The Biden administration seems intent on locking the economy into a dismal cycle of spend-tax-inflate: “rinse-and-repeat.”
His reckless spending plan would saddle present and future generations with high debt, low productivity, weak labor-force participation and anemic growth.
Admittedly uncertain about the final cost of his plan to “rebuild America better,” Biden stubbornly insists “the government can cover the costs.” But who is the government? Is it the Washington elites who always manage to escape the nefarious consequences of their pet policies or is it the governed, who ultimately foot the bill?
A win for Biden will mean:
Higher taxes. Hollow promises to tax only the “rich” are dishonest and impractical. The “rich” in this context means people with high-wage income: doctors, lawyers, engineers and other professionals. U.S. Sen. Bill Cassidy and his colleagues would be wise to follow Coach O’s advice, “Don’t take the cheese.”
More national debt. Biden’s own budget officials earlier this year estimated that his agenda would increase the national debt by nearly $1.4 trillion over the next decade.
More inflation. Deficits “stimulate” the economy mainly by increasing inflation, which is an “equal-opportunity thief”; it steals purchasing power from wealthy and poor alike.
Higher interest rates. Despite the Federal Reserve, nominal interest rates rise when inflation alters lender/borrower expectations. Higher interest rates on larger national debt divert an ever-larger slice of the bloated federal budget to bondholders, and crowd out private investment in productive capacity.
No amount of sanctimonious “spin” by the president can dispel the hard facts on the ground. His public relations campaign relies on economic myths long discredited by economists, yet he uncorks lies left and right in a desperate attempt to shore up his failing presidency. “Mr. Malarky” cannot be trusted to restore fiscal sanity.