A Platform Of Sound Economics For RFK To Run On, Part 1

The economic policy of the bipartisan “uniparty” has been an abysmal failure. In fact, Bidenomics and Trump-O-Nomics are just two sides of the same deficient coin. They amount to the inflationary accommodation of powerful constituencies which have captured control of policy—-Wall Street for the GOP, domestic spending constituencies for the Dems and the military/industrial/intelligence complex for both.

The bottom line doesn’t lie, however. Real economic growth during the uniparty regime of Trump/Biden has averaged barely 2.0% per annum—notwithstanding an outpouring of monetary and fiscal stimulus that had never before even been imagined. Still, the economic growth rate since 2016 is just a fraction of the 5.0% average during the Kennedy-Johnson era and 3.5% under Ronald Reagan.

And, yes, these figures are more than fair comparisons because the results for the Trump/Biden era of borrow, borrow and borrow some more are currently overstated. That’s owing to the fact that there is still another recessionary shoe to fall.

So average in the impending six quarters ahead of negative GDP growth and/or stagflation and the uniparty will have achieved eight years of the weakest economic growth since WWII. And by a long shot at that when compared to the average growth of 3.2% for all presidents—good, bad and indifferent—during the seven decades between 1947 and 2016.

The cause of the problem is not mysterious. The Washington uniparty has become addicted to borrowing and printing. Between them, Trump and Biden have raised the national debt by nearly $13 trillion. That’s 40% of all the money that’s ever been borrowed by presidents since George Washington.

Likewise, the money-printing story at the Fed is actually worse, and neither POTUS has uttered so much as a cross word about the tsunami of fiat credit tumbling off the digital printing presses in the Eccles Building. Accordingly, during the last six and one-half years of uniparty rule the Fed’s balance sheet has swollen by $4 trillion. That’s 48% of all the money that’s ever been printed by the Fed since it opened its doors for business in the fall of 1914.

Needless to say, all of this egregious borrowing and money-printing has hit middle class America right in the economic solar plexus. Since December 2016 the smoothed CPI (16% trimmed mean CPI) is up by 24%. But where it really hurts main street is at the grocery store, with prices up by 27%, and at the gas pump and utility meter, with energy prices higher by 37%.

In everyday family budget terms, in fact, food and energy prices have risen more in the last 6 years than they did during the prior 12 years. Owing to all this cumulative inflation, therefore, real average hourly wages have risen by barely 3.5% since December 2016.