Newt Gingrich Commentary: Bold Big Government Socialism vs. Timid Big Government Socialism

President Joe Biden and Personal Aide Stephen Goepfert walk through the Colonnade, Friday, August 6, 2021, on the way to the Oval Office of the White House. (Official White House Photo by Adam Schultz)

The power struggle we are watching in the Democratic Party over President Joe Biden’s spending (and taxing) bill is not between moderates and Big Government Socialists. It’s between timid Big Government Socialists and bolder ones.

There are no moderates left in the Democratic Party. In August, every single Democrat in the House and Senate voted to move forward with Sen. Bernie Sanders’ $3.5 trillion spending bill – which is really $5.5 trillion when scored honestly. And every one of them voted for the $3 trillion tax increase to help pay for it – every one of them.

After trillions of dollars in supposed emergency spending over the last two years, the current argument is not over whether we will spend $3.5 trillion or spend nothing. The fight is between $3.5 trillion and $1.2 trillion. The final bill, which could get the so-called moderates’ votes, will likely be $2 trillion.

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Commentary: Making Sense of the Post-Pandemic Economy

Guy on phone with stocks on computer screen

Are you having a hard time understanding why the housing market is heating up, and why the cost of essentials such as milk, eggs, and gas is climbing? Are you in the market for a used car? Then you know how expensive those are right now. And why can’t businesses find employees, yet millions remain unemployed? Economists agree the recovery isn’t like anything we’ve seen before. That’s because we’ve never had a situation before where the heavy hand of government shut down private enterprises on a nationwide scale. The market distortions are enormous. As states reopen, there is a herky-jerky feel to the economy that has many people unsettled.

Former Federal Reserve vice chairman Alan Blinder wrote in the Wall Street Journal recently, “the recovery is not linear. Rather, it is proceeding in fits and starts. Sales of physical goods, for example, dipped only briefly when Covid hit, recovered quickly, and are now well above their pre-pandemic levels. In stark contrast, businesses that deliver personal services, such as restaurants and hotels, suffered a devastating depression and are still below their pre-pandemic levels.”

By far the most uneven outcome so far since the economy crashed in spring 2000, besides the 7.6 million fewer jobs compared to pre-pandemic levels, has been inflation, which is up 5 percent the past 12 months.

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