The Joe Biden Economic Proposals

The Joe Biden economic proposals most strongly resemble:

A. A teenager with a new credit card

B. A drunken sailor

C. Someone implementing the Cloward-Piven strategy

D. Someone with no knowledge of economics creating the policy

E. All of the above

Take your pick.

Yesterday Breitbart posted an article that included a statement by Biden administration’s White House Council of Economic Advisers Heather Boushey.

The article reports:

On Friday’s “PBS NewsHour,” incoming member of the Biden administration’s White House Council of Economic Advisers Heather Boushey stated that deficit spending can cover Biden’s coronavirus relief package, so how to pay for Biden’s economic agenda is “not tonight’s problem, but it’s certainly something that we’re going to be talking about in the weeks and months to come.” And there are many different options.

Host Judy Woodruff asked, “And, finally, in a nutshell, what is it going to take in the way of higher taxes, higher revenues, in order to pay for some of these things that you’ve been describing? What income level is going to be hit and what kind of tax?”

Boushey responded, “Well, that is certainly a very important question. So, for right now, we can afford to spend this package through deficit financing. But you’re right. Moving forward, we’re going to have to think about the fiscal situation. During the campaign, the president-elect outlined a whole series of tax increases focused primarily on those at the very top.

I would like to remind everyone that the luxury tax put on by the first Bush administration was only supposed to impact those at the very top. Because of the extra burden it put on those at the very top, those people employed in the industries supplying goods to those at the very top were laid off and the layoffs echoed throughout all levels. For whatever reason, it is always the middle class that shoulders the burden of any tax hike. Hold on to your wallet.

One final thought (from goodreads.com):

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years. These nations have progressed through this sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to selfishness; From selfishness to apathy; From apathy to dependence; From dependence back into bondage.”
Alexander Fraser Tytler

Alexander Fraser Tytler lived from October 15, 1747 to January 5, 1813. His observations were well ahead of their time.

The Cost Of The Biden Economic Policies

Issues & Insights posted an article today detailing some of the impact of Joe Biden’s economic proposals should he become President.

Some of the highlights of the article:

A recent study by a group of highly regarded economists at the Hoover Institution, including two former members of the Council of Economic Advisers, found that the full panoply of Biden’s policy proposals — Medicare for All, big tax hikes on the wealthy and the working poor, the massively expensive Green New Deal, and thousands of impending regulations — would have devastating consequences for the U.S. economy.

…According to the nonpartisan Committee for a Responsible Federal Budget, Biden’s projected tax increases total $4.3 trillion over the next decade, and that’s a conservative estimate. Trump, meanwhile, would cut taxes by about $1.7 trillion. The quick math: That’s a $6 trillion difference.

“We estimate that the full Biden agenda will reduce long-run real GDP per capita by more than 8% as a result of reducing full-time equivalent employment (FTEs) per person by 3%, the capital stock per person by 15% and total factor productivity by 2%,” the Hoover Institution study said.

Based on current growth estimates by the nonpartisan Congressional Budget Office, “this suggests there will be 4.9 million fewer employed individuals, $2.6 trillion less GDP, and $1.5 trillion less consumption in that year alone. Median household income in 2030 would be $6,500 less.”

…Right now the minimum is $7.25 an hour. By more than doubling it, some 2 million jobs would be lost, EPI estimates. Many of those losing out will be low-skilled workers with little education, including many Hispanics and African-Americans.

Hardest hit of all, however, will be struggling female workers.

“Not only are 59% of minimum-wage jobs held by women and slated to be affected by these wage increases, this means that 1.2 million jobs held by women will be lost by 2027 due to this policy, accounting for 61% of total losses,” the report said.

Just as bad, as noted above, the minimum wage hike will hit struggling small businesses, the nation’s main employers.

“Increasing labor costs through a federal $15 minimum wage would only bring businesses — and the people they employ — closer to the point of no return,” EPI managing director Michael Saltsman said in an interview with the Washington Free Beacon.

The article also notes:

Finally, there’s the proposed 2% wealth tax on the truly rich, an idea proposed by Massachusetts socialist Sen. Elizabeth Warren and part of the Biden campaign’s tax conversation. It would tax the wealth, not the income, of those who have $50 million or more in household wealth at 2%. For those over $1 billion, it goes up to 6%.

If this makes you all warm and fuzzy, as it does the increasingly far-left Democrats, you might want to rethink that. A recent study by the Center for Freedom & Prosperity, a respected free-market think tank, estimated the following results of such envy taxes:

    • “Long-run GDP decline of roughly 2.7% (relative to a steady state with no wealth tax) due to a decline in the capital stock of roughly 3.7%;
    • “An immediate loss in hours worked of 1.1%, equating to approximately 1.8 million jobs, and a long-run loss in hours worked of 1.5%;
    • “Initial decline in average annual household real wage income of about $2,500;
    • “Explosive welfare state growth as transfers relative to GDP (excluding SS) increase by 70.1%;
    • “Per-household wealth held by the top 0.25% falls by $3.7 million, and from lower-middle to upper-middle households, declines in lifetime wealth range from $440 to $49,660.”

That’s not sweet revenge on the rich – it’s foolish, self-defeating envy, the engine that keeps socialism running.

A vote for Joe Biden is a vote for the end of the Middle Class–a major feature of socialistic societies. The recent history of Venezuela is a powerful example of how a country can go from a wealthy, successful country to a place where people are eating their pets in a very short time.