Economic Chaos:
Inflation is hurting every American…
It’s hurting businesses…
It’s hurting the economy…
It’s causing the price of everything to go up…
And it’s the result of government overspending.
Biden/Harris’ misguided economic policies have triggered negative consequences, including high inflation and increased national debt.
Their economic theory is deceptive and fantasy economics. The modern economic theory they follow is irresponsible deficit spending… and when we have stagflation or signs of a recession, they do the opposite of what they should be doing.
For example, one reason their economic policies failed is that they followed the “Sahm Rule.”
It’s an indicator that looks at signals related to the onset of a recession.
Part of Sahm’s “fix” for a recession is for the government to give out “stimulus” checks.
However, this has the opposite effect and actually hurts the economy further. Increasing government spending devalues the dollar (making the value of money less valuable), increases the debt and deficit, causes more inflation, and creates more of a recession… the very thing it purports to fix.
By following these failed policies, the Biden/Harris administration has set the stage for further economic instability by advocating for immediate and excessive government spending in response to inflation and potential recessions.
Here are five reasons why the Sahm Rule has failed to prevent economic downturns and actively contributed to America’s current economic crisis.
1.) Who is Claudia Sahm?
Claudia Sahm, a socialist economist and former top economic advisor to President Obama, is the architect behind the so-called “Sahm Rule.” This rule, rooted in flawed socialist ideology, purportedly predicts recessions based on past unemployment trends.
Sahm is currently the Chief Economist for New Century Advisors and the founder of Sahm Consulting. She previously served as director of macroeconomic policy at the Washington Center for Equitable Growth, an organization known for its pro-socialist economic stance.
Before that, Sahm spent over a decade at the Federal Reserve, working her way up to Section Chief. Her focus has been on macroeconomics and household finance.
Sahm is most widely recognized for creating the “Sahm Rule,” an indicator the Federal Reserve uses to predict recessions.
So far, it’s not worked out very well.
2.) The Flawed Sahm Rule
First introduced by Sahm in 2019 as part of a policy proposal for the Federal Reserve, the rule evaluates the business cycle in real-time.
The rule states that a recession begins when the three-month average unemployment rate increases by at least 0.5% from its 12-month low. The rule is based on monthly unemployment data from the Bureau of Labor Statistics (BLS).
3.) 3 The Legacy of government overspending= Debt and Inflation
Federal debt has soared to a staggering $35 trillion, with a projected $2 trillion deficit this year alone. Such reckless fiscal policy has fueled unprecedented inflation rates. Adding to the economic malaise, the Federal Reserve’s ill-advised interest rate hikes have further crippled economic growth.
4.) A False Alarm
Recently, Wall Street reacted amid fears sparked by a feeble U.S. jobs report and revisions and rising unemployment. Even Sahm acknowledges the rule’s shortcomings, attributing recent economic fluctuations to labor supply shifts post-pandemic, including a surge in immigration.
5.) What is a Recession?
A recession, characterized by two consecutive quarters of negative GDP growth, signifies a period of economic contraction marked by rising unemployment and diminished economic activity. In severe cases, GDP can plummet by up to 5%, underscoring the grave consequences of misguided economic policies like those advocated by Sahm.
Claudia Sahm’s socialist economic theories, epitomized by the flawed Sahm Rule, have proven disastrous to our economy and to people’s wallets.
Sahm’s policies have contributed to inflation and created economic decline by promoting excessive government intervention and unsustainable spending, jeopardizing America’s economic stability.
Action Steps:
1) Pray for our country.
2) Volunteer, donate (money/time), and vote to replace these radicals in Congress, the Senate, and the Presidency.
3) Get my new book, The Great Deception: 10 Shocking Dangers and the Blueprint for Rescuing the American Dream.
In Chapter 2, Danger #1: The Road to Socialism—America’s Epic Battle Between Collectivism vs. The Individual, The American Dream teeters on the edge as Chapter 2 of The Great Deception explores the profound impact of this war on the core values that built a nation. Are we on the precipice of surrendering our individual freedoms to the siren call of tyranny and socialism?
Chapter 2 “The Road to Socialism” takes you on a riveting journey through history, unraveling the intricate tapestry of political ideologies shaping America’s destiny—Socialism vs Capitalism. Witness the pivotal moments where the battle lines were drawn, and ideologies clashed in an epic struggle for dominance.
Join the ranks of those who seek to preserve the essence of liberty and individualism.
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The Great Deception exposes lies, myths, and distortions from the media and politicians.
It gives you answers and solutions to turning America around…
It allows you to share these dangers and a solution to cutting through the deception with friends and family.
It exposes under-the-radar and little-known behind-the-scenes reasons America is falling backward and how to make it move again.
Click here to get The Great Deception – Craig Huey
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