Just as go-go boots have come back in style, and the President not running for re-election, so has guns and butter economic policy. Joe Biden is no LBJ but his administration has passed roughly $4.5 trillion in new programs, starting with $1.9 trillion American Rescue Plan Act, Infrastructure and Jobs Act, CHIPS and Science Act, Inflation Reduction Act, and so on. This spending on top of the trillions of dollars the Great Society programs cost.
In addition to that butter, the U.S. is providing guns for two wars, in Ukraine, and Gaza. In April, Biden signed a military aid package worth $95 billion that will arm Ukraine, Israel and Taiwan. The bill had bipartisan support with 79 senators voting yes.
They taught us in school there is an opportunity cost to produce guns versus butter and vice versa. But a complicit Fed and Treasury make both not only possible, but the norm. These boots never go out of style.
Bi-Den put us back into the ‘60’s again with his rocket like spending on, first, COVID19 recuperation money and then the Ukraine hundreds of billions. That produced the raw inflation that drove people to the return of the Orange Man. Now Orange Man and his crew are going to take the state to task with their own chainsaws for pruning away the state. I hope they are successful at removing all the deadwood and trimming the tree of liberty back into health. There might just be some push back, but like the Colombians, it may not be as effective as they thought their push back could be. It seems Orange Man has some support this time around, a lot of support.