As always this is subject to revision, constructive criticism is welcome.
Inflation is the increase in prices over time, and fall of purchasing value of money. At it's simplest, it occurs when demand for goods is greater than supply, or when more money is available to buy them. The inflation we've seen since the pandemic was due to pent up demand, people returning to work and/or making better wages; and most important, the $trillions pumped into our economy by the Trump and Biden administrations and congresses, and $10 trillion in "magic money" created by the Federal Reserve Bank; all to offset the impact of the pandemic.
The resulting inflation was inevitable. In response to the price inflation, the Fed has raised the interest rate charged between banks.
In addition they took measures to reduce the money supply.
Because of the Fed's actions, we've seen nothing like the disastrous inflation of the 1970s and 1980s. That was due to spending on the Vietnam War, the OPEC embargo, Nixon's price controls, and his removal of the dollar from the gold standard.
The total federal debt is the accumulated debt over decades from government spending, all budgeted and approved by congresses, signed by presidents. It's important to remember that presidents can propose budgets, but congress writes and passes the necessary legislation. The only balanced budget I'm aware of was under Bill Clinton, with Republican controlled House and Senate, written by Republicans. It was disastrous.
It's not fair to allocate debt by president, because the first year is under the previous administration's budget; as with Clinton, Obama and now Biden, Republicans controlled at least one half of congress. Obama inherited a Republican caused economic collapse, and GW's tax cuts. Biden inherited the results of the pandemic, the botched response, and Trump's (Ryan/Koch) tax cuts.
Deficits occur when government spending exceeds revenue in any fiscal year.
The Clinton administration and congress created "surpluses", part of the intention was to pay back some of the $3 trillion in excess social security receipts over payments that congresses of both parties spent. GW and his congress gave it to the very wealthy in their tax cuts, spent more on his wars in the Middle East.
Remember, the accumulated debt was and is the result of congressional legislation. Lower tax revenues increase the debt. Reagan and his congress gave the very wealthy tax cuts, created huge deficits, then raised taxes on all of us, including taxing social security benefits.
To be continued.
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