POLITICO: Biden’s budget blowout predicts years of Obama-level tepid growth
President Biden’s budget promises sluggish economic growth despite trillions in new spending and higher taxes that will land on the backs of the middle class. No wonder criticism is steadily mounting. Here’s what one analysis from POLITICO had to say:
- President Biden’s budget would beat the Obama-Biden record as the worst economic recovery in history.
The President’s budget “projects economic growth of 2 percent or less per year for most of the next decade, after factoring in inflation. That’s not much different than the sluggish pace the U.S. endured in the decade after the financial crisis and Great Recession, a disappointing economic performance that damaged Barack Obama’s presidency.”
President Biden has actually bragged about how long the recovery took when he was last in the White House.
- President Biden promised a strong recovery—where is it?
April’s dismal jobs report numbers are evidence of President Biden’s ineffective policies sabotaging our economic recovery. Now, with his budget released, POLITICO asks, “So where is the ‘Build Back Better’ economic revolution that Biden and White House officials have talked up in recent weeks in selling their plans to spend roughly $4 trillion on the infrastructure and on family programs?”
- President Biden and other Democrats seem to be walking back their repeated claims that infrastructure spending would lead to growth.
Per POLITICO: “But the $6 trillion budget proposal released today doesn’t show much of a growth burst from all the proposed spending, including the infrastructure investments in the American Jobs Plan.”
Testimony before Ways and Means Republicans in April showed that any possible benefit of Biden’s proposed infrastructure spending would be outweighed by how it depresses investment, drives capital out of the United States, and results in a net negative impact on the size of the economy (GDP) and standards of living.
All Spending No Growth: “Some analysts suggested that the administration is essentially admitting that its proposed surge in federal spending — which administration officials hope to offset over time with higher taxes on the rich and corporations — won’t actually boost the economy much at all.”
These taxes are going to land on the backs of lower- and middle-income families and small businesses.