If you are having difficulties making it from paycheck to paycheck, you are not nearly as unique as you might think.
The majority of people in the United States believe that the current state of the economy is not good and that it will continue to grow worse.
Since President Joe Biden took office, there has been a clear decline in people’s standard of living. Wages may have increased, but prices have increased much more quickly.
Even worse, these wounds were inflicted on themselves. You need to look no further than the man who is driving the ship to locate their origins; his name is Biden.
On the very first day that Biden was vice president, he grabbed the wheel and made a hard turn to port, which is a left-hand turn. He did this, and as a result, he blew the economy to pieces.
Biden has appeased his fans on the far left by cancelling pipelines, threatening the existence of American energy businesses with extinction, forestalling drilling leases, and creating a hostile climate for producers; but, he has left the rest of the country holding the bag.
Biden has put up a ferocious fight against the development of pipelines, which has halted the replacement of ageing infrastructure and rendered prospective wells largely ineffective.
If the driller is unable to construct a pipeline to convey the product, then it is pointless for them to drill an oil or gas well.
In a similar vein, Biden’s persistent threats to eradicate fossil fuels using suffocating taxes and regulation have discouraged investment.
No one wants to invest in the construction of a refinery that will take several years to recoup its original expenditures when there is a good chance that the government would shortly order the closure of that facility.
Additionally, Biden has been responsible for the cancellation of drilling leases as well as the missing deadlines for the announcement of plans for new leases.
This unpredictability makes it practically difficult to invest and boost output in an industry where the amount of capital required to do so is frequently measured in the tens of billions of dollars.
The economy has completed a complete about-face, and as a result, the strong tailwind of American energy independence has become an equally strong headwind in the form of increasing energy prices.
Domestic energy that is both affordable and reliable has been a boon to the American economy, but it is increasingly being passed over in favour of options that are both more expensive and less reliable.
This shift to the left by the Biden administration is driving up prices for consumers in the United States since energy prices affect the prices of everything else we buy.
Politicians grossly misunderstand the extent to which the cost of energy has an impact on both prices and economic activity.
The administration of Joe Biden has brought the country to a standstill economically and put it in reverse by directing the ship of state squarely into the direction of the wind.
The results of the administration’s strategy toward energy are diametrically opposed to those that would be produced by the free market, which has repeatedly shown that it is capable of turning headwinds into tailwinds.
Take gasoline. Its primary components were originally byproducts left over from the process of refining kerosene.
Their disposal was both hazardous to people and harmful to the environment. The free market, on the other hand, came up with a purpose for these petroleum distillates all on its own, transforming a potentially dangerous waste product into one of the most commonly traded commodities in the entire globe.
This resulted in a significant decrease in the cost of transportation and made it possible for billions of people all over the world to afford it.
But miracles like this one are significantly less likely to occur when bureaucrats take possession of the situation and ideologically guide the ship in the direction they want it to go, as opposed to the direction that millions of other people would like it to go.
The tailwinds of abundant American energy are becoming the headwinds of “green” energy boondoggles, which are dragging the United States of America farther into a recession.
This is because the Biden administration is continuing to move the nation off of stable, domestic energy supplies.
Nevertheless, the press secretary for the White House maintains that “we are not in a recession right now,” despite the many signs that suggest the opposite.
The Federal Reserve Bank of Atlanta, which keeps a model that forecasts economic growth, is expecting that the economy shrank for a second consecutive quarter during the second quarter of 2022, which spans the three months from April through June.
This follows a decrease of 1.6 per cent in the first quarter, which encompassed the months of January through March.
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Simply put, a recession is when there is a decrease in the number of goods and services that are produced over two consecutive quarters. This happens when the economy decreases.
Because of artificially inflated energy prices, the cost of producing and consuming identical goods and services has increased, leading to a decrease in both production and consumption.
This results in a decrease in the quality and standard of living, even though you may be working the same amount of hours as previously.
Or you might not have a job at all, as unemployment rates tend to rise during recessions because fewer people are needed to fill open positions in enterprises.
The initial official estimate of economic growth for the second quarter will be issued on July 28, and it is anticipated that this estimate will demonstrate that the country is already experiencing a recession.
However, the ship of state might quickly resume its journey by resuming its course with the wind in its favour.
For this to take place, the administration of Vice President Joe Biden needs to step down from its position of power and remove its boot from the necks of the United States’ most important energy producers.
