Federal Reserve Bank of Kansas City President Esther George may not be a household name, but she knows a heck of a lot more about finances than either you or I do.
That's why the Biden administration is absolutely grief-stricken over how George described America's economy after trillions of dollars of stimulation by Biden's federal government.
"We are looking at still pretty low growth."
Exactly. We knew we would be.
Why is it that government liberals were the only people who didn't understand back in 2020 that just printing and mailing out money to undeserving Americans was NEVER going to work. The federal government never had that money to give out, it never existed.
They thought they could just print more with no consequences.
They were wrong.
Sure, things looked good at first as people were locked in their houses with nothing to do and spent their stimulus checks on keeping themselves entertained. It kept money flowing through the economy for a bit.
But things never got better, they never went back to normal.
That's exactly what we were saying when the federal government started printing all of this money.
That's exactly what Esther George is saying now:
"One of the things I think has been extraordinary to watch during this time, you had a lot of demand come in. So, the support from fiscal stimulus, from monetary policy produced a lot of demand. And yet we are looking at still pretty low growth. And we’re looking at binding constraints on supply and, in particular, looking at the labor market. And I think there, one of the things that will be interesting to watch unfold, I hope research continues to look at this is, we were focused, for the last two decades really, on, is it a demand deficiency in our economy. I think this time we’ve seen that there are some constraints on the supply side. And what structural — the nature of those might be I think is going to be worth keeping an eye on. And I think, longer term, will have implications for monetary policy’s role."
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