President Biden has a method to his madness
(or so he fantasizes) which is his economic
philosophy: Spending has no negative conse-
quences; rather, it has only positive ones!
He believes that the federal government can
spend and borrow limitlessly, and tax more as
well, with no economic risk whatsoever.
Free-market economists laughed at this notion,
as they know, and many of us know, that history
is loaded with nations that attempted to spend,
borrow, and tax their way to prosperity, only
to compound whatever economic difficulties they
may have had at the outset. The list is long:
The ancient Roman Empire, Germany between
the World Wars, Postwar Britain, Argentina,
Bolivia, Mexico, Greece, Zimbabwe, and Venezuela.
Left-wing governments in some of these countries
made lame excuses as to why their plans didn't work.
President Obama's administration here in the U.S.,
gave as an explanation why Obama's big-ticket
$800 billion stimulus plan didn't yield anywhere
near the promised 4% annual growth in its billing;
they claimed that they hadn't spent enough!
Economic ignorance or chutzpah?
In 2021 the then-new Biden Administration concocted
a budget with FOUR TIMES (emphasis mine) the spending
of the Obama team. Even President Trump, a Republican,
made the mistake of enacting a Covid-relief spending
rampage. Biden persuaded Congress to put $4 trillion
into social-welfare programs, corporate-welfare grants,
(can't leave anyone behind, the Biden team figured)
college and healthcare subsidies, and other goodies for
still other individuals and groups. Despite the fact that
the economy was already making a comeback as businesses
reopened. The Biden bunch congratulated themselves for
having invented a mechanism that would make the economy
run more efficiently by helping the country to "build back
better", to quote a Biden slogan. Instead, we got the worst
inflation in 40 years. They even tried to con the American
people into believing that the economy is doing marvelously,
and that the inflation will soon subside! These people are,
among other things, two-bit charlatans!
Although Biden and company tried to take credit for a rise
in the average weekly earnings employees of 15% between
January 2021 and May 2024, prices for goods and services
shot up 19%, so the weekly earnings of employees suffered
a loss in real terms. Despite the trillions in handouts, working
Americans' average real income declined by more than $2,300
in today's dollars. To date, not a single economist in the U.S.
(or anywhere else) has backtracked on their glowing claims
about and praises for significant spending programs and backing
them with borrowing and taxing the likes never before seen
anywhere in the world. Perhaps they're in hiding.
MEM
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