LTP News Sharing:
“Senate liberals and Joe Biden are demanding economic policies that, frankly, sound like economic disaster.”
That’s the prognosis of Project 21 member Michael Austin, an economist who has been recognized by the American Enterprise Institute as an emerging poverty scholar.
Assessing recent economic policy pronouncements coming from liberal politicians and their possible effects on American prosperity, he said that radical lawmakers are casting aside sound judgment in a quest to please far-left constituencies:
In the Senate, Majority Leader Chuck Schumer called for raising tax rates, while Biden is indicating he wants to transfer student debt to taxpayers. What explains this horrible messaging? Not economic necessity. It’s sheer electoral desperation. D.C. liberals concede they can’t convince everyday Americans that their policies work. Now their comments reveal a focus on the midterm elections.
This means throwing working-class Americans under the bus.
In many ways, these politicians are working against each other in ways that will guarantee optimal suffering for Americans already suffering from staggering levels of inflation:
Let’s break down the economics behind these two comments.
Schumer tried to convince the American public that the “only way” to get rid of inflation is to “undo a lot of the Trump tax cuts and raise rates.” Facts say the opposite. Actually, Trump’s tax relief led to increased federal tax revenues, lower tax burdens and lowered inflation. Yet Schumer insists Americans need to be paying more of their earnings to the federal government instead of spending it. This, he seems to think, will drive prices down.
Take this in stark contrast with Joe Biden’s call for “forgiving” student debt. Quite frankly, student debt forgiveness is a pretty political speech for transferring your hard-earned dollars to doctors and lawyers. In effect, it means the wealthy and students have more discretionary income to spend. This will drive prices up.
Together, taxing the United States into a recession and transferring student debt to the taxpayers will have opposing effects on inflation. What is clear is that they will create utter economic chaos. The only economic explanation for this is that it’s not explainable under existing economic theory.
And while liberals seek to bolster their base, Michael believe it may have the opposite effect – causing the scales to fall from the eyes of independents and even liberals suffering in the Biden economy:
If there’s any silver lining, it’s that the left has conceded that American families need economic freedom – not government planning – to see true relief. The bad news is that they no longer care.
Thomas Sowell famously quipped that the top two goals of a politician are to get elected and to get reelected. Only the far-left fringe is encouraged by raising tax rates and transferring student debt. It’s unfortunate that Joe Biden and Chuck Schumer are more concerned with woke voter turnout than making America an easier place to raise a family and run a business.
Author: David Almasi