It will be the government’s biggest expenditure since the second World War and American citizens find themselves asking why.
The budget will put the government in the red even further, as the spending plan requires $1.84 trillion more than the government earns in revenue.
As expected, the Democrats plan to fit this new bill by raising tax on higher-income households. Biden argued that trickle-down economics doesn’t work and never has, claiming that the best way to grow the economy is from the bottom up, and the middle out.
Today, I released my budget for the upcoming fiscal year. It builds on the progress we’ve made over the last few months and makes historic investments that will help our nation build back better for decades to come. Read more here: https://t.co/6dKv8wa4yI
— President Biden (@POTUS) May 28, 2021
What’s Wrong With Biden’s Theory?
Bottom-up does not work and it never has. It is in fact the exact opposite of what Biden said. Trickle down does work and the logic is this: the factory workers did not build the factory; it was built by a capitalist who attracted investors with his/her plans who then funded the construction.
How did the capitalists and investors have the money to build this factory? They did not have to give all their money to the government.
— The Hill (@thehill) May 27, 2021
For an economy to grow, you need incentives from the top, wealthy individuals, business owners, who seek to increase the size of their portfolios or expand their business. They drive innovation and growth by seeking to improve their own lot in life.
What this does is create employment for middle and lower-class Americans. On their own, they would never have gotten together to create that opportunity for themselves.
The idea that the state, after taxing the wealthy job creators, will have the incentive to create the innovation needed is ridiculous. No government ever has ever pulled this off at the same level as the free market.
Communist Russia tried it, and it may have worked on the grand scale with massive projects like mines and large industry (military sector); however, no one creates wealth like the capitalists, who through their “greed,” uplift more of the poor than any other.
President Biden’s budget is dead on arrival – just like all other presidential budgets.
It is insanely expensive.
It dramatically increases nondefense spending and taxes.
Over time it will result in a weakened Department of Defense. https://t.co/Ji6gYfLcj5
— Lindsey Graham (@LindseyGrahamSC) May 28, 2021
Why Does the Biden Admin Want to Destroy the US Economy?
It is hard to tell, but it is certain that the steps taken by the administration are a recipe for disaster. One does not create wealth and opportunity by sending the country into crippling debt, raising inflation to a two-decade high, and taxing the wealthy for everything they have.
The administration should follow the example of Ronald Regan and Margeret Thatcher, who in order to spark economic growth, reduced taxes and regulation.
A move that allowed capitalists and investors to instantly being growing business, soaking up unemployment, and setting their respective countries, The USA and Great Britain, on a path of economic boom.