president biden signed the american rescue plan when the economy didn t need another boost. we know about the gas prices at record high diesel fuel is also at a record high and that pushes prices on goods, everything else on that board you are seeing in double digit inflation. baby food is up 10.8% including baby formula which has shortages because of the supply chain issues and recall. when we look at economic data internally, a lot of ex experience all economists look at the fact we ve created over 8 million jobs since the president took office. the unemployment rate dropped to 3.6%. gdp grew at 5.7% last year. so the white house focuses in different areas. when you start to talk about the economy, not inflation. bill: edward lawrence. big day tomorrow. see what we get. karl rove will join us at the bottom of the hour to talk about this and more coming up with karl. stand by for more on that. dana: a fortune activist
yes, gas prices 67%, housing costs 53%. that makes the case for you there, david. every government that has tried to spend their way out of inflation has run into the exact opposite problem. the extremes are places like venezuela, etc., are we heading towards 100%, 200% inflation? not probably in a year or so but we could be seeing double digit inflation in 2022. anybody that was alive in the late 70s remembers how disastrous. there was a phrase called stagflation. we create disincentives to work and to create new businesses, that means we have a stagflation economy. higher inflation, lower growth and that s where we re headed. bill: do you think the moderate dems will hold the line at 3.5 trillion? are we putting all of our money and cash on joe manchin s backbone? i don t know. i m not willing to put my retirement funds there. that s one of the things that
markets continue to go up in this environment. you guys know what the fastest growing part of the budget is? interest payments. this biden budget assumes that interests rates will remain at 2% for the next 10 years. with inflation creeping up the fed will have to at some point raise interests rates before the 10-year period is over. we are at risk of defaulting on the debt. it s never happened before in american history. god help us if that does happen. because all hell will break loose not only in the markets but you think inflation is bad now. wait until we have double digit inflation. that s what s coming. you mentioned this morning. all this happening we re seeing massive change. these policies are changing america. the questions yesterday from the press to the president about the ice cream cone, it is
let s discuss with max a. fellow at council on foreign releases and the author the road not taken. you wrote a great article in the washington post , titled reagan was the gipper trump is the grifter. you say the comparisons between the two presidents a perfectly plausible proposition if you know nothing about reagan or trump. talk to us about that. how are they different? well, where to start. the differences are so vast it s staggering me people try to compare them. some of the trump supporters have to the nerve to suggest he is doing more than egan which is ridiculous you have to for starters remember the situation in the united states when reagan took power in 1981. we had double digit inflation. double digit interest rates. our economy was going through a rough spell. we had been through the iranian hostage crisis. the entire malaise was in the air. the country was in a dark spot. he rebuilt the military, cut taxes at a time when the tax cut
washington post , titled reagan was the gipper trump is the grifter. you say the comparisons between the two presidents a perfectly plausible proposition if you know nothing about reagan or trump. talk to us about that. how are they different well, where to start. the differences are so vast it s staggering me people try to compare them. some of the trump supporters have to the nerve to suggest he is doing more than egan which is ridiculous you have to for starters remember the situation in the united states when reagan took power in 1981. we had double digit inflation. double digit interest rates. our economy was going through a rough spell. we had been through the iranian hostage crisis. the entire malaise was in the air. the country was in a dark spot. he rebuilt the military, cut taxes at a time when the tax cut made sense because the economy was going into recession. now, contrast that with donald trump who took over after this long period of growth brought