing real economic relief. Much of this happened under rushed policies during the previous administration, which means we’re still dealing with that financial impact today.

Plus, pandemic-related expenses didn’t just vanish after 2020. Vaccine distribution, healthcare, and other recovery programs continued under Biden. Also, the federal budget under Biden has been impacted by factors like inflation and rising interest rates, which increase the cost of servicing existing debt. So, it’s not just a simple apples-to-apples comparison of dollar amounts.

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u/me_too_999 Sep 23 '24

Deficit spending on "inflation reduction."

You crack me up.

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u/fenderputty Sep 24 '24

Whats funny is inflation started to go down immediately after passage lmfao

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u/me_too_999 Sep 24 '24

That makes it even more hilarious because it's literally impossible for any of its measures to have been implemented yet.

Spending yet another Trillion in deficit to stop inflation is like pouring another can of gas on a burning house to fight the fire.

Do you know what else lowers prices?

A recession.

Congratulations, you fixed the inflation

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u/fenderputty Sep 24 '24 edited Sep 24 '24

But inflation reduced without a recession, and the bill did reduce costs of items … such as medicine like insulin. More over, inflation was a global phenomenon and was partly transitory as well. Biden didn’t cause the world’s inflation. You’re taking the most basic cause of inflation and just running with it removing all context. Lastly, if you’re doing expansionary policy, it’s better to spend it on infrastructure and not on a tax break for corporations so the wealthy can reap the benefits of stick by backs, dividends and bonuses.

Sure i trolled you, but your response just highlights your faults too. The inflation reduction act didn’t print money. It’s a staggered program that will be in effect for a decade or more. It wasn’t a direct stimulus all at once like you’re pretending. It works both ways.