The first rule taught in any introductory Economics class is as follows:

• During an economic downturn, you cut taxes to spur economic development and to fight unemployment.

• During economic booms, you raise the taxes to coll off the economy and fight inflation.

So this brings me to the fact that Trump inherited an undoubtedly booming economy and a budget surplus from Obama. However, he rejected common wisdom. Trump eventually pushed to cut taxes during an economic boom. This means the economy was already running a budget deficit by the time the Covid Pandemic hit. The Trump administration also printed TRILLIONS of dollars for stimulus checks and fraudulent PPP loans.

Obviously, you’re getting what I am saying: Trump’s actions created the largest budget deficit since Bush and the 2007-2008 recession. All of this was and still is a recipe for inflation, and yet, no one ever talks about it. I see endless social media posts blaming Biden for the inflation and whatnot but why can’t we all just be logical and honest for a minute.

Further, in this little opinion piece, we give Trump the back burner and throw the possibility of this being Obama’s fault - so please calm down before you start MAGA fiends.

Where it All Started: Money Printing

I’m sure if you had a brain when the Fed began printing off money like lunatics, you questioned where the idea even stemmed from. Well, it actually all began in 2012 with the possible culprit of our modern downfall - Ben Bernanke…

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“We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time.”

Ben Bernake said.

However, the appropriate time came and went because the Congress and Executive saw that the Fed’s printing would permit them to run deficits without borrowing from debt markets. Such borrowing in debt markets would have driven interest rates sky high.

Fiscal Dominance

Fiscal dominance is when the Fed creates mandates for managing inflation and employment and those mandates are then subordinate to printing money to “monetize the debt.”

Terms like “monetize the debt” and “quantitative easing” are used in substitution for “printing money.” The Fed doesn’t want to tell us that we’re not in a "borrow and spend" nor a "tax and spend" policy, we're in a "print and spend" policy.

Nearly more than half of the 2021’s deficit was printed, according to last week’s testimony from Jerome Powell. Now, there is an attempt to unwind these policies. However, not so much at the “appropriate” time, but because the Fed’s back is against the wall.

How does Obama play into this?

Some can point the finger at Obama, to be honest. There were appropriate times to unwind from this money printing during his seated terms. Trump’s tax cuts for the rich was predicated on money printed and he tweeted for "quantitative easing" throughout his administration.

I'd have to go back to Obama. There were appropriate times to unwind this money printing during his terms. Trump's tax cuts for the rich were supposedly predicated on money printing, and he tweeted for "quantitative easing" throughout his administration.

Now we have Biden. Just a brief thought, but how does or how will the government propose to make up for the student loan forgiveness? The same place that the stimulus came from, hot off the Fed’s printing press…