Federal Reserve Chair Jerome Powell is warning that the fight to control inflation may trigger a recession, but Grover Norquist, the president of Americans for Tax Reform told Newsmax on Thursday that the U.S. is "technically" already there.
"The administration likes to gaslight the American people and say that we're not," Norquist said on Newsmax's "Wake Up America." "Well, it had two straight quarters of negative growth, meaning the economy is contracting, getting worse. The projections for this next quarter are not good. It's close to zero.
"Maybe negative may be positive, but it's close to zero. It ought to be doing much better than it is."
Inflation remains at about 8.5%, compared to being at 1.4% when President Joe Biden came into office, but he raised the money supply by 40% when the economy was already growing at about 4%, said Norquist.
"What did one expect to happen?" said Norquist. "Of course, inflation happened."
And while Biden may have become the "face of inflation," all House and Senate Democrats voted in his "massive spending bills that gave us inflation," said Norquist.
"People are poorer today because the Democrats inflated the currency," he added. "They've seen the value of their life's savings decline. They've seen the value of their paychecks decline, and Biden's up there talking about raising the cost of energy for Americans because of his climate agenda. He wants more damage to Americans in terms of the higher cost of living."
The Democrats' strategy of printing too much money to help the economy isn't working, and Republicans are wise to point that out, said Norquist.
"More than 70% of Americans say that inflation is badly damaging them," said Norquist. "We know that the average wage increase over the last years is 5.5%, but that's less than the devaluation of the dollar."
Meanwhile, slowing the economy to deal with inflation like the Fed is attempting, will bring a recession, just like the same moves did when Jimmy Carter was president, said Norquist.
"We had a severe recession, but [Ronald] Reagan cut taxes and deregulated so in January of 1983 we saw an explosion of economic growth and seven years of strong growth," said Norquist. "There's nothing that Biden or the Democrat Congress are doing to give you growth to come back from the collapsing economy."
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