The Associated Press reports 34% of us support his handling of the economy. Voters’ assessment of the economy is dismal. Yet, Biden continues to say and do the same things. An NBC poll says 74% of us think America is on the wrong track. So, what’s going on?
The strategy is familiar. Biden is using rhetoric as a substitute for performance; it is the Leftist way. If voters dislike what you are selling, don’t change the product. Market it differently. Call it Bidenomics and the battle of the “trickle-down” straw man.
His economic message isn’t new. His arguments have been around for years. The words have no effect. You see, the cleverest slogan doesn’t disguise reality. Mr. Biden’s claim is: Wages have been growing at a rapid clip on my watch. That is true but completely wrong… Here’s why.
Mr. Biden is presiding over a decline in real average hourly earnings. What that means is, yes, wages are going up. The problem is inflation is up more. The result is: His policies are responsible for the loss of purchasing power. He made us all poorer. We can buy less with our higher wages; 3.6% less on his watch.
The worst inflation in 40 years came from gross overspending. It is compounded by Biden’s American Rescue Plan Act which flooded a recovering economy with $2 trillion of additional stimulus. It came in addition to trillions spent the previous year. The spending splurge, combined with ending energy independence plus restrictive trade policies, generated inflation.
Mr. Biden claims American billionaires are not paying their fair share. To be clear, he does not describe what share exactly is a fair share. So let’s ask a couple of questions: Would that mean we all pay the same amount? Isn’t that what equity demands; equality of outcome? Would it mean we pay the same percentage? Does the responsibility to pay depend only on the ability to pay? If that’s true, where does it lead?
The average billionaire’s tax rate is 8%, according to Mr. Biden. How would he have acquired that information? Do you want your tax return information shared with your neighbors? Mr. Biden says no billionaire should pay a lower rate than a school teacher, fireman or policeman. Why are all his examples, public employees?
The implication of Mr. Biden’s statement is the average American is paying far more than 8%. But is that true? No, no, it is not.
According to IRS data the top 1% of taxpayers pay an average effective income tax rate of 25%. Those people earning more than $60 million/year pay an average tax rate of about 22.9% in federal taxes. Again that’s according to the IRS. You can check the numbers at Politifact.
Now looking at teachers, firemen, and police, let’s assume this is a proxy for those making less than $100 thousand/year. There, we find those people pay an effective federal tax rate between zero and 15%. Mr. Biden is simply wrong in his claim, and he’s hoping he can lie and you will not have done your homework.
Mr. Biden cherry-picks positive data points to brag about instead of recognizing policy failure and changing policy. There are some positive indicators; there always are. For example, the unemployment rate stands at 3.7%. Also, there is an uptick in factory construction. The flip side of the coin is: Government subsidy is almost 100% responsible for that activity. It is not actual innate growth from the demand in the private sector.
He just keeps hoping the Federal Reserve will fix inflation. He seems like a deer in the headlights. He’s frozen in place as oblivion hurtles toward America.
Mr. Biden also speaks about the deficit. He says the deficit went up every year under Trump, and it has gone down under him. Again Mr. Biden is correct but completely wrong. Here’s why. America has not balanced its budget in more than 20 years, since 2001, actually. During the pandemic, we did some big-time bipartisan spending. Since the Plandemic years, we have spent too much but less successively.
We are still engaging in a serious and unnecessary amount of deficit spending. The difference in the rate of deficit spending is what Mr. Biden would claim credit for. The CBO has released a report saying the deficit reduction claims are not material. Over the next 25 year, our national debt is going to climb from 91% of GDP to 181% of GDP.
Bloomberg News reports such high and rising debt will slow economic growth, push up interest rates and payments to foreign debt holders, and pose significant economic risks to the fiscal and economic outlook of America.
Nobody in the District of Columbia should get credit for much of anything except irresponsible behavior. We are nationally behaving like Hunter Biden. A lot must go right for Bidenomics to succeed. The Fed must avoid the long-predicted recession. Higher interest rates might continue to trigger bank failures. The Fed’s track record is not encouraging. Inflation has been persistent.
Assuming economic success, other issues will step forward. Biden’s fitness for office is in doubt. There are reasonable concerns over the 80-year-old president’s physical and mental capacity. People his age only move in only one direction.
If you worry about Biden’s health and capacity, then you are likely terrified at the prospect of Kamala Harris. She inherits the office of president should something happen to Biden. She’s the most unpopular vice president in history. Nothing makes people feel good about Harris.
Then there’s the issue of corruption. IRS whistleblowers have revealed the schemes of the Biden family. There are Hunter’s escapades. There is Joe’s entanglement in Hunter’s scandals. There is the House of Representatives seeking to uncover the details of the Biden family operations.
The precariousness of Biden’s political position comes from the decline in the American standard of living. It is not helped by his obvious health and diminished capacity issues. It is magnified by the inept and obvious corruption. The once generally accepted genial grandpa issuing reassuring platitudes from his Delaware basement is gone. That myth has been replaced by the cranky demented octogenarian with a troubled relationship with the truth.
The nation is on autopilot. We are moving toward a general election. Will the result again be determined by narrow outcomes in three or four states? The election may depend on the MAGA/anti-MAGA struggle. How are the parties approaching the election? Which side are you on?
