ECB President Christine Lagarde Blames Less Focus On Job Retention During COVID For High U.S. Inflation

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European Central Bank President Christine Lagarde appeared for an interview on CBS’ Face The Nation(04/24/22) to discuss the current global inflation brought about by covid and the Russsia-Ukraine war. During her interview, President Lagarde made an interesting observation, telling host Margaret Brennan that inflation is higher in the U.S. because unlike Europe, the U.S. focused more on issuing covid stimulus/relief checks than on job retention. Europe’s primary focus during covid was on job retention. She said the resultant labor shortage in the U.S. is driving up wages, which are in turn, driving up costs. Hmm, interesting.

Host Margaret Brennan(video at 4:53):“In this country there’s a lot of debate around how much the government is to blame versus the central bankers for the inflation that we are experiencing. The U.S. spent $6 trillion on covid relief, $2 trillion of it on President Biden’s watch last Spring when the economy was already recovering. Do you think some of this spending in the U.S. exacerbated inflation, because Europe didn’t spend like this?”

President Lagarde:“We in Europe spent less in stimulus, and I think we spent differently. We spent pretty much half as much as what the U.S. government spent on stimulus, and heating up the economy. But we also spent differently because I think the focus was predominantly on keeping the jobs, not necessarily sending the checks, and as a result of that, people who managed to keep their jobs alive, while not necessarily going to work because covid stopped everybody from going to work at some point in time, they had their job. So when covid was over, they went back to their job. So, I think that the labor market that you have currently in the U.S., which is incredibly tense, where you have a lot of jobs that are not filled, where you have plenty of vacancies, we don’t have that in Europe at the moment, and the current situation you have on the labor market here in the U.S. is clearly contributing to possible strong inflation and second round effect, where prices go up, wages go up, short supply of labor, wages continue to go up, and that feeds back into prices. That’s one of the differences between our two economies.”

There’s no other way to interpret ECB President Lagarde’s remarks other than(I’ll be happy to stand corrected of course), the current strong inflation in the U.S. is largely driven by the fact that the government did not do enough to help people keep their jobs during covid. In other words, even though a lot of people could not physically go to work during covid, more should have been done to make sure their jobs would still be there for them after the pandemic–propping up their employers to keep them afloat. According to President Lagarde, this is precisely what Europe focused on–propping up the employers, and is the reason Europe is not seeing the high levels of inflation as the U.S.

For the record, this does not mean Europe did not hand out covid stimulus/relief checks to workers like the U.S. did. What President Lagarde is saying is that the primary focus in Europe was job retention. It’s also worth pointing out for the sake of fairness, that the entire U.S. covid response, and the resultant high inflation, cannot be pinned solely on the Biden administration. Reasonable people will agree that the Trump admin is equally to blame.

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Drain The Swamp?Yeah Right. How Lobbyists Are Helping Trump Roll Back Regulations

Bombshell NYT piece goes into details of how the Trump administration, with the help of lobbyists tied to the fossil fuel industry (oil and gas), is rolling back environmental regulations and in so doing, seriously jeopardizing the public’s health and safety. These environmental regulations affect everything– from the air we breathe, the water we drink, to the toxic(potentially carcinogenic) substances we may be exposed to as a result of petrochemical processes.

Trump who was elected President largely because of his signature promise to “drain the swamp”(end corruption) in Washington, has apparently created his own swamp of oil and gas lobbyists who are tearing down environmental regulations they deem a hindrance to maximizing profits.

Yeah, you read that right–oil and gas lobbyists are helping the Trump administration to tear down environmental regulations so that the companies they represent can maximize profits–public health and safety be damned. This is public corruption at its worst and as “swampy” as it gets.

According to the New York Times piece the Trump admin has to date rolled back 95 environmental regulations, 58 of them completely and 37 still in the roll back process.

16 environmental regulations related to air pollution and emissions have already been completely rolled back with 9 more still in the roll back process

10 regulations related to drilling and extractions have already been completely rolled back with 9 more still in the roll back process.

As for regulations related to infranstructure and planning, 11 regulations have already been completely rolled back with 1 more still in the roll back process.

7 regulations related to animals have already been completely rolled back with 3 more still in the roll back process. 5 regulations related to toxic substances have already been rolled back with 3 still in the roll back process.

4 regulations related to water pollution have already been completely rolled back with 6 more still in the roll back process. According to the NYT piece, there are 11 other environmental regulations the Trump administration has tinkered with, 5 of which have completely been rolled back and 6 still in the roll back process.

Bottom line folks, there are already very many reasons for America to adopt Rep Alexandria Ocasio-Cortez’s ( AOC) Green New Deal(GND). As gifted as Rep AOC is in promoting her GND, she rarely cites corruption in the oil and gas industry as one of the central reasons why the country should adopt her plan. Hopefully this bombshell NYT piece will make her highlight corruption in the oil and gas industry as one of the primary reasons why America needs the green new deal. Simply put, AOC’s GND will once and for all, drain the swamp that is the oil and gas lobby.

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