In a recent interview on Straight to the Point, Jonathan Williams, ALEC Chief Economist and Executive Vice President of Policy, discussed the impact of progressive monetary policy on Pennsylvania State Rep. Joe D’Orsie. They explored the consequences of the large amount of spending and programs implemented during the pandemic, which led to a classic case of stagflation.
Williams emphasized that despite efforts to bring inflation down, the overall level remains elevated and is growing at a faster pace than expected. He pointed out that when trillions of dollars are spent without a corresponding increase in goods and services, inflation is inevitable as there are too many dollars chasing too few goods in the economy.
The interview highlighted that progressive monetary policies such as those implemented by Bidenomics have been a failure for hardworking taxpayers. The pressure on tax rates and increases from the Biden Administration and progressives in Congress has added to the challenges facing the economy.
As discussions continue about how to address the economic situation in Pennsylvania and nationally, it is important to understand basic economic principles. Spending trillions of dollars without an increase in goods and services will inevitably lead to inflation, creating a difficult situation for businesses and consumers alike.
