Concerning economic direction, it’s clear the Biden-Harris administration’s approach is steering ominously towards the central planning model. This concern has been magnified by Vice President Kamala Harris’s shocking suggestion of implementing Soviet-esque price controls for grocery items. The reasoning behind such a drastic exercise is another administrative blunder, wrongly blaming inflation on the perceived greed of businesses, paying no heed to their administration’s questionable fiscal acumen.
This strategy to pass off the economic frailty as strength is just another feather in the hat of the Biden-Harris admin’s continuously controversial economic measures. Recently, they announced a revival of the pandemic-related stimulus program, Employee Retention Tax Credit (ERTC), despite having closed it down a year ago due to serious fraud issues.
Regardless of knowing that the past implementation of ERTC was riddled with fraud, the Biden-Harris administration seems to pay little mind. The alarming fact that Senator Ron Wyden of Oregon reported nearly 95% of ERTC claims were fraudulent seems to hold no water with them. Instead, they are gearing up to send out another round of payments, with at least $5 billion in the pipeline for September itself and an additional estimate of a whopping $20 billion by the year-end.
Ignoring the harsh economic reality of soaring inflation is another trick the current administration along with allied media factions is using to cover their tracks. It’s a disservice to the American taxpayers when reality is twisted to serve political purposes. The ramifications and backlash of such unsustainable fiscal practices would inevitably have to be handled by the poor taxpayers.
Speaking of unsustainable fiscal ventures, let’s turn our eyes to Biden’s audacious ambition of student loan cancellation. Apparently, under their rule, it’s justifiable to forgive a staggering $168 billion in student debt, regardless of its detrimental economic implications. Such patronizing acts hold little merit but expose an already strained economy to further distress.
The Biden-Harris administration bafflingly chose to forgive debt of those who voluntarily pursued expensive, often commercially insignificant degrees, when millions of jobs are available. Meanwhile, individuals who opted out of college due to financial constraints have received no such financial relief. This raises severe questions about fairness and equity in the administration’s policies.
National security isn’t exempt from the reckless decisions of the Biden-Harris administration. They have depleted the inventory of the Strategic Petroleum Reserve at a volatile time when the Middle East is potentially teetering on the brink of conflict. Established in 1975, the reserve was meant to be a national security asset, not a political tool to momentarily placate economic discomfort.
Given the growing instability in the Middle East, the administration’s depleting reserves and failed attempts to suppress oil production are both dangerous and short-sighted. With reserves currently at the lowest point since 1983, we have between enough oil to last us less than 20 days. This shows an alarming disregard for the country’s energy security in favor of delusional environmental ‘goals’ that seem to cater to the rich while distressing the middle class.
Treasury Secretary Janet Yellen’s ploy to bolster short-term rates by limiting the supply of Treasury notes and bonds has put the American taxpayer at grave risk. The precarious state of the American debt is evident in the fact that about 35% of it matures within the next year and over half within the next three years. This type of fiscal mismanagement is fraught with dangers.
The consequences of such imprudent fiscal behavior are bound to manifest themselves. The debt interest expenses have already started overshadowing the defense budget and by 2025, it is anticipated that it will bypass Medicare as well. Not only would this put more strain on the national debt, but it would also risk sidelining the private industry’s access to reasonably priced credit.
The ostentatious banner under which all these moves are made is the so-called Modern Monetary Theory (MMT). A theory the administration leans on to sustain their practices, stating that deficits and debts don’t matter for countries blessed with a world reserve currency. However, history has shown that this ‘exorbitant privilege’ tends to be misconstrued and misused, leading to the downfall of once prosperous societies.
Any false sense of entitlement thinking that this reserve currency privilege is akin to a divine right is inherently flawed. The cyclical nature of reserve currencies throughout time serves as a stark reminder. Eventually, the bills will arrive for America’s recklessly uninhibited fiscal ways and sadly, the American citizens will be the ones left facing the consequences.
The Trump-Vance ticket, however, promises a way out of this downward spiral of short-termism that’s defined U.S. economic policies in recent times. Their advisers’ effective ‘three arrow’ program could steer the nation back towards sustainability. By allowing capital spending and productivity to drive economic growth, they plan to arrest the decline of what should be a prosperous society.
Equipped with advisors like Scott Bessent, the Trump-Vance alliance has presented a feasible plan to deal with looming economic risks. A combination of pursuing a 3% real GDP growth via de-regulation, freezing non-defense discretionary government expenditure, and boosting crude oil production would put America on the road to recovery. A stark contrast to the current myopic economic approach.
Biden-Harris Administration’s Fiscal Acumen: A Recipe for Disaster appeared first on Real News Now.
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