This week there is the likelihood that we will be presented with a new spending proposal from the Biden administration, meant to cement his overreaching agenda. This will be the effort to both spend heavily on infrastructure and domestic economic plans, as well as establish the green energy pipe dream Biden and his cohort Alexandria Ocasio-Cortez have planned. This new spending plan will be divided into two prongs as it promises to be so large that the term "omnibus" will be rendered quaint upon its reveal.
This is a proposal, unseen at the moment, that already is being veiled with euphemisms, such as investing in proposals and establishing what they dub will be their care economy. Press Secretary Jen Psaki has also added to the coyness, describing another goal for them is to "reform our tax code so it rewards work, not wealth." This is a cute dodge away from saying they want to soak the rich and corporations.
It has been with a dizzying brazenness that the Democrats on The Hill have passed massive bills supposedly designed to aid struggling Americans, which have been instead laden with spending earmarked for things wildly out of phase with relief. The Dems justified this by saying that the bill was loaded with items serving a needed stimulus plan, to also jump start our economy. Two problems were found with their proposal.
First, the economy has actually not been in need of stimulating. We are already beginning our recovery out of the manufactured pandemic shutdown, with the economy currently growing at a rate of over 8 percent. Secondly, their spending was largely devoid of stimulating effects and was instead going towards debt payments for special interests. Hundreds of billions went towards payments to states and local governments experiencing budget shortfalls, schools and universities were also given red-ink funding, and unions were cut checks to bail out their pension programs.
Paying off notes is not a growth enterprise. Toss in tens of billions more for government programs like transportation and bolstering Obamacare, and you find that the relief aspect of this so-called relief bill was dwarfed by spending that did not go towards the aid of citizens and businesses. It has been calculated that $850 billion went towards actual relief in the bill that ended up costing over $1.9 trillion.
Now Biden has plans to outspend that massive figure.
Continuing with their linguistic window dressing, the Biden White House called that last bill the "rescue plan," and this upcoming proposal to be called the "recovery plan." The way they envision us "recovering" is to lay out even more profligate spending. The upcoming plan is expected to weigh in with a $3 trillion price tag. As the New York Times detailed, that new program will be "partially paid for" via tax hikes. Given that this plan is not going to be funded adequately it appears much of the job creation will be with printing press operators at the Federal Mint.
The stimulating aspects of this behemoth are as equally dubious as the relief bill had been. As part of the planned infrastructure outline there are projects for Biden’s pet focus of trains, as well as research and development for "climate related" proposals. (This provides echoes of the billions of dollars Biden’s former boss dropped on green energy companies which are no longer in operation.)
On the domestic agenda there are numerous other non-invigorating spending proposals. Estimates have been saying there will be at least $100 billion on education infrastructure, as well as spending programs for universal pre-K education, childcare payouts. A significant amount of this is spending that does not lead to stimulation or growth, and much of the money is created out of whole cloth, taking the term deficit spending to a new nadir.
Looking at the last round of stimulus checks It has been calculated that for those receiving the $1,400 relief the delivery bill will end up costing them over $5,000 in tax revenue to support it. Now Joe Biden has plans to exceed that monstrous figure. As usual, when Democrats state they want to invest in our future it ends up being a reality where we are required to ultimately pay out the dividend checks.