I woke up this morning and realized it was 1977. Or 1978. Anyway, it was the ”Carter Era” ll over again. For those of you thast are either too young yto remember, or weren’t born yet, what you are beginning to see in America’s economy is exactly what we sat during the presidency of Jimmy Carter. I voted for this guy. Why? He came across really smart. He graduated from the U/S/ Naval Academy with a degree in Nuclear Enfineering. After his time in the military, he ran a peanut farm in Georgia, which for me meant he had some business experience, as a small business owner. How could we go wrong?
I purchased my first home in California in the dying days of the Carter Administration. The reason I bought a house? Wow, I can’t even recall right now other than many of my colleagues at the time were buying homes – at the top of the market. Instead of buying these, at the time, clapboard, quickly constructed, “California “ styled homes which were very expensive ($80K+) and again, poorly comstructed. To give an example, there was one of these being built on my street. One late afternoon, my doorbell rang and a guy there introdiced himself as my neighbor, several doors down, the owner of the new home. He asked to borrow my phone to call his realtor. The problem? When his family entered the home and turned on a living room light from the wall, another light in another room came on. Yes, this was throughput his home. Quickly built, not regulated by the city or county because they were getting theirs, right?
What we are witnessing right now in America is what we all, me included, saw in the opening months of the Carter administration, Few, if any, believed that our economy would crater to the extent it did. Oh, my story about my house? I paid a 13.5% interest rate – with perfect credit. It was not unusual to pay up to 20% for a home loan during that period. We’re only 9 months into the Biden asministration. What will we look like in another 9 months. We can read history.
President Biden claims all this spending he’s in favor of, won’t cost the average American a dime. Yet, im the preceding months, inflation has increased to over 5% which has added, to the average American, $175 per month in added expenses. This is found in the cost of groceries and gasoline, to name just two categories. This is essentially, a tax on every American, working,/middle class, yes, even wealthy. Who does this $2100/year tax hurt the most? But, everything Americans spend money on, has increased, in some cases, double digits. These are building materials, landscaping, etc. That $175 per month will soon be $250 or more. So, even if you received a decent raise this year, you need to subtract the “Biden Tax” on that new income. Guess what? You’re in the hole. If you’re smart, you’ve stopped digging (going into debt) and will wait out the midterm elections which, hopefully will change the Congress. Of course, unless we, voters, get rid of establishment Republicans, nothing will happen during the 2 years until the presidential election. Recall: Republicans held both houses after Trump was elected. One bill. One. Useless republicans.
If anyone you’ve seen on television or heard on the radio has told you that things will become markedly better if both houses of Congress were in control of republicans, be wary. All I’ll say here is remember 2010 and the ”Tea Party”? Where are those republicans now? Oh yeah, they’re now part of the same establishment that they railed against a decade ago.