In many ways, Rep. Ro Khanna is a far-left progressive. But the California Democrat also happens to be honest, and more prone to moments of genuine introspection than most in his party. Such was the case when Khanna appeared on Fox News on Sunday and acknowledged one of the biggest causes of our inflation woes that—because it’s politically inconvenient—most Democrats have refused to admit.
“I agree that there’s inflation, prices are up… there are two reasons for that,” Khanna said. “First, the Federal Reserve had quantitative easing for way too long and that was one of the main, primary culprits of this. They didn’t anticipate the inflation, monetary policy is largely determined by the Fed.”
"The Fed had quantitative easing for way too long… and that was one of the main primary culprits of this [inflation.]"
— Brad Polumbo 🇺🇸⚽️🏳️🌈 (@brad_polumbo) July 25, 2022
What the congressman is referring to as “quantitative easing” is loose monetary policy, or, crudely simplified, the central bank’s printing of new money. As I’ve previously explained for BASEDPolitics, the Federal Reserve created trillions of new dollars out of thin air to “stimulate” the economy during the pandemic. This had the inevitable effect of making the dollars currently in existence less valuable.
But most Democrats have completely denied this reality, instead deflecting blame to scapegoats like “corporate greed” that most economists reject as an actual cause of inflation.
Well, to acknowledge that printing money willy-nilly causes inflation cuts against newfangled progressive “economic” theories that suggest the government can spend however much it wants by simply printing the money.
Khanna deserves kudos for at least not descending that far into unreality.
The Democrat congressman also made the point that while recent runaway government spending may also be driving inflation, (it’s partly why they have to print so much money) that spending also started under former President Donald Trump, and at the very least the initial “stimulus” bills were also pushed by Republicans.
Khanna is not wrong. Intellectual honestly demands that we acknowledge his point.
Of course, Democrats did make matters much worse after President Biden took office, pouring more fuel on the fire with a wasteful, ineffective “stimulus” bill (The American Rescue Plan) pushed through along solely partisan lines. So there’s not a complete equivalency here, even if both parties have some blame.
Regardless, inflation is crushing American families. And we won’t fix it until more of our elected officials are willing to set partisanship aside and grapple with the mistakes they’ve made.
At a time when the Biden administration continues to try to gaslight the American people on our economic realities and their causes, it’s nice to see one man stand up and tell the truth.
— Hannah Cox (@HannahDCox) July 25, 2022