The Biden administration appears to intend to lock the economy into a dismal cycle of tax spending-inflation: “rinse-and-repeat”.
His irresponsible spending plan would impose high debt, low productivity, low labor market participation and sluggish growth on present and future generations.
While uncertain of the ultimate cost of his plan to “better rebuild America”, Biden stubbornly insists that “the government can cover the costs.” But who is the government? Is it Washington’s elites who always manage to escape the harmful consequences of their fetish politics or is it the governed who ultimately foot the bill?
A victory for Biden will mean:
Higher taxes. Hollow promises to tax only the “rich” are dishonest and impractical. “Rich” in this context refers to people with high incomes: doctors, lawyers, engineers and other professionals. US Senator Bill Cassidy and his colleagues would do well to take Coach O’s advice: “Don’t take the cheese. “
No more national debt. Biden’s own budget officials earlier this year estimated his program would increase the national debt by nearly $ 1.4 trillion over the next decade.
No more inflation. Deficits “stimulate” the economy mainly by increasing inflation, which is an “equal opportunity thief”; it steals the purchasing power of rich and poor alike.
Higher interest rates. Despite the Federal Reserve, nominal interest rates rise when inflation changes lender / borrower expectations. Higher interest rates on larger national debt divert a growing share of the inflated federal budget to bondholders and crowd out private investment in productive capacity.
No amount of moralizing “spinning” on the part of the President can dispel the hard facts on the ground. His public relations campaign draws on economic myths long discredited by economists, but he exposes lies to the left and right in a desperate attempt to consolidate his failing presidency. “Mister. Malarky” cannot be trusted to restore financial health.