July 29 strongly confirms Biden is hell-bent on destroying the recovery. His tool of choice is ineptitude. As I’ve pointed out, on Inauguration Day, the new president was the beneficiary of rapidly increasing injections of amazingly effective Covid vaccines. An already growing economy could only go into overdrive with the spreading Immunity. Momentum was in place to carry us forward with zero input from the Biden team. All Biden had to do was sit back and enjoy the ride. Later in the year, when the memory of the Trump administration had faded, he could take credit for the good times. In any case, a good economy always helps the incumbent Administration.
Instead of preparing a carrot and stick program to overcome the vaccine reluctance the UK had experienced, the Administration has sent mixed messages from the J & J vaccine to the current mask advisories. This confusion is playing havoc with people’s ability to plan for the future. These puzzling missives are spilling into our economy.
The government reported the economy grew at 6.4% rather than the expected 8.4%—quite a miss. Further, unemployment claims rose by a surprising amount. A growing fear of the Delta variant has contributed to investment and hiring hesitancy.
The Administration’s almost $2 billion Covid stimuli extending generous unemployment insurance and adding childcare payments with no work requirement has kept many from returning to work. Lack of workers restricts supply. All that money is floating around, goosing demand while we aren’t producing goods. We already have supply dislocations coming out of the pandemic. All this has led to the classic scenario “too much money chasing too few goos,” for inflation.
Misreading or ignoring of data led to the present disappointments and threatened further damage. It is essential to get out ahead of the fear and confusion. When the trepidation comes from the top, it gets quickly out of hand. On ABC New York, they are looking at the possibility of 4,000 deaths a day in the fall. This prediction is wildly improbable. How can I say this? It’s because I look at what is happening. India, where the Delta Variant originated, had a big spike. The UK, which is a few weeks ahead of us in vaccinations, has significantly increased cases. However, both have topped out::
Instead of growing out of control, the virus appears to be running out of potential victims. Shots in the arm and natural Immunity have narrowed its opportunities. Is this going to happen here? Very likely.Continue reading