President Joe Biden admitted Thursday that his "Build Back Better" economy wasn’t turning out the way he’d predicted.
"I know many Americans are still struggling to make it through each day," he said. "For too many, it's harder and harder to pay the bills, food, gas, rent, healthcare."
Consumers have seen prices rise at the pump from the first month of his presidency, and Biden specifically addressed that.
"There's lots of evidence that gas prices should be going down, but they haven’t,” he said. "We’ll be taking a close look at that."
So now we know that kicking oil and gas producers off of public land didn’t work.
Last week, National Economic Council Director Brian Deese addressed another concern of U.S. consumers — skyrocketing food prices.
He confirmed what every American household already knew — that " . . . the appropriate focus is on the question of grocery prices and the increase in grocery prices that we have seen recently over the last couple of months."
But he saw a bright spot in the data.
"If we unpack that," Deese said, "one of the interesting findings of the report that we put out today is that about half of the overall increase is in grocery prices can be attributed to a significant increase in prices in three products: beef, pork, and poultry."
So you see, all you have to do is stop driving your car to work, and also stop eating meat. If you do that everything will be just fine.
But to address the problem of inflation in the future, and alleviate "the crisis of extreme weather events," Biden urged Congress to approve his $3.5 trillion "infrastructure" bill, which he claimed was "fiscally responsible" and "fully paid for."
But it turns out that the spending bill, and the tax hikes that go along with it, would actually shrink the economy.
A Penn Wharton business school study released this week strongly suggests that the bill, if signed into law, would send the economy straight into the cellar.
"Drafting a budget from the August 2021 Senate reconciliation framework that satisfies the Senate rules of reconciliation ("Byrd Rule") will require a decrease in new outlays or a large increase in revenues (or both) after the standard 10-year budget window," the report said.
"One such potential reduction in spending would allow the new non-healthcare related discretionary spending provisions to expire after 2031.
With this reduced spending in 2031, we project that the reconciliation package will decrease GDP by 4.0 percent in 2050. Without this spending decrease (and where the Byrd Rule is not satisfied), we project a 4.8 percent fall in GDP in 2050."
If you removes all the technical language, what it all boils down to is that you can’t spend your way to prosperity, and you can’t borrow your way out of debt.
These are things most Americans living and working in middle America’s flyover country have known for years, but most people in Washington, D.C. are oblivious to.
It’s also being financed, in part, by raising taxes on corporate America — which would, in turn, further raise the prices of goods like gasoline and groceries.
It would also raise taxes on dividends and capital gains — hurting retirees.
None of this was lost on Rep. Kevin Brady, a Texas Republican.
"This isn’t about corporations or the wealthy, it’s about workers," Brady said during the House Committee meeting on the legislation.
"It’s about families and customers, retirees, and communities that our businesses invest in. They bear the burden. They always bear the burden."
But then again, perhaps Biden can be forgiven. No one has ever accused him of being a Crackerjack economist. His expertise lies elsewhere, according to House Speaker Nancy Pelosi.
Speaking Thursday at the Cambridge Union in the United Kingdom, Pelosi called Biden "perfect," and someone who "knows his foreign policy."
This would be the same person who "knows his foreign policy" that trapped more than 100 U.S. citizens and thousands of American allies in Taliban-controlled Afghanistan for 34 days (so far).
This would be the same person who "knows his foreign policy" that gave the Taliban some $85 billion in military hardware and will give them an additional $64 million in “humanitarian aid,” which GOP lawmakers call "a ransom."
And in return, while Biden was speaking in Washington, D,C., and Pelosi was speaking in the U.K., that same Taliban that the White House referred to as "businesslike and professional," reportedly beheaded two young boys — ages 9 and 10.
If that demonstrates someone who "knows his foreign policy,” America should be terrified of his economic, fiscal, and monetary policy decisions.
Weak leadership creates dangerous times.
Michael Dorstewitz is a retired lawyer and has been a frequent contributor to BizPac Review and Liberty Unyielding. He is also a former U.S. Merchant Marine officer and an enthusiastic Second Amendment supporter, who can often be found honing his skills at the range. Read Dorstewitz's Reports — More Here.
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