“America First”, Biden and Trump Both Guilty of Sponsoring Inflation

St. Louis Federal Reserve found that government spending has little to no impact on inflation. In fact, a 10% increase in government spending may lead to a 0.08% decline in inflation. Forbes Aug 25, 2022

Inflation is made by Government and no one else. Of course no Government likes to accept
responsibilities. . . responsibility for its own defects, so Governments of course blame greedy business men,
grasping trade unionists, and spend-thrift consumers. No doubt business men are greedy; no doubt trade
unionists are grasping; and everyone knows that housewives are spendthrifts; but neither the greedy business
men nor the grasping trade unionists nor the spendthrift housewives produce inflation. From The Collected Works of Milton Friedman

Government deficits can and sometimes do contribute to inflation. However, the relation
between deficits and inflation is far looser than is widely believed. Moreover, the major harm
that deficits do is to foster irresponsible government spending.

First, surpluses or deficits
can be a result of inflation and deflation as well as a possible cause. That is the main reason
inflation after World War I coincided with a budget surplus and deflation in 1932 and 1933
coincided with budget deficits. Second, deficits have a direct effect on inflation when they are
financed by creating money (as they were in the two world wars). But, wartime periods aside,
many other factors typically affect the rate of monetary growth, so that there is only the loosest
relation in practice between monetary growth and deficits.
Deficits are bad primarily because they foster excessive government spending—the chief culprit,
in my opinion, in producing both inflation and slow economic growth. If spending is financed by
creating money to meet deficits, the link between spending and inflation is direct. If spending is
financed by borrowing or taxes, the link is indirect but nonetheless real. Both borrowing and
taxes crowd out private spending, absorbing resources that might otherwise be used for private
consumption or productive capital investment. One effect is upward pressure on interest rates,
and hence, given the Federal Reserve’s unfortunate propensity to operate through interest rates,
higher monetary growth. In addition, by reducing private incentives to work, save and engage in
productive ventures and by crowding out private investment, high government spending inhibits
economic growth so that any given rate of monetary growth produces a higher rate of inflation. “Deficits and Inflation”
by Milton Friedman

The empirical findings presented in this paper
indicate that, given unchanged monetary conditions, fiscal policy and domestic demand
may be inversely related. There appears to be evidence for complete crowding out of fiscal
expenditure, even in situations where interest rates do not rise. The crowding out
transmission mechanism does not operate via interest rates, but the quantity of purchasing
power claimed by the government… Put simply, the government is draining money from the private sector and uses it to plug
the holes in banks’ balance sheets. Ceteris paribus this will reduce economic growth. The unintended consequences of the debt: Will
increased government expenditure hurt the
economy? Richard A. Werner