What exactly is Bidenomics? If you cut through all the spin, it basically is a continuation of government intervention into free-market capitalism. It is more like crony capitalism with ESG blended in. According to Mr. Biden, economic growth emanates from a bubbling up and out rather than a trickling down of productive prosperity. If this were true, it might partially work, but it’s not even factual.
Unlike Reaganomics, wherein a rising tide can lift all boats, Mr. Biden’s approach is a sinking dead weight on medium and small businesses due to a burdensome regulatory and tax environment. At the same time that he rails against corporatism, Mr. Biden has offered special incentives and tax breaks to big business. That can hurt smaller businesses that contribute an array of goods and services to American consumers.
Over the past two plus years, stubborn inflation has persisted because Mr. Biden has rejected American energy autonomy in favor of a distant green fantasy that likely won’t materialize. Fuel prices have doubled since late 2020 during the Trump administration, and food prices haven’t come down to earth. If Mr. Biden calls this a sound economy, one would hate to visualize what a bad economy would look like.
While employment figures have improved, most of the jobs are a result of folks returning to work following draconian pandemic lockdowns. Countless numbers of businesses folded during the pandemic, especially in the blue states. Millions of Americans had to start over due to an unnecessary and unprecedented power play by federal and state government agencies. That fallout continues to be a drag on the economy.
In California, Gavin Newsom has copied the same playbook as Bidenomics on the national level. High- and middle-income folks are fleeing to booming Midwestern and Southern states due to California’s heavy regulatory and tax structure that offers very little bang for the buck in return for collected local and state taxes. Crime and homelessness have escalated through policies that enable immoral behavior. Dump truck loads of taxpayer dollars have been thrown at the public schools, yet student reading and math test scores remain in the basement.
Similar to Joe Biden, Mr. Newsom’s concept of a good economy is greater government spending even if it means turning a huge budget surplus into a $30 billion deficit. This reckless spending of non-existent money with no thought for tomorrow is why inflation is persistent and private sector innovation and productivity are stymied.
Yet Mr. Biden and Mr. Newsom refuse to learn from the failures of economic malaise, and thus are doomed to repeat history. They tend to blame companies or the GOP for their own self-inflicted wounds. This evasion of responsibility is the opposite of Harry Truman’s “The buck stops here,” acceptance of accountability. One can only speculate as to why they are so out of touch with the hopes and dreams of most Americans.
Instead of waking up, Mr. Biden and Mr. Newsom double down on harebrained schemes such as a battery-run society, open borders, race-based quotas, “free” handouts, student debt erasure, etc. These meritless goals are colossally expensive and serve to undermine liberty and the rule of law.
By contrast, a sound economy can be restored through both bottom up and trickle-down activity. Small business entrepreneurs are the backbone of our society in terms of innovation and quality choices for the consumer. Moreover, wealthier folks can invest in a company and hire larger numbers of employees who receive benefits and wages. If regulations and taxes are reasonable, the company grows, which triggers employment growth and a range of products and services for society.
The federal and state governments shouldn’t meddle except in cases of fraud or attempts by large- or medium-sized firms to create a monopoly through intimidation. An example of fraud would be a private technical college promising graduates with job placement and failing to deliver on that assurance. False advertising is another example where some regulation is necessary.
Finally, both Mr. Biden and Mr. Newsom could use a course in basic supply-side economics, which includes minimal regulations, tax cuts, and prudent government spending. Calvin Coolidge, John Kennedy, and Ronald Reagan utilized these principles which unleashed dynamic growth. Productivity should always exceed debts in both the private and public sectors. Unfortunately, Mr. Biden and Mr. Newsom endorse voodoo economics conjured out of thin air, which can distort the free exchange of goods and services. Their policies hinder economic prosperity, which in turn can erode our national security.
