President Joe Biden visited Boston, MA, on Monday, September 12, to praise his version of America’s economic growth and hype up his bipartisan infrastructure legislation. He stood in Terminal E of the Logan Airport, a facility that was granted millions of dollars for improvement. In a speech blessedly absent of anti-fascist and extremist accusations against MAGA Republicans and voters, the commander-in-chief stayed mostly on topic, explaining how billions of dollars would be used to improve infrastructure across the nation, beginning with the City on a Hill.
Once finished explaining how his infrastructure bill will help America’s airports become world class, the president took the opportunity to extol how great the economy is bouncing back under his careful watch.
Biden’s Delusional Economic Growth
The president made several claims that would, to those not in the know, suggest America’s economy is coming back quick and strong. We decided to test those statements with Liberty Nation Economic Correspondent Andrew Moran, and here are the results:
LN: Biden said his economic strategies won’t hurt the rich, will help the poor, and will give the middle class “a little breathing room.”
Moran: Of course, it won’t hurt the rich, but it won’t help the poor at all and will not give the middle-class breathing room. Taxes will increase, except for those earning between $10,000 and $30,000. Any supposed easing for the middle class, like the $7,500 tax credit for EVs, led to the unintended consequence of automakers increasing prices by that same amount.
LN: Biden said, “We started with the American Recovery Plan that’s taken us from economic crisis to economic resurgence.” Is this true?
Moran: The US slipped into a recession in the first half of 2022 amid soaring inflation. The Federal Reserve is raising interest rates, which is leading to higher borrowing costs and even higher living costs for indebted consumers. The S&P Global Manufacturing, Composite, and Services PMIs are at or near contraction territory. Regional Fed Bank surveys are at or near contraction territory, too. Even the White House expects economic growth to slow down. So where is this resurgence coming from?
LN: The president talked about the cost of fuel next, saying the price of gas is down $1.30 since the start of the summer. “We’re seeing hopeful signs of progress on inflation as well,” he opined, adding that “inflation eased in July.” Do you think this is an accurate explanation?
Moran: Yes, the jury is out on this one. We shall see if inflation pressures ease. But there is a concern that the core inflation rate will rise because of broad-based inflation pressures and consumers shifting from goods to services. Also, gas prices have only come down because of falling consumer demand in the US, recession fears in global energy markets, and China’s lockdowns.
LN: The president took an opportunity to insult the Republicans, saying, “And guess what, when you hear your Republican friends or anybody else tell you, ‘Boy, they’re spending a lot of money,’ guess what, we cut the budget $350 billion last year.” He also claims to have reduced the deficit by more than $1 trillion this year. Is this true?
Moran: This is misleading because the federal budget and deficit were cut because of expiration of pandemic-era spending. Nearly all forecasts and even the White House’s projections show $1 trillion budget deficits are going to be the new normal.
LN: Finally, after touting economic growth, Biden had this gem to impart: “The biggest reason for inflation last year was the cost of automobiles. Because there weren’t the chips to build the automobiles.” Can just one industry really be to blame?
Moran: Who believes this nonsense? If you look at the CPI report, nearly everything is up across the board year-over-year. Also, and perhaps this is a philosophical disagreement, but the Fed creating $6 trillion out of thin air in a two-year span will result in rampant price inflation. Plus, Washington injecting stimulus led to too much money chasing too few goods.
So it’s no doubt Biden’s speechwriters loaded up on positive-spin pills to craft the address. Some observers see behind the happy talk of ballooning inflation, tax hikes all around, and no sign of government belt-tightening.