In President Joe Biden’s mind, the American people have never had it so good. He recently issued a series of tweets that were essentially a rundown of his Bidenomics greatest hits. But while Democrats might think the White House has done an excellent job on multiple policy fronts, reality offers a different take on Biden’s America, which has been par for the course for the last two years. So, what has he done for the nation? Has he lavished the people with gifts or given everyone a lump of overpriced coal?
Correcting the Record on Bidenomics
Biden – or presumably one of his interns – tweeted that inflation is easing, gasoline prices are lower than they were a year ago, and the Respect for Marriage Act had been signed. He would later add that “we’re building an economy from the bottom up and the middle out. An economy with good jobs and good wages for the long run.” However, inflation and a gallon of gas are much higher now than when he took office, gay marriage was already legal, and real wage growth (inflation-adjusted) has fallen every month of the current administration. It is challenging to see any progress from the Oval Office.
Yeah, but Biden and the Democrats gave the country a slimmed-down version of Build Back Better, known as the Inflation Reduction Act. This legislation promises to trim the price of prescription drugs, lower energy costs, reduce the consumer price index (CPI), cut the budget deficit, and grow the economy. Unfortunately, there are many issues wrong with this argument.
The first is inflation. The bill is expected to go into law in January, so any so-called easing of consumer prices has been the direct result of demand destruction and the Federal Reserve trying to trigger a recession. Although the annual inflation rate is likely to come down even more in 2022, it remains highly elevated, caused by largely Bidenomics. Plus, as the public has learned over the last couple of years, fiscal stimulus is inflationary.
The second is the budget deficit. Biden repeatedly proclaims that he slashed the federal imbalance, but this was primarily due to COVID-19 programs expiring. In addition, many early forecasts agree that the legislation will barely make a dent to the deficit. In fact, according to the Committee for a Responsible Budget (CFRB), Biden’s overall spending has raised the budget deficit and added to the national debt.
The third subject that is worth discussing is prescription drugs. This seems an easy enough win for the Democrats. The problem? A couple of things. The Health and Human Services (HHS) Department will negotiate ten Medicare Part D drugs, and any lower prices will only go into effect in 2026. The HHS will then enter the second phase of negotiations for 15 Medicare Part D medications, and new prices will start in 2027. Two things still need to be clarified: what drugs will be targeted since talks have yet to begin and how much Americans will save. Plus, from a pure economics perspective, any time the government introduces price controls, a series of unintended consequences form, be it shortages or quality.
Joe Biden (Photo by Alex Wong/Getty Images)
Ultimately, President Biden keeps touting successes that may seem accurate on the surface. However, it is an entirely different story once you dive deeper into the numbers, announcements, and legislation. Sure, nominal wage growth is 5%, but the real rate was more than -1% in November – and weekly earnings were down 3%. Sure, the economy is adding jobs, but as Liberty Nation has reported and the Fed Bank of Philadelphia revealed, Washington has been caught overcounting the labor numbers. Sure, ten million jobs have come back to the labor market since Biden’s arrival, but these positions were returned, not created.
Give Me Coal
Bidenomics has been a dreadful economic doctrine so far. Perhaps time will heal all wounds, and historians will describe it as a landmark blitzkrieg comparable to the New Deal of the 1940s. From what the nation has learned since January 2021, Bidenomics is all about inflation, deficit-financed spending, giving the green economy a taxpayer-funded gift, and failing to anticipate anything, like soaring inflation and skyrocketing energy prices. Democrats might be bribing 300 million people with their own money and lavishing them with expensive gifts. But families would be better off receiving a lump of coal for Christmas since it would be more effective at hedging against the cost-of-living crisis and keeping the lights on and heat running than a subsidized windmill in the middle of winter.
