Bidenomics Explained
You no doubt have heard the term “Bidenomics.” It’s meant to express the economic policy and legislation passed for the economy as it unfolded under the stewardship of President Biden.
I invite you to read on but let me state at the outset that Bidenomics is a mess.
In searching for who coined the term, one source indicated that President Biden himself did it. I doubt that because earlier this year he indicated he didn’t know what it meant.
Regardless, his staff and now he has specific and ideological reasons for the term.
They say it’s an idea counter to Reaganomics which was ‘trickle down’ economics while Bidenomics is ‘middle out,’ focusing on building a strong middle class without a trickle-down wait. The mantra espoused now is growing the economy from the middle out and the bottom up – not the top down, whereas Reaganomics revolved around tax cuts for the wealthy and large companies. Reagan economic supporters say the benefits flow down to middle-class and working Americans, boosting economic growth more broadly.
Biden rejects that theory, calling for ensuring the wealthy and large corporations pay their ‘fair share’ of taxes. In addition to raising the corporate tax rate to 28%, he has imposed new taxes on natural gas and imported crude oil of 16.4 cents/barrel, and raising the tax on coal mining from 50 cents to $1.10/ton. Further, the so-called infrastructure bill imposed a minimum tax of 15% on the corporate income tax rate.
I don’t know who he expected to pay for those increased taxes on corporations and fossil fuels, but apparently, he/they didn’t think the consumer would see their prices go through the roof. Building the middle class? I don’t think so.
A fact sheet developed by the WH after Bidenomics was adopted breaks the theory into three parts:
- Making public investments in America
Expanding high speed internet service, direct funding and tax incentives for construction – particularly manufacturing.
- Empowering and educating American workers
Supporting unions and apprenticeships, creating jobs and better benefits.
- Promoting competition
Helping small companies compete, banning non-compete clauses in employee contracts, reducing insulin prices, and targeting “junk fees.”
So that’s how the WH and the President now define Bidenomics. I hope you understand it and what is happening to make it work. I don’t. It’s not economics.
But let’s take a short look at what has really happened to the supposed growing the economy from the ‘middle out.’
Attempting to eliminate domestic production of oil and gas from his first day in office while at the same time taxing imports of those fuels hit the middle class immediately in their pocketbooks.
The trillions in additional spending passed by the three major 2021-22 bills encompassing 1) the unneeded 3rd COVID Relief Bill, 2) the Inflation Reduction Act and 3) the Infrastructure Act only favored solar and wind companies. They added so much to inflationary pressure it topped out at 9% before forcing the Federal Reserve to go on an interest raising spree to get it somewhat under control.
So, while the middle class was paying much more for energy due to Bidenomics, increased interest rates on loans for small businesses and mortgages put the cost of starting/running a business or owning a home out of reach.
Adding to the crunch on the middle class of inflated prices, this administration has failed to address anything to help with the exponential increase in crime in many areas. Further, the porous southern border and failure to address homelessness on the streets has resulted in unsafe and unhealthy neighborhoods in middle class neighborhoods. Support for the unions, particularly the teachers’ unions, has led to the lowest proficiency of all K-12 students in reading, math, and science in decades.
As the administration has adopted the term Bidenomics and is now using the term in campaign speeches, the message of growing the economy from the middle out has “incredible” attached to it, from my perspective.
As stated as the onset, Bidenomics is an unbelievable mess.
The latest polls reflect less than 40% voter approval of the current President’s actions. People are worse, not better off.
Assuming President Biden runs again in 2024, he has a mountain to climb to convince enough voters that Bidenomics is working.
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Have a great and prosperous week.
Hug somebody.
References:
https://www.cnn.com/2023/06/28/politics/bidenonmics-explained/index.html
https://news.yahoo.com/jumbled-mess-bidenomics-brand-leaves-130000064.html
https://truthinplainsight.com/list-of-biden-tax-hikes-hitting-americans-on-jan-1-2023/
SPIDER Bites
This week’s trivia question: What is the medical term for bad breath? The answer to last week’s question of what the raven says in Edgar Allen Poe’s The Raven: Nevermore. Those familiar with the poem may remember the opening line: Once upon a midnight dreary, while I pondered, weak and weary. Much of what Poe wrote in his stories and poems was dark and ‘nevermore’ referred to loss and grief.
An estimated 30 million people will fly this Thanksgiving week. The Transportation Dept reports 77% of air traffic control facilities are understaffed.
Several neighbors received scam messages from sites supposedly representing Best Buy and Amazon recently. Know where your delete button is.
The MLB owners approved the move of the Athletics from Oakland to Las Vegs last week. The new Vegas ballpark should be finished before the 2027 season.
Many NYC illegal migrants refused to take the bus to a new shelter spot in Brooklyn last week. Those sheltered in hotels thought moving to a tent was unacceptable. Some indicated they were going ‘home.’ So much for “asylum” – in sanctuary cities.
Speaking of immigrants, there were 269,735 Customs and Border Patrol (CBP) encounters along the southwest border in total last month – a new record – and a new fiscal year high of 2.47 million entering the country. How does it feel to be supporting all these additional people who just simply walk in? Oh, I forgot – compassion.
News about U.S. policies is known to spread quickly via word of mouth among smugglers and migrants. The new federal CBP One app allows illegals to pre-register and quickly process at the border. How is this ‘open invitation’ immigrant surge and draining of government funds at all levels justified?
There’s an IDF estimated 300 miles of tunnels under the Gaza strip. Israel will need to control and destroy all that network to find the hostages and eliminate Hamas, an extremely dangerous task. They’ll use lots of robots when first entering these caves.
In this country the anti-Semitic, pro Hamas, misguided protests continue, especially in NYC and Wash. DC. 300,000 peaceful pro-Jewish/Israeli protesters gathered in D.C. last week. 150 pro-Hamas protesters attacked DNC headquarters. Six police officers injured, only one arrest. That attack was obviously meant to induce police to ‘violently’ react and again be considered bullies. This hate has no place in America.
While developing solar power as a significant source of generating electricity in the future, Florida power companies are again considering unsubsidized nuclear. The reasons: it’s cheaper than subsidized solar, it’s more efficient and reliable, with new technology it’s even safer than before, it takes a lot less valuable land to generate more power, and there’s no emissions. Let’s see if the Nuclear Regulatory Commission continues to make nuclear power plants difficult build/operate, and relax the current impossible requirements.
The President met with the Chinese President last week in San Francisco. I haven’t heard of any significant agreement on anything, but the city cleaned up the homeless mess for the visit. No journalist was inquisitive enough to ask where the tent/cardboard box dwellers went.
Oh, Congress avoided another government shutdown by raising the debt ceiling. What else can they do after they approve of the irresponsible spending?
