Penn Wharton Budget Model (PWBM) argues that Biden’s plan to raise taxes by 3.4 trillion dollars is a good thing. And that increasing spending by at least $5 trillion will be good for the economy. But is that really true?
They make the case that more spending on education will reap huge dividends. If that were the case, our economy should be booming. While spending on education has skyrocketed, grade scores remain low.
According to The Hill:
“At the end of the day, they actually decrease debt because they do have significant revenue raisers,” Richard Prisinzano, director of policy analysis for PWBM, said in an interview with The Hill. “And the economy is more productive. As we put in things like education and infrastructure, workers become more productive, and that gives a boost to the economy.”
Or as Lindsey Burke wrote last year for The Daily Signal:
Federal “Highly Qualified Teacher” mandates. Adequate Yearly Progress requirements. Smaller learning communities. Improving Teacher Quality State Grants. Reading First. Early Reading First. The dozens of other federal programs authorized via No Child Left Behind. School Improvement Grants. Race to the Top. Common Core. All of that has been just since 2000. Over those past two decades, while federal policymakers were busy enacting new federal laws, creating mandates for local school leaders, and increasing the Department of Education’s budget from $38 billion in 2000 (unadjusted for inflation) to roughly $70 billion today, the math and reading performance of American high school students remained completely flat. That is to say, stagnant.
But Biden says that he can do better. How? He was put in charge of Obama’s nearly 1 trillion dollar stimulus package. We all know what a disaster that turned out to be. The only people who are likely to follow Biden are those with morbid curiosity. Like following a drunk driver to see where he finally wrecks at.
Biden claims that he will increase funding for infrastructure, but many items Democrats consider vital infrastructure includes the Green New deal. Or as is the case in California, the high-speed rail to nowhere. Remember the Obama/Biden administration promised many new high paying jobs in the green energy field. Have you seen any? I know I haven’t. No country in the world has gotten rich by investing in green energy.
Spain was one of the first countries that attempted it. For every new green energy job created, they lost 2 jobs in the fossil fuel industry and manufacturing. But it led to massive unemployment instead. Their economy has never recovered. At the end of 2019, the unemployment rate in Spain was 13.92%. That is down from a high of of 26.94 % in Mar 2013.
California has followed a similar path over the last two decades, neglecting necessary infrastructure spending on roads, power generation, and water projects. Instead, they’ve spent billions on “green” energy sources and the infamous high-speed train to nowhere.
As a result, California’s once-fertile interior enjoys near-permanent drought conditions, the state’s highways are among the nation’s worst, and millions of residents can’t get enough electricity to run the A/C on the hottest days when they need it most.
Biden would bring California’s mislaid priorities to the nation at large.
The Biden campaign promises to raise three trillion dollars by raising taxes on people making $400,000 and corporations. That is not reality. Both the high earners and corporations have smart accountants and political connections, making that $3 trillion-dollar figure a myth, but the spending of five trillion will be reality. You can bet on that.
Raising taxes on individuals and corporations coming out of the Covid-19 pandemic does not sound like a good plan to me. It’s like cutting off a man’s leg to cure him of a minor limp.
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Author: Steven Ahle