WSJ: "Perfect storm" surrounds the US economy, the Biden administration is under immense pressure (HOT)

 The WSJ believes that the Biden administration needs to make drastic changes to prevent inflation from getting worse.

Controlling inflation is the only focus

In the past time, a perfect storm has besieged the US economy. Covid-19 has disturbed the supply of the US economy. The Federal Reserve kept policies loose for too long. Finally, the Biden administration has taken many unreasonable steps, such as injecting $ 1.9 trillion into the economy that is facing many supply difficulties, issuing rent checks so that people can live without worry. need to pay, tighten oil and gas production amid supply shortages and skyrocketing prices, introduce a series of regulations that kill growth or cause budget deficits.

Most Americans are having a hard time making a living. Gone are the days when the Fed focused solely on monetary stability and left the social policy area to elected governments. In addition, the Biden administration must stop nominating dovish experts to the Fed. Central banks need tough economists.

In any crisis situation, the first 3 principles are focus, focus, and focus. The domestic focus of the Biden Administration must now be on inflation. With inflation averaging 8.5% nationally and reaching 10.4% in Utah, it's really taking a toll on everyone's lives.

In fact, it is those who are poor or have very little savings who are hardest hit by exponential price increases. In short, what the economy needs is for inflation not to last too long. Therefore, President Biden should postpone the plan "Building Better" - Mr. Biden's campaign slogan, for the immediate goal.

Solutions for the US economy

To remain internationally competitive and reduce dependence on foreign countries for products such as rare earths, critical minerals, and pharmaceuticals, the United States needs to ease regulations that exist throughout the economy. Redundant regulations hinder productive businesses and delay people entering the workforce.

America needs to focus on increasing domestic self-sufficiency with key inputs in both industry and agriculture, including metals for batteries and other critical components. The government can speed up domestic mining by speeding up the speed of licensing for businesses operating in this field instead of taking 10 years to get a new mining license as it is today.

In addition, the US needs to increase domestic oil and gas supplies. Please stop oil and gas businesses, even mines can't drill when the government doesn't allow it. The construction of new pipelines to transport oil and gas domestically is also still very important.

To straighten the supply chain, the Biden administration must remove existing bottlenecks at ports and build new inland ports.

It is also important for Congress to pass a budget to reduce the deficit. Politicians tend to believe that economic performance can be achieved through the initiation of new spending programs. However, spending more is probably the last thing America needs. Instead, reducing spending would be an achievement.

President Biden must also find a way to stem the tide of illegal immigration while accelerating legal immigration. New Americans who can immediately enter the workforce should be given priority over immigrants for whom the US Government has to spend more money.

Without more visas for immigrants who can work in agriculture, hospitality and other less-selected sectors, crops will not be harvested and goods and services will decline dramatically. unnecessary.

In addition, federal visa quotas may be developed based on the requirements of states, who know their labor market better than the Federal Government.

America must create incentives to encourage worker participation in the labor market. At the same time, it is necessary to remove policies and supports that make people not want to go to work. "Safety nets" should only be made available to those who really need them. Finally, the reduction or elimination of tariffs, except for those that serve foreign policy purposes.

A series of priorities also requires a new set of regulations. Therefore, President Biden should remove a part of current advisers to choose to surround himself with people who want the economy to work again.

For the upcoming midterm elections, remember the mantra Bill Clinton said in 1992: It's all about the economy. The American people need a strong economic leader as President.

Reference: WSJ