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Douglas V. Gibbs ——Bio and Archives--December 26, 2025
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The damage done by the Biden administration to the economy was caused by pumping fiat money into the system and creating an environment where the cost of doing business and the government’s interference with the ability to increase supply reached prohibitive levels. The massive flow of dollars into the economy is an old Keynesian tactic called “priming the pump.”
The theory is that putting more money into the system so that consumers may use it to buy things encourages economic activity. Except, it actually achieves the opposite. Inserting fiat money into the system increases inflation, and as prices rise, consumerism drops. Basic economics revolves around the concept of supply and demand, and the cost of doing business. Increased supply reduces prices, and a reduction of the cost of doing business reduces prices. Government’s role when it comes to improving the economy is simple:Get out of the way. Reduce regulatory restrictions, reduce fees, reduce taxes on business, and remove as many other obstacles as possible........