Trump unleashed a wave of protectionism unlike anything we have seen for decades. 

But President Biden under guise of "Build Back Better", is out-Trumping Trump on "America First".

The Inflation Reduction Act has nothing at all to do with reducing inflation. Rather it's a subsidy scheme illegal under WTO rules. 

On November 30, I commented The EU is Very Worried About Biden's Inflation Reduction Act (IRA)

The EU is moaning loudly, but nothing will change. Instead, the EU is highly likely to find its own way of making illegal subsidies.

Tariff and Sanction Madness

Biden did not get rid of Trump's costly tariffs. He kept all of them and added sanctions on Russia and more sanctions on China. 

Trump put sanctions on Russian energy company Gazprom. Biden and the EU cooperated to extend sanctions on nearly all Russian energy. 

The result is higher prices. 

Union Wages 

Trump went after blue collar workers. So has president Biden, pushing unions at every turn. Unions, especially in the public sector are highly inflationary. 

Collective bargaining for public unions is a big scam. Even FDR recognized that.

For discussion, please see Public Unions Have No Business Existing: Even FDR Admitted That

Military Spending

When it come to military spending, President Biden gave Republicans everything on their wish list without a fight in the last monstrous omnibus bill. 

A Budget Showdown Between Republicans and Democrats Looms, Who Will Prevail?

Yesterday, I asked A Budget Showdown Between Republicans and Democrats Looms, Who Will Prevail?

Question of the Day:
When does McCarthy buckle on the debt ceiling?

Sooner: Before May
Later: Up to 2 weeks before money runs out
Really Late: Some Emergency Agency Shutdowns
Not At All: Democrats Agree to Some Cuts

— Mike "Mish" Shedlock (@MishGEA) January 16, 2023

In order, my guesses are Really Late, Later, Sooner, and Not At All. 

The Wall Street Journal editorial board is already moaning, fearful that Republicans might actually make a compromise that will cut military spending. 

How Long Will High Inflation Persist? What Happened to the Great Moderation?

On January 11, I asked How Long Will High Inflation Persist? What Happened to the Great Moderation?

In the above post, I listed 10 reason for persistent inflation. Somehow, I failed to mention either unions or military spending. 

The Fed has its hands full.

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