As inflation rages on we explore just why democrats have embraced the precise positions that, through gasoline on the fire in the first place, I mention roses the benchmark, Show me Eventually, I showed sponsor may express bbn protect our online pansy today. Express Bbn, dotcom slashed by inflation continues to reach out of control by an administration continues to say that everything is going to be hunky dory by most economists, estimated, to be well into next year, before inflation really starts to hit the rates americans are used to, namely that two per cent of the federal reserve aims for asthma the vital ministrations blamed everybody except themselves for all of us, but here is the thing. The inflation is part of the theory. The Democrats embraced the embrace all of the fiscal and economic prerequisites for inflation. The definition of inflation is too many dollars following too few good when

jack up government spending when you recommend that the federal reserve pursue easy monetary policy. The predictable result of this is that you end up with inflation unless we believe that this is some sort of like random thing that just happened to democrats. No, it isn't. This has been embedded in their most cherished ideals for a very long time. One of the weird It's about Joe presidency is that he was nominated based on the fact that it was not Bernie sanders and that it was not always with worn and then once you became president, he decided to pursue exactly the same policies. The Bernie sanders or elizabeth worn would have pursued. so to understand. What's happening right now, you sort of have to understand what bernie and elizabeth worn were saying way back in hey, meaning like twenty nineteen, twenty twenty. So I want to take it in the time machine back to june twelfth at twenty nineteen, when Bernie sanders gave a big speech about democratic socialists. Which sounds a lot like build back better. If you listen what he actually says, the government ought to do. It sounds exactly like build back better, so is Bernie sanders circuit june. Twenty nineteen, this the major policy speech, the media, aided avi, was covered with stern

recommendations by box in the new york times? was Bernie announcing what democratic socialism really meant. We must take the next step forward and guarantee every man, woman and child in our country, basic economic rights, the right to quality healthcare, the right to as much education as one needs to succeed in our society, the right to a good job that pays a living wage

the right to affordable housing, the right to a secure retirement, the and the right to live in a clean environment, and that is what I mean by democratic socialism. The right to have a unicorn that craps gold, the right to have one type of pudding is not very good, but we'll have a lot of it: the right to stand in the bloodline, many things, many thanks to the unbelievable album and the crowd goes wild. Well. The question, of course, is how you pay for all of these. All right? What? First of all, you have to force people to do things. They don't want to do, because if you have a right to a service with someone else, Dana have a duty to provide you that service. That is problem number one, but from a fiscal point of view, the answer is, somebody has to pay for it. Do they have to radically raise taxes, which is something the Bernie sanders, hasn t proposed or

you can have the print in enormous amounts of money, and it is no shock that the new yorker ran a piece august twenty nineteen titled, the economist who believes the government should just print more money seventy held a senior economic adviser to Bernie sanders and professor of economics and public policy had stony broke university is popular That economists, almost definition. We are not filmmakers, trail her with as she goes on international speaking tours and once sold out a basketball arena in italy. Kelson is before most evangelist fringe economic movement called modern monetary theory, which argues in part that the government should pay for programmes requiring spending like blue green new deal simply by printing more money. This is a polarizing idea. This spring it kelson spoke whilst regional future of everything festival on that as a journal. Staffer introduced countenance an economist with an idea that will either solve the world's problems or send it into ruin. She made a face and then on stage. So what actually does she say well, adherents

M m t. Imagine a world built on empty principles in which the government provides guarantee jobs, healthcare, affordable college launches, queen infrastructure projects to replace crumbling highways, airports and bridges kelson, who does five interviews per week, plus lectures and speaking. Eggs in conferences is more than anyone else response for building empties digital army. So what really is empty. Well, it means that we just spend money and don't worry about it. A so called and here's a lot of concerns but empty. The basic idea of modern montera theory is we spend a lot of money? People continue to buy our bonds cause we're still the best bet on the block and until then ensure anymore. We can just continue to spend money and there will be no effect on inflation, so into the new yorker again august, twenty nineteen. She is the chief economic adviser Bernie sanders. What helped enough Here is the same concerns about an anti mostar. Inflation how'd. You know

it becomes in bobwhite, which printed so many zimbabwean dollars that inflation peaked in two thousand and eight at an annual rate of ninety six trillion percent, never according to kelton under mm, The focus is sustainable inflation, whereas this Traditional was worry about the deficit and don't consider inflation at all. Doesn't empty them, require accurate forecasting of inflation. Risk yes, and counting can see the festival, the models are imperfect, but we can do a pretty good job a government spending she believes is responsible for just a small part of inflation. Killed him believe that empty is a new framework but is buried it non old ideas buried in forgotten in the work of foundational economists hey, so she was pushing the idea that you could just basin We spend money, no problem. This is again twenty nineteen The current economic conditions will pretty good for an anti in Japan. After our high in the interest rate, is set at less than zero. The economy is now no calamity when congress past attacks gunning twenty seventeen, this. Yo predicted there be a jump in interest rates caused by their deficit. This has not happened.

Still most means from economies. View and anti is the fault of the magic money tree, while even polychrome had thought this. This is bad idea, but most democrats had started to circulate around these ideas, Elizabeth Warren, who was sort of a warmed over Bernie Sanders devotee? She gave a speech in december of twenty eight nineteen at a college called ST anselm.

And should have a couple of things one. She said the same stuff. The burning said we should spend an awful lot of money. Her was elizabeth horn, circa December twenty nineteen reagan had a wrong. Our problem isn't big government. Our problem is a government that has been captured by the rich and the powerful government could help growing economy could create opportunities could support small businesses in entrepreneurship, but instead we have a government that works only for those at the top reagan like to talk about freedom, but real freedom is a living under the thumb of a handful of billion ears and giant corporations. Real freedom is live

and deep in debt, one health scare, one broken transmission away from disaster. Real freedom is watching, while more and more opportunities gets snatched up by the rich and powerful real freedom comes when a strong government enforces fair rules and winds. Smart investments give every american the opportunity to prosper, but here's the thing, Elizabeth Warren didn't just stop with the warmed over Bernie sanders rhetoric. She then talked about what you need to do at the federal reserve. So the idea was easy. Money was, can make all this possible you blow out the federal reserve's Having of assets on the open market in june more money into the economy, this will make magic happened.

was elizabeth horn. Again this is december. Twelve, twenty nineteen, approximately four months before the economy, completely cratered, and about a year and a half before inflation became a serious issues. Elizabeth one. We will point a federal reserve board that believes in full employment that recognizes that insulation fears have been overblown for years and someone who is willing to let wages grow. That's unbelievable nightclub is unbelievable. Elizabeth born december? Twenty nineteen, we need federalism. Members were going to explode. The spending We are going to recognize that we don't have to worry about inflation, who cares about inflation and who will let wages grow? Okay, what the wages have actually declined because of the inflationary policy of the federal reserve, that was Elizabeth warren great plan person. Remember this and she was running. I know we ve forgotten about. We blocked it out from our memories than it was before was a revival candidate, but there is a point was actually leading that race whenever we realise that she was a charm, was half just like kamel Harris and

and then she fell apart. But for a moment there she was the media's beloved can't they loved her. She was the one with the plan she had a plan for that. Her plan was exactly the plan that brought about inflation. So Joe Biden enters office, after spending the campaign not being bernie and not being elizabeth morn, and he immediately rams through this court of covert relief bill now, as you remember this past in march of twenty twenty one, you remember that by this point The vaccines were already being tranche out en masse to we're coming to the end of carbon, and everyone knew it. It was Are you gonna be that everybody who won the backs could get of act as if this is true by essentially april of twenty twenty one, Whose bashing, through with no republicans what none tat, is all democrats on this, whose bashing, through one point nine trillion dollars in covert spending and in the process not shockingly, he was praising Bernie Sanders Bernie whose policies these are all based on is what happens when you are socialist run. The party so here is binding, using bernie ass? He passed One point: nine trillion dollar chronicled stimulus

That merely stimulated inflation, I promised the american people is becoming an over use phrase that help was on the way, but today with the american rescue plan now sign in law we delivered on that promise and I don't mean I've delivered. We delivered and I want to say to Bernie Bernie stepping up and making the case why this was so transformational made a big difference and how a lot of people voted and then, of course, If he blows, he came out and declared the corporate relief bill. A triumph here was the speaker of the house of representatives. Let me say this about my members: chairs were dazzling and their own work intellect integrity, imagination for the american people, working with their senate with their senate. Colleagues, I say they're, beautiful diversity of our members, and I say to them our diversity, is our strength, our unity.

is our power and in this bill our diversity to protect everyone in our country. To end the disparity in access to everything that the bill presents, our diversity was real, acted in the house in the senate in that policy, but our unity on behalf of all of the american people is what may this such a try, you own it you own. This is all Democrats is nancy policy, with the main mask on each them amazing amazing! Stop again, Joe Biden went around and he trotted around talking about the magic of the american rescue plan, and he talked about how much money twenty, whose banning this was. The key component was how much money he was spending so he talked about how it was gonna get economic growth for the internet, massive economic growth is going to raise wages. It was going to rebuild the backbone of the economy. Who was Joe Biden again praise the one point: nine and dollar planets completely unnecessary. The economy was already in a state of recovery. Here was Joe Biden. It will

the right economic growth for the entire nation. That's why your economists left right and centre support this plan. Evil wall street is agreed. According to the movies the end of this year. This law will spur our economy to create seven million new jobs and does one more thing: It focuses on rebuilding the backbone of this country, working families, the middle class people built this country name, He said you know it's gonna, be a big part. This setting a hundred million checks or direct deposit. Not that's called that's called helicopter money, as inflation is the basic rule that inflation is there If we live in a town and their only sure number goods and a helicopter arrives and all the houses drops a hundred thousand dollars and everybody backyard. Somebody rich now know the prices of those limited goods just reflect I can ever be now- has a hundred thousand dollars in their pocket. That's all that's exact

Joe Biden was praising was the helicopter cash bernie sanders and elizabeth worn monetary policy right here one hundred million checks going into the like its and or direct deposits going into the pockets of americans, on the way to a million more millions, more america s real progress by real progress means that wages were about to decline significantly over the course of next year. Is a vast ford to ike may of twenty point When you pull my had, they started to pick up on the second inflation heard you picked up now Elizabeth worn still out there saying we need more spending. This is nothing guys. We need our three trillion dollar bill back, but maybe more than that, maybe seven eight triple a who knows: there's no limit. After all, modern monetary theory says you keep spending until there ain't no spending to be done. Here's Elizabeth Warren, certain made twenty twenty one. Senator capital has introduced a bill. It's about. I think five or six hundred billion dollars per binds transportation infrastructure bills about two trillion.

Would you be opposed to any sort of compromise between eight hundred billion or two billion? I'm not going to start by negotiating against myself, but understand this. What is going to take to repair the roads and bridges in america? One is going to take to make sure that not just part of america has access to broadband, but all of america has access to broadband and what it's gonna take to make sure that we have universal child care, child care that is affordable, available and high quality all across this, nation- that is a big ticket item, and we ve got to make sure that we put enough resources in to make that happen. I think that the president's budget, quite frankly, doesn't go quite far enough. The bus doesn't look like our enough. It didn't go far enough. The prison by the way had proposed a say: trillion dollar budget sixty. didn't go far enough. It literally the next day the questions are already happening. This in may of twenty twenty one well over a year ago, and the inflationary started to set in so Jen psaki. Who was then the President secretary for the white house shoes?

that inflation so not transitory, no big deal the federal reserve. I would point out to them too. big to or provide analysis or speculation on anything leads to inflation or the impact of certain external actions. I will say, as we said in here before, but will reiterate that, of course, we take the possibility of inflation quite seriously as actions that have been taken to date or proposals that have been met. Aid must economic out analyse, had believed that it will have a temporary, transitory impact, but in terms of analysis. On current events, I would point to the federal reserve: transitory, very transitory. Ok, by July Joe Biden was still saying that was trends towards this july. Nineteen, twenty twenty one our economy has come roaring back. We see some price increases Some folks of raise worries that this could be a sign of persistent inflation. But that's not our view. Our experts believe in the data show

the most of the price increases we see in our work expected and an expected to be temporary reality as you can't flits global economic life back on and not expect this to happen as demand returns. It's gonna be global. Supply chain challenges we face net and semi conductors, which are used in automobiles. That global shortage has slowed vehicle production, trade temporary spike in car prices, the real challenge. My illustration to everything we can to address these transitory again. These disruptions are temporary, temporary, transitory. more inflation in just one second, first, my kids are getting ready to go back to school in just a little while they're excited to go back to school, but many kids aren't because a lot of kids don't where their meals are gonna, be coming from this semester. Well, that's why good ranchers has made their mission to donate one

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here, the federalism is messaging. On inflation has been consistent. This year's surges, transitory inflation, will soon return a closer the central bank's two percent target, yet look more closely. And it is clear, officials are turning less sanguine and that explains grew an eagerness to start raising interest rates, west timber. Long before supply bottlenecks emerged, the median forecast by the fed was for core inflation in twenty twenty two and one point: eight percent, every few months since that they ve nudged up the forecast released again in september twenty twenty one they saw corn next year. At two point: three percent right now court inflation annually in the united states is probably be closer to five or six percent, so they just happened be off by you, know everything and by the way they wouldn't let go october told her sixty thousand twenty one treasury secretary general Ellen would also help preside over the federal reserve before she was treasury secretary under Joe Biden. She said, inflation was transitory. This october twenty twenty one we're on

six million job short of where we were before the endemic, which means a lot of people who still need jobs on the other. And many firms are finding it difficult to higher, we ve had extraordinary shifts in the pattern of demand away from services and toward goods, and I know the feathers trying to sort through the implications of that supply. Bottlenecks is developed that have caused inflation. I leave that their transitory, but that doesn't mean they'll go away over the net months is transitory, trent vocational by November twenty twenty one drawn power. Head of the federal reserve, who she never should been reappointed for his position by the way he admits that he got the inflation wrong and that they blew it. So while this admit, but they didn't blow it because they thought that inflation would jump they bullet because they had an actual

economic dedication to the idea that more spending in loose monetary policy are good. These are good their effectively away to reach democratic social. The idea here is drawn pal admitting he got inflation wrong in november twenty twenty one and here's where the the worm really starts to turn, because it's kind of amazing that this administration they could claim it transitory and we got it on. You know: it'll be okay, it'll be okay, but once it became clear that it wasn't. Ok, that's when you expect them to take their foot off the pedal. wrong. They decided there once ram their foot through the pedal, therefore, that there We are now on the ground like fred flintstone. It's amazing

november toiling Jerome powell now acknowledging that he got it wrong areas. I think it is fair to say that the the experts to have been advising you about the future rate of inflation have pretty much the same credibility. The as those of late night, psychic hotlines, you see on tv, so I think what we missed about inflation was the we didn't predicting the supply side, problems and those are highly unusual and very difficult. Ver non linear, and it's it's really hard to predict those things, but that's really what we missed and that's why all of the professional forecasters had much lower inflation projections? Okay, but everybody recognized by the end of two thousand twenty one that inflation was now persistent, that it wasn't transitory anymore and yet, in march,

twenty twenty two Joe Biden and proposed a five point: eight trillion dollar budget five when eight trillion dollars. including massively higher taxes on corporations and the wealthiest americans. So a recipe for stagflation, because again this is part of the Bernie Sanders agenda is part of the Elizabeth warren agenda. Is part of the Joe Biden agenda is part of the democratic agenda writ large, more spending, more regulations, more taxation more federal reserve, loose monetary policy and many wonder why inflation happened. According to the new york times, binds proposed budget, which of course is never been a pass, but it's too wish list of items. it was essentially design to raise the spending and your mind admitted as much. In a state of the union address march. First, twenty twenty two he talked about fighting in play and his answer to fighting inflation was wait for it. Wait for with more spending because its

he's more spending again, it's an ideological thing with these folks. This is why, if they get reelected november, it won't matter what the economic circumstances are. The answer is always the same. You fight inflation by spending more money, and then you fight, inflation by many more money, if I'd ever by spending more money, as it turns out you fight with your wife spend moment. Like always, everything is what bike by spending more money. Could you just gotta spend more money. Here is Joe Biden in march of twenty twenty two, and not all that long ago. Talking about the way to fight inflation is to spend more money. One way too in places, drive down wages and make america's poor. I think of it, or idea to fight inflation lawyer com, not your wages, more cars semiconductors in america, more infrastructure! innovation in america more moving faster and cheaper in america, or jobs. Where earn a good living in america.

Instead of relying on foreign supply chains, let's make eighty eight america increasing the productive capacity of our common economy. I call it building a better american my plan to fight inflation will lower your cause to lower the deficit ray lower costs and laws that have by spending more money. I mean that's, hey fight inflation is by spending more money is again. It's all part and parcel of the broader economic agenda. Here didn't stop right. Here I mean people to judge are much loudest. Protective transportation, whose main contribution has been to not do his job. In march, like two weeks later, you saying that wits denmark has, of course, if you spend more, reduce the deficit, because you know that's that's how it spending in deficits, work or something. The government spending is doing the exact reverse reduced

the national debt is not inflationary. How does it work? How would you make that statement in a logical way? Well, I mean, first of all, if you look at our fiscal, policy. It is true and amazingly, a lot of people. Don't even know this, that the deficit has gone down and down by a a remarkable amount. So I think part of it is an expression of that. I think I'll also part of it is pointing to the fact that some of the investments that we make help with inflation- that's definitely true with the infrastructure investments right, because we know how infrastructure is related to supply chain supply chain is related to inflation. It's one of the reasons why you know when there was this, this big fight over whether the infrastructure bill was going to be a problem for inflation, yet a lot of economising, actually this and the build back better vision taken together. This is going to ease inflationary pressures since they are still committed to this. It eases inflation to spend more money, more money spent media ease inflation. You fix all the problems by june

of this year. Finally, JANET allege treasure is emitting. She got inflation wrong, so here she was not acknowledging oh yeah, yet oopsy whoopi, Think I was wrong, then, about the past inflation would take their have unanticipated and law. Shocks to the economy that has boosted energy and food prices and supply Why bottlenecks that have affected our economy badly the iron at the time I fully understand, but we recognise set now, but fight Five days later, she still defending the pandemic spending five days later that their ideologically committed to the idea that reality does not exist. All that exist in theory the modern monetary theory is still alive and well inside the democratic party, here's johnny Ellen defending the pandemic spending, despite the bag that we have had record highs in inflation month on month, pretty much every month year,

We're talking like forty year highs and inflation, and here's JANET yellen's still defending the policy, we're seeing high inflation in almost all developed countries around the world and they have very different fiscal policies. So it can't be the case that the bulk of the inflation that we're experiencing reflects the impact of the eight you are pay, so it was always it was a causal factor. Would you say that two trillion dollars when we had a trillion are unspent? So the do the quick math here it's about three trillion dollars,

that was put into this economy from december through march of two thousand and twelve. I guess the way I see it is when President Biden was inaugurated. He inherited an economy with very high unemployment and the congressional budget office and other forecasters were envisioning that this could last for a very long time, and we had to address the possibility that this could be a downturn that would match the great recession. Nobody was saying that in the aftermath, no one by january of two thousand twenty one was saying that no one was then ideological commitment to spend one, so they failed. And then they blamed everything else where they blame Putin. It's buttons price hike and prudent. Did it's all of that that that's what's created all this problem Then you ve gotten Joe Biden, blaming supply chains. Right here is

I didn't last month blaming the supply chains again. Not the supply chains is bad fiscal and economic policy. For years on end in the middle of all very predictable supply chain constructions, given the fact that we had a global pandemic Economic policy generally makes itself felt during crises, and yet they keep pushing they keep pushing. So here is Joe Biden last month. Blaming the supply chain still there are nine nine major ocean liner shipping companies that ship from as to the united states, nine, they form three consortium These companies have raised their prices rise. just one thousand percent, so everything confirmation that they go united, some presentiment stuff confirmation, people, Why to home trying to make it pay check the paycheck wonder where, like what in god's name, do nine understand very well, nine shipping companies have to do it

most everything you do and everything from what what you're eating what you have in the drive to which her what you need in your home and related to supply shoes which come from a glad you banner a new guy, but here the thing is even around or the former economic adviser to Barack Obama said quote the both of us problems are not the products are the product of an over stimulator economy, not the cause of it. sure there's been some covered, related challenges such as health related work or shortages in factories, but Most of our supply problems been homegrown, americans have resumed, banning freely along the way they mean. Creating shortage is akin to those in a shop in milan black friday, blaming inflate in supply lines like complaining about your sweater, keeping it too warm after you've added several walks to the fireplace correct, correct and yet Joe Biden there come there. I keep saying it over and over because it's just You have to understand that, in order to understand my leaving these people in charge of the country's a really bad idea, there ideologically committed to an idea that is likely to resign.

In precisely the thing they said would not happen because that's the way of the world and the fact that there have been mitigate, factors against inflation. The past does not mean that this time, there's not going to be a predictable result, very bad, predictable policy and yet job is continuing to argue today that we need more spending and we're still put for this inflation reduction act as inflation reduction act is hundreds of Billions of dollars in new spending, Joe Biden, he'll once more spending than that and are higher in their own supply. They still believe that this is going to some for the economy and fix the economy and fix inflation. All the rest did they have only when you have only a hammer, everything looks like an eel and their hammer is. Spending in europe. still arguing today that more spending is gonna cut inflation. This bill is fighting inflation Progressive leaders like centre elizabeth worn said, quote this: This is a bill that truly is about finding a place. in bringing down the costs for families and putting our

country on a sounder economic food. Invest three hundred and sixty nine billion dollars granted. I call for five hundred plus but invest three hundred and sixty nine billion dollars to secure energy future and redress climate crisis, bringing down family energy bills by hundreds of dollars by providing working families, tax credits. It gives folks rebates by two by new and efficient appliances to whether eyes their homes tax credits for heat pumps, rooftop, soul, men. I wasn't there the simple fact that this idiot is citing Elizabeth war and as the person whose talk now bring down inflation again, I returned to the web, in which Elizabeth worn literally said in December twenty nineteen. We need looser federal reserve monetary policy, because the threat of inflation is somehow exists, written he's, citing her as any gun edward moaningly, quarterboat inflation reduction it so, in friends and family start asking you questions about. You know things like.

do democratic, really responsible for the inflation. Why won't lounge for Democrats, I mean, after all, they did this all answer. It surprising it was unforeseen. None of that is true. This is into the cake they ve been promoting this policy position for years when the effects of the policy position become here then they run immediately from those emblem external factors, but they are to blame We should remember that when they go the ballot box in november already evacuated to know the dish Content in the meantime, go check out. The michaelmas show that available right now, a daily wire plus I'm bench. Brothers is the bench shapiro show if you enjoy This episode, dont forget to subscribe to the shop, help spread. The word about the bench of euro show. That's a five star of you, ensuring the show with a friend were available on apple podcast, spotify, youtube or wherever you get your pocket and be sure to check out. Some of our other daily wire shows the bench show is produced by bradford Carrington, executive, pretty

jeremy boring supervising producer, math is glover. Production manager, polite asking, Associate producer, Savannah, dominguez morris editor, adamant, silence, audio myths are micro here and make up our as demography, fabulous, christina production coordinator, jessica, grant. The bureau show is a daily where production, copyright daily wire, twenty twenty two.