Newt Gingrich says that the people who will be hit the hardest by Biden’s policies are the poorest Americans. It’s not hard to follow the math.
Even AOC and Maxine Waters might see it but never admit it. First of all, the massive borrowing to pay for Biden’s massive spending bills will create inflation and lead to the devaluation of the dollar. Who would be hurt the worst by that? The poor of course.
Then when you take Biden’s plan to raise corporate taxes from 21% to 28% and what do you suppose will happen? First of all, companies will have to increase their prices to cover the additional costs. Corporations never pay tax increases, you do.
They will also have to lay off workers besides freezing new hiring. Whose jobs will be lost? The poor. The ever-increasing cost of gasoline and diesel will also drive up the cost of everything that has to be trucked which of course is almost everything.
Gingrich said:
“So every person who hears us today, when you go out to fill your gas tank and you notice that you’re getting less gasoline per dollar, that’s a Biden hidden tax.”
“It will happen with electricity. It’s going to happen with food across the board. We are on the edge of a massive inflation and the Democrats’ answer is print even more money so they get a bad job’s number on Friday and they are saying immediately, ‘Oh, we need to spend another couple of trillion,’ which is exactly the wrong solution if you want the economy to be healthy.”
Gingrich said the relationship between government spending and inflation is “a basic rule of economic history” that was a reality in in Rome “and other ancient civilizations.”
The former House speaker said that if citizens resist further tax increases, governments make a conscious decision to “make up the difference is through inflation, through cheapening money by printing more dollars in our case by literally cheapening gold and silver coins.”
The Biden administration says the president’s latest spending promise will cost around $1.8 trillion. That is on top of his $2.25 trillion American Jobs Plan and $1.9 trillion American Rescue Plan. Biden claims the spending will be financed through a tax on those making $400,000 or more a year.
Media baron Steve Forbes has also warned that Biden’s stimulus packages will inevitably produce hyper inflation in the U.S. economy.
