For the first time since the smothering lockdowns took effect in the early months of 2020, America has experienced two consecutive quarters of negative economic growth, satisfying the technical definition of an economic recession.

For many economists, what’s even more worrisome is the potential for a sustained slowdown in economic growth, also known as secular stagnation. In the debate over recent policy proposals, there has been ulasan film little discussion about the potential for exacerbating an already stagnant period of economic performance.

President Biden has now passed four major spending bills, totaling almost $5 trillion in federal spending. The Congressional Budget Office (CBO) projects that debt as a percentage of GDP will reach 110 percent by 2032, its highest point in American history. In July, inflation reached an 8.5 percent annualized rate, the highest we’ve seen in over 40 years. Even the booming labor market is beginning to show signs of attrition as the rate of job openings has begun to fall.

With this much federal spending and so little regard for its adverse consequences, something’s got to give, and that something is likely going to be the economy. If Biden’s policies continue apace, we could be marching toward a period of stagflation, defined by low economic growth and high inflation.

Whereas some have predicted an end to the era known as the Great Stagnation, I argue that Biden has stood by while inflation has done its damage to the engines that drive American growth.

As inflation climbs, real earnings for American workers plummet. According to the Bureau of Labor Statistics, from July 2021 to July 2022, real hourly earnings have decreased by 3.5 percent. Nowhere are these costs more felt than among low-income Americans who already face tight budget constraints. Inflation really does eat away at workers’ paychecks.