Finance / Government Watch / Politics

Biden-omics – Seven Deadly Sins

bidenBiden-omics is coming – massive debt, unchecked spending, higher inflation, taxes, interest, unemployment, and hype.  Those seven blips are in formation on most economists’ radar.  They result from historical ignorance, socialist instincts, recklessness, and disrespect for private businesses and citizens.  The seven blips – in order:

First, massive debt — There can be no argument.  We are in a debt dive, record-breaking national debt, record publicly held, and federal outlays now far beyond tax revenues.  The Congressional Budget Office (CBO) reported on April 30 that “mandatory spending” hit $4.6 trillion annually.  CBO confirms the dive:  Outlays (spending) totaled $5.8 trillion, revenue projected $3.5 trillion, carry-forward deficit $2.3 trillion, and debt held by the public $22.5 trillion.  So, with a huge deficit overhang, taxes cover just 65 percent of what Congress is spending.  Do you see the problem?

Like an airframe in a steep dive, reality comes up fast, or else your nose does – with all the associated pain.  We should hope on the nose coming up, but there is no sign – no cost-cutting, debt reduction, painful austerity, trust in the private sector.  Instead, we have debt indifference and runaway spending.   See https://www.cbo.gov/topics/budget.

Second, unchecked spending – How much excess federal spending do we have?  Stunning already, stunning proposed.  Beyond $4.9 trillion in “regular” spending (non-COVID) and $6 trillion in previously unappropriated or emergency supplemental (COVID) spending last year, Biden added $1.9 trillion in 2021 for COVID, despite economists arguing more debt will slow the economy.  Already, “regular” spending (mostly “entitlements”) nearly doubled from 2008 to 2021, just over $2.5 to nearly $5 trillion. See https://www.thebalance.com/current-u-s-federal-government-spending-3305763.

Now, we hear Biden’s White House and Democrats calling for “trillions more” in federal spending – so-called “infrastructure” ($2.3 trillion, defined as anything), “American family” programs ($1.2 trillion, more anything), and “immigration” (quarter of trillion, money for those inside the US illegally), foreign aid (for those sending illegal aliens north), and one-party electoral monopolization (complete with DC statehood).  How much debt is contemplated?  The zeros would make a new paragraph.  Even the New York Times puts new spending at $6 trillion – over where we are!  See, e.g., https://www.nytimes.com/2021/04/28/us/politics/biden-spending-plans.html; https://finance.yahoo.com/news/1-key-u-senate-democrat-142826733.html; https://www.cbsnews.com/news/biden-american-families-plan-900-billion-cost/; https://www.washingtontimes.com/news/2020/sep/21/inside-the-beltway-the-biden-plan-20-million-illeg/; https://www.reuters.com/article/us-usa-election-biden-idUSKCN2AT3T4.

In short, Biden thinks US taxpayers – and struggling small businesses – should bankroll a huge increase in federal spending on things most Americans neither need nor want, at a time when revenues fell 35 percent shy of covering last year’s spending. Make sense?  Hardly.

Third, higher inflation – This is where predicting is easy.  With mass debt, spending, and indifference, the dollar’s value falls.  More paper money chases less wealth, as new spending means more debt and taxes, sucked from the productive private sector into the non-productive public.

Prices will rise sharply – at home and for foreign inputs as the dollar falls. Just check gas prices, as Biden spends more and pinches energy. Or check Jimmy Carter’s track record – when inflation ran away.  Even liberal economists cannot duck it – inflation is about to roar. See, e.g., http://theeconomiccollapseblog.com/get-ready-for-the-most-painful-inflation-since-the-jimmy-carter-years-of-the-1970s/;  https://www.msn.com/en-us/money/news/gas-prices-top-243-in-pa-to-hit-highest-point-in-two-years-how-much-higher-will-they-go/ar-BB1gu5rC?ocid=uxbndlbing; https://www.bloomberg.com/opinion/articles/2021-03-29/faster-inflation-is-coming-how-bad-will-it-be.

Lest you think this an exaggeration, the federal government “produces” nothing, while a dollar left in the private sector has an estimated 16-fold “multiplier effect” – one producer passing to the next, 16 times.  Who will inflation affect?  You and me. Average Americans, small businesses, older Americans on fixed pensions, younger on fixed wages, those paying loans with variable interest rates – are all in trouble.

Fourth, higher taxes – Biden and Democrats have set the spike. To “pay for” new spending, they push higher taxes on “the rich” – conveniently pushing class warfare, forgetting that in America, merit is what makes people rich, and anyone can become rich with hard work, ingenuity, luck, and lower taxes.  No, they aim to “punish” – so watch out, they are coming for small business, which could mean your job. See https://taxfoundation.org/joe-biden-tax-plan-2020/.

Fifth, higher interest – Of course, another easy prediction is how the Federal Reserve reacts to inflation.  They raise interest rates to “slow” the “overheating.” Higher rates reduce borrowing, hurt debt holders, increase payments on the national debt, and slow the real economy – the inflation aside. See, e.g.,  https://www.forbes.com/sites/steveforbes/2021/01/21/warning-higher-interest-rates-are-coming/.

Sixth, higher unemployment.  Unfortunately, when taxes and interest rates go up, when the cost of borrowing, inflation worry, federal debt, spending, and overall uncertainty rises, consumer spending, business investment, and employment fall. That means – as it did under Carter – higher unemployment.

Seventh, hype.  Now we come to the irony.  President Biden is either oblivious or buys into socialist centralization, mass spending, inflation, unemployment, and the debt dive. Biden avoids discussing these problems, framing debt as an investment (despite the net drain on the private sector), pretends taxing the rich is good (only if you ignore upward mobility), and spins bad as good.

Last week, Biden blamed bad employment numbers on Trump, then pushed them as good news since they justify more unemployment benefits and federal spending.  Bizarre, but what else can you do if you are driving the economy into a ditch – or are asleep at the wheel?  See, e.g., https://townhall.com/tipsheet/katiepavlich/2021/05/07/biden-attempts-to-spin-disastrous-jobs-numbers-n2589122.

Short story:  The private economy – left alone – would roar out of COVID.  Instead, Biden and Democrats are hitting it with mass debt and spending, setting up higher inflation, taxes, interest, and unemployment.  Radar blips are clear – and getting closer.  Americans should plan and then tell every public official to stop spending their money.

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Laura Van Overschelde
4 months ago

The Biden administration is proving it has little respect for the American way of life, much less our people and their choices made in the voting booth. And it appears that their disdain for us is increasing with inappropriate virtue signalling as well as the lack of a fund knowledge to steer this country BACK to its former successful self. It is past due for this Administration to step down as we see the success of the many audits coming forward to prove Donald J. Trump won the 2020 election.

Don Graves
4 months ago

Likewise, FDR did all the wrong things in a recession, making it a depression. Government’s cure is worse than the disease.

Bill on the Hill
4 months ago

This Manchurian candidate ( Biden ) is hell bent on collapsing the US economy, period. Biden & his Obama era cohorts along with their deep state players are shooting for the global reset & bringing the US in line with the rest of the world moving forward. The ” Plandemic ” sent around the world thanks in no small part to the Wuhan Virology Labs inside CHINA by the CCP was planned in advance to induce fear into people’s lives, shutting down businesses & schools, etc. It played right into the FRAUDULENT 2020 Presidential Election with executive branches of gov’t ILEEGALLY changing election laws, NO LEGAL STANDING according to all state courts, both upper & lower court judges were bought & paid for & it goes all the way to SCOTUS. Big Tech social media allowed to SHUTDOWN an American president, even the liberal to the extreme European nations are in total disbelief this could have ever happened & it continues. Big Tech along with US corporations are more powerful than the US gov’t itself. The entire US gov’t, i.e. DOJ, FBI, CIA & most of the NSA needs to be completely scrapped & rebuilt from the ground up as in ALL positions from the top down have to go with 1000’s of arrests long overdue. By now all of us know the big names that have yet to be held accountable, i.e. here are a few & no doubt I will miss some names: HRC, Obama, Biden, Holder, Comey, Brennan, Rice, Wray, Schiff, Pelosi, Schumer, McConnell, Cheney, Romney, Winters, Swallwell, Feinstein, Justice Roberts, AOC, Tlaib, Pressley, Omar. I’ve only scratched the surface here, there are considerably more, sadly… :~(
Thank you… :~)

Tina
4 months ago

We see no good coming from the Dems. They are not for the American people or the country. We and our children and their children will have to pay for all the spending being done by idiots. President Trump was so right that if biden got in we would lose this country and we’d see the worst hell on earth. I hope those who voted for this prez. in name only are happy with their choice because they will be suffering along with all of us!

Pat R
4 months ago

What better way to bankrupt the country thrusting us into 3rd world status. That seems to be the agenda of Dems/left since Obama especially.

TED DEHAAN
4 months ago

BIDEN IS RAISING THE COST OF LIVING 500 % is he going to raise social security 500% OR JUST THE MIN. WAGE FOR THE ILEAGAL ALIIENS SO WHEN HE WAVES HIS MAGIC WAND AND GIVES THE INSTANT CITIZENSHIP JUST BEFORE THE NEXT ELECTION

fools
4 months ago

Let’s be honest here, Obama is running this charade!!!

Marilyn
4 months ago

Maybe we should all refuse to pay our taxers. Claim the maximum during the year and create a massive amount of deductions. In other words, cheat. In other words, fire the government. They are on our payroll. Far-fetched idea but if everyone did it, there is no way they could come after all of us and if they did, have your defense ready. Extreme governments need extreme measures, no? LOL

JRA
4 months ago

What needs to be understood is that this is all part of the plan and is necessary in order for the government to take full control and put a communist government in place. Look at what Saul Alinsky has written about the steps needed to turn a country communist (under the guise of socialism). They’re following his steps to the letter.

Last edited 4 months ago by JRA
Bill on the Hill
4 months ago
Reply to  JRA

JRA, you are 100% correct… Speaking of Alinsky, HRC wrote her college thesis on Saul Alinsky & Obama is well read on this subject as well, coincidental (?), hardly… :~(

Barbara Piram Smith
4 months ago

I agree that Biden is destroying America. We were doing well under President Trump but now we have someone who I believe is on the verge of senility who does not know how to manage our country. I am very scared of what is to come over these years with Biden as President.

Bill on the Hill
4 months ago

You have every right to be scared Barbara. Biden won’t live through his faux presidency. He needs to be removed before he dies or before he becomes altogether completely mentally incompetent, although some would argue he is there now, myself included… Who replaces him is the real scary thought imo. His low intelligent VP would be the death punch this nation can ill afford at this late stage.

Joe
4 months ago

Hidenbiden is a blithering idiot, he is the worse presidentsince obuthead, in 4 months he has destroyed America in every way possible. It’s time to run this lying,corrupt,racist,puppet, out of office before he starts WW3, he is only president in name, he wasn’t elected, but installed by the deep state.

sue
4 months ago
Reply to  Joe

he is by far MUCH worse than obuthead, in my opinion. And, B.O. was pretty bad.

Marla
4 months ago

We must STOP the democracts from spending any more money

MariaRose
4 months ago

Why don’t we start with the “hack” of the pipeline and the massive hysteria stockpiling by people who bought extra because they can’t curtail their impulse to drive their cars around unnecessarily, because it is not because they are commuting to work if they are still WFH? This is just a ploy to raise the prices and force the undependable “Green New Deal” energy on us. All I can say is you voted for this insanity, now enjoy what you reaped.

Ron Howard
4 months ago
Reply to  MariaRose

Reaped on the rest of us!!!

Hal
4 months ago

And as those 7 items become more recognized and ineffective in maintaining popularity of the DemonRats, the 8th item will come in to place …. ill-advised WAR against a weak anti-US nation.

MariaRose
4 months ago
Reply to  Hal

Yeah, they are pushing for a war, because war is profitable to some people, no concern for our soldiers. That pullout of our troops is merely having them move across the border to the next-door country.

HocasPocas
4 months ago

What small business? When those communists are done with their plan, there will be no small businesses. We will all be there peasants working for our daily pentance of bread and water

Ed J
4 months ago

Poor Halfheimers (50% of Alzheimers) Joe (who forgets where he is half the time, and the other half, forgets what to say). “Biden the Inept” is the quintessential poster child for continuously acting like someone who took a 5-hour Energy drink about 6+ hours ago! And, yes, he is the Straw-Man Leader of the Great Reset manipulated as a perfect marionette by the Demsheviks. In the final analysis, so-called Biden-omics is in reality Disaster-nomics for America.

Felix
4 months ago

The Biden administration and the democrats supported by CNN, MSNBC, CBS, NBC,ABC, The New York Times, the Washington Post and other leftist socialist media know what they are doing manipulating all the Dancing with the Stars clueless population to believe that conservativism is the problem. And you know what? They are succeeding.

Kevin S
4 months ago
Reply to  Felix

Who thought “bread and circuses” couldn’t happen to the greatest republic ever founded – I sure didn’t !!

Tim Thompson
4 months ago

Seems the proof is in the pudding. Already inflation seems to be jumping up and rearing it’s ugly heat and why not Biden is going into debt faster than the history of every President since Washington was our 1st. Thought Obama was bad, well Biden is taking the cake and picking up where Obama left off guaranteeing America’s debt will never be able to be paid off. Our gas prices are through the roof now thanks to his cancelling the Canadian pipeline killing Union jobs faster than a blink of an eye. Thank a Democrat for all that going on now, even though Biden couldn’t win unless the well oiled deep state planned flawlessly how to cheat during the wee hours after 12 PM on the 5th of November.

TomB
4 months ago

hate to say this but we are screwed. We are Greece but don’t realize it yet.

Honey
4 months ago

Between the ignorance of liberals, who are opinionated but know nothing about what is going on because they all use the same news sources with their selective indignation, and the deliberate agenda of the left to destroy our Constitutional Republic, we are in big trouble.

We MUST stop S.1 or we will forever be a one party Communist dictatorship.

After we do not allow that to pass, we must piecemeal try to stop the rest of the left’s agenda to bring this country down.

If we can stop most of the damage they are trying to bring about, in 2022 we must win back the House and Senate big time, we must win governorships and most important we must win more state legislatures.

It must be a rout. Obama must lose his so lusted for third term once and for all time.

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