Mazzei Minute: 10/22/21
The chief architect of a President’s finance strategy is the U.S. Secretary of the Treasury. We’ve had some great ones like Washington’s Alexander Hamilton and Reagan’s James Baker. Current treasurer Janet Yellen, however, lacks wisdom and prudence.
Yellen has recklessly approved trillions of dollars of additional federal spending after the economy already stormed back from the pandemic shutdown. She has green lighted the very dangerous idea of Modern Monetary Theory, which espouses unlimited government borrowing for social and climate spending goals. All the while, she has failed to tackle the looming catastrophic pressures of Medicaid and Medicare which are soon going broke.
To make matters worse, as Biden’s policy negotiator with Congress, Yellen has endorsed massive tax increases and disincentives to work. She has also failed to warn Biden that restraints on energy production will cause oil and gas prices to go up. Persistent inflation beyond just a few months is now the result. Biden and Yellen are responsible for the 5.4% increase in the Consumer Price Index (CPI), which includes significantly higher prices at the gasoline station.
Americans will not be pleased to see their high wages from the current strong recovery built on the Trump Tax Reforms get gobbled up by Yellen’s inflation legacy. If Biden would like an alternative to begging OPEC nations to pump more oil, he should start by firing Janet Yellen.