Jeff Bezos has been supportive of Joe Biden, but even his support only goes so far. That was evident with the recent verbal back-and-forth between the Biden administration and the Bezos administration. Commentators have begun to call the financial empire of Jeff Bezos an administration because the annual revenue for Amazon exceeds the GDP of most European countries.
The Biden administration wants to raise taxes on corporations. But then argued that raising taxes would lower inflation. Let’s see if we have this right: raising the costs of producing goods is supposed to lower the cost of goods. That doesn’t make sense, and it was left to the new press secretary to try to explain this obvious contradiction. One commentator said she sounded like a “high-school student who hasn’t done the reading and gets called on to expound on Chapter 32 in Moby Dick.”
Jeff Bezos argued that the current inflation would be even higher if Congress passed the Biden administration’s latest proposal. To be fair, we would probably be dealing with inflation no matter who was the president due to the pandemic, lockdowns, and previous spending. But once Joe Biden took office and had a Congress controlled by Democrats, the spending increased. Just a few examples include the $1.9 trillion passed in March for pandemic relief, $1.2 trillion infrastructure bill signed in November, and then this March another $1.5 trillion omnibus bill.
That’s lots of money thrown at a limited supply of goods because of supply chain problems. Too much money with too few goods is the classic definition of inflation. That’s why I’m glad that Jeff Bezos challenged some of the statements by Joe Biden.