CNN Business has released an opinion that acknowledges rising inflation and rising gas prices. The economist author unreasonably recommends applying a band-aid to the problem, suggesting that the government should spend more money.
But in this case, the supposed cure is really worse than the disease.
Mark Wolf, executive director of the National Energy Assistance Directors Association (NEADA), may want to consider reviving Economics 101. Wolf wrote in his March 9 opinion piece in CNN Business that inflation had jumped to its “highest level since 1982”.
Gas prices rose “particularly fast, reaching $ 4.25 per gallon on Wednesday, up from about $ 2.86 per gallon last March. That means filling a 20-gallon tank at the moment costs $ 85, up from $ 57.20 at this point last year. ”
“The fastest and most effective way to protect vulnerable citizens from the effects of global economic instability is to pay directly through the IRS, which is similar to the three stimulus checks sent to families during the height of the epidemic,” he wrote.
Chris Edwards, director of tax policy studies at the Cato Institute, exposed the folly of Wolf’s plan in an exclusive comment to MRC Business: It’s very difficult to put out. ”
In other words, more stimulus checks mean worse inflation.
Daniel Mitchell, an economist and co-founder of the Center for Freedom and Prosperity, explains that past stimulus spending has also stifled the number of jobs in MRC Business’s exclusive comments. “The so-called stimulus spending has been a failure under Republican presidents and Democratic presidents,” Mitchell wrote in an email. “For example, Biden’s $ 1.9 trillion package last year actually led to fewer jobs in the White House’s own numbers. The bottom line is that a big burden on government spending would be bad news for all Americans.”
Another striking problem with Wolf’s plan is simple math. Wolf Biden advised the administration to “ask Congress to approve পরিবার 1,100 per family payment for a four-month high price and an alternative for the president to give a second or even third check to low-middle-income families. For an additional four months” if the price is high.
$ 1,100 per family may not seem like much, but the cost estimates for Wolf’s plan are really staggering.
Statista estimates that by 2020, the number of households living below the poverty line will be about 7.3 million.
The total cost of Wolfe’s plan is therefore conservatively estimated at $ 8,030,000,000 – and that number does not even include middle-income families or households. A “second or even third check” will balloon the total cost to a whopping $ 16,060,000,000 and then $ 32,120,000,000 respectively.
Conservatives are being attacked. Contact CNN at (404) 827-1500 and demand a report on Biden’s responsibility for the American energy crisis.