By Michael Todd
If anyone believes that Joe Biden and a Democrat-controlled Congress is good for the economy, you are sadly mistaken. His administration will implement an aggressive government expansion that will stifle economic growth through high taxes and over-regulation. Once again, our country will be at the mercy of globalist puppets, whose only goal is to enrich themselves instead of working to ensure our nation’s stability.
With his proposed tax increases on businesses and corporations, households’ will feel the indirect effects at every income level. The workers will be the first to experience the results of such actions with fewer job opportunities and, in many instances, the loss of their jobs. It will also negatively impact wage growth, forcing companies to raise wages less than they otherwise would.
Despite Biden’s claims that no one making under $400,000 a year would pay more in taxes, everyone will inevitably feel the pinch. First, Biden is calling for the reinstatement of the individual mandate under the Affordable Care Act. That coupled with a multitude of new regulations on energy, health care, manufacturing, etc., will most certainly cause the economy to stall as it did under the Obama Administration. Analysts at the Hoover Institution calculate “that over the next decade, these changes would prompt the economy to shed 4.9 million jobs and the gross domestic product to drop $2.6 trillion.” They also calculated that by 2030, “U.S. consumption would be down $1.5 trillion and median-income households would make $6,500 less.” While the U.S. economy might not stumble overnight, the long term corrosive impacts of raising the cost of capital and reducing the incentive to work and invest will severely decrease productivity across the entire economy.
Biden has pledged to “aggressively pursue employers who violate labor laws, participate in wage theft, or cheat on their taxes by intentionally misclassifying employees as independent contractors” and “establish an Environmental and Climate Justice Division within the U.S. Department of Justice.” This will yet again create a scenario where corporations would be more inclined to make their products in another country rather than worry about schizophrenic regulations and taxes that would make their products uncompetitive.
This isn’t just bombastic rhetoric on the part of Joe Biden, but a philosophy of thought generated from the extreme elements of the Democrat party. Depending on what transpires during the Senate runoff elections, these policies will likely become law, undermining economic growth and moving us backward.
If one thing is for sure, the Biden administration will have to take a direct stance on their policies if there is an evenly split Senate. With Harris most likely having to be the deciding vote in the Senate on policies that will most assuredly raise taxes on everyone and severely depress the economy, the Democrats will not be able to blame their mistakes on anyone but themselves.