The Trump-Harris Race To The Bottom Of The Economic Policy Dumpster

We concluded Part 2 by noting that both UniParty candidate are clueless with respect to the overwhelming economic policy challenge of the present era, which is the urgent need to shackle the nation’s rogue central bank. After all, it is the ultimate source of—

• the nation’s runaway public and private debt.

• the egregious explosion of financial wealth among the top 1%.

• the cumulative inflation that has relentlessly savaged savers and wage earners on main street.

Needless to say, all three of these long-standing ills have become dramatically more acute since January 2017, and on the watch of both UniParty teams on a continuous basis.

For instance, the public debt was $19.9 trillion in December 2016, and it had been accumulated by the first 44 presidents during the first 227 years of the American republic. But already that figure has surpassed the $35 trillion level and will easily top $36 trillion by the end of Biden’s term. Yet nothing remotely this massive would have materialized had the Fed not monetized trillions of the public debt, thereby preventing what would have otherwise been a politically fatal big time rise in bond yields and crowding-out of household and business borrowers.

Again, you can’t tell the UniParty players apart when it comes to burying future generations in insuperable public debt. Trump added $8 trillion during his four-year sojourn in the Oval Office and Biden will have matched him with his own $8 trillion add-on by the time he exits the White House.

Public Debt Of The United States, 1966 to 2024

Not surprisingly, both UniParty administrations have talked a good game in behalf of the average family on main street. Yet in both cases the White House has encouraged the Fed to run the printing presses overtime, thereby inflating the net worth at the tippy-top of the economic ladder.

Specifically, the net worth of the top 1% of households rose from $27.4 trillion in Q4 2016 to $46.2 trillion in Q1 2024. That $18.8 trillion wealth gain towered over the$3.9 trillion increase in total wage and salary earnings of the entire work force during the same seven-year period. And even then, a significant share of this aggregate wage gain went to the most affluent households.