|Unleash Prosperity Hotline
|1) The Biden Economy In Two Pictures
Rep. Roger Williams, a Republican from Texas, owns auto dealerships in the Dallas area. He normally has an inventory of about 500 to 1,000 cars and trucks on his lots. Today, he tells us he has 14 cars for sale. He blames the empty lot and surging prices on the supply-chain disruptions and the computer chip shortage. “We don’t sell anything below sticker price today,” he says.
This never happened under Trump.
|2) Biden Spending Plan Will Push National Debt To 300% Of GDP
We’ve argued that the official final price tag for the Build Back Broker bill is pretty irrelevant since, as the WSJ puts it, the Democrats are using “fake accounting.”
What is fiscally devious about this spending plan is that it plants at least five new entitlement seeds into the budget – such as child care subsidies, free pre-K funding, mandatory paid parental leave policies, eye and dental coverage under Medicare, and expanded eligibility for ObamaCare subsidies.
Much like the entitlements of the Great Society era and Obamacare – these programs will sprout into budget busters over 10 and 20 years.
Entitlements are the budgetary equivalent of viruses.
We’ve run the budget models to estimate what these programs will do to inflate the federal budget over time.
The chart below shows that Biden’s multi-trillion spending bills will modestly inflate the debt over the next 10 years so that debt rises in 2021 to about 112% of GDP. But once these programs get rolling, they will cause an explosion in red ink in years 11-30. By 2049, federal debt will rise to three times the size of the economy.
Raise your hand if you think that’s a smart thing to do.
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