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All About Bidenomics (Vol. 112)

Does this President really understand what makes economic progress?


The short answer is NO. You can put lipstick on a pig, but it is still a pig. He must believe that if he tells us black is white, we will believe him. No, it doesn’t work that way, just maybe we are smarter than he gives us credit for. Over 70% of the public thinks we are on the wrong track and Bidenomics is just more PBS (political bull s–t). It isn’t helping us; it is destroying us.


What is Bidenomics that they are so proud of? His plan – Bidenomics – is rooted in the idea that the best way to grow the economy is ‘from the middle out and the bottom up’. Does anyone know what that means? I don’t.


He ridicules ‘trickle down’ economics. My best guess is that he is talking about supply side economics as practiced under President Reagan. Cut spending, taxes and regulations and let businesses grow. To learn more about that, see Facts, No Spin #90 on Supply Side Economics. Sorry to tell you, Mr. President, it worked. What you are doing is economically incomprehensible and isn't working, no matter how many times you tell us how great it is. The massive spending and deficits have wrought inflation in spades. Real incomes have declined and we all feel the pain. And now we have to wring out inflation you brought by crunching the economy while the deficits continue to soar. That means rising interest rates on everything. And he claims success.


The basics will be familiar to anyone who has watched a Biden speech or read economic policy coverage for the last few years: Biden touted a playbook that consists of subsidies and spending, rules and regulations, unions and jobs. This was not an announcement of new policies or new ideas so much as a summary, and a name, for what he's already done. $20,000,000,000,000 (that’s 20 Trillion) of additional debt over the next decade for a total of over $50 Trillion of interest-bearing debt in 10 years. OMG! And he claims success.


He claims success for cutting the Covid bloated deficit by $1.7 Trillion dollars. Even the Washington Post gave him bottomless Pinocchio’s for that baloney.


Those with long experience in the semiconductor industry have criticized Biden's plans. Last year, Morris Chang, founder of the Taiwan Semiconductor Manufacturing Company (TSMC), which is currently in the midst of building a chip plant in Arizona, warned that America's efforts to subsidize domestic production would be an "expensive exercise in futility". Corporate welfare isn’t helping us citizens, just your crony’s.

He claims success for growing manufacturing investment. Not so fast, Mr. President when you look at real investment.




He also ran through what amounts to the greatest hits, or misses, of his administration's economic agenda: "promoting competition" (presumably by waging a series of losing antitrust battles), pushing green energy (via poorly targeted subsidies and curtailing energy production that make energy more expensive), promoting unions and union jobs (which will raise barriers to entry, lower productivity, and increase costs in ways that lead to higher inflation). Bidenomics turns out to mean pursuing the unsound policies he's already pursued, and putting his name on them. That is lipstick on a pig.


And they love regulations. This administration is by far the most regulatory one in recent history. They even redefined what a significant regulation is - it used to be one that impacted the economy by $100 million dollars, now it is $200 million to hide the horrendous regulatory state he is building. What do extraordinary regulations do for us? - cost us money and slow economic growth. And he claims success.


Yes, employment has grown and the unemployment rate is low. That comes from a rebound from a COVID closed economy and an overheated economy which resulted from the excessive spending and deficits. We are all paying the price for that now.


BOTTOM LINE


Somewhere along the way, President Biden missed the important message from President Clinton, ‘The era of big government is over.’


Cutting taxes, spending and regulation in a more limited government is the formula for economic growth. The economic pie is not fixed, it will grow with the right policies. The lessons of the last 200 years tell us all we need to know. With innovation and entrepreneurship comes better jobs, more wealth and better material conditions for everyone, not just for those who innovate.


Bidenomics is exactly the wrong formula for that. We get and reject Bidonomics, how about trying something that actually works.


LEARN ECONOMICS. THEN, VOTE SMART.




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