The Polite Way to Say Bidenomics Is Unnecessary

Source: The Wall Street Journal (behind paywall).

“President Joe Biden is still claiming there’s an economic crisis to justify trillions of dollars in new federal spending. But it’s getting harder to make the case. On Thursday the Commerce Department reported that real gross domestic product increased at an annual rate of 4% in the fourth quarter of 2020. This follows the historic 33.4% surge in the third quarter and demonstrates a remarkable rebound from the spring shutdowns wherever state governors have been willing to allow it.

“Nationwide, the last three months of 2020 featured a robust 13.8% increase in business investment, including a sizzling 24.9% surge in equipment purchases.

“Overall, the solid 4% real GDP growth is a welcome and unfortunately rare event. The last two quarters were the first to reach or exceed such a pace during the Trump presidency. Of the 31 complete quarters during the Obama presidency, only four matched or exceeded this rate. The United States has just enjoyed the best final full quarter of a presidency since George H. W. Bush presided over a 4.2% surge in the final months of 1992.

“By any reasonable measure, the economy is not in need of a ‘rescue.’ So in a spirit of unity, how can sensible Democrats explain to President Joe Biden that his spending plans may be unnecessary, irrelevant to the issues at hand and dangerous for an economy in which federal debt now exceeds GDP?”


I doubt Joe Biden will listen to any economic advice that doesn’t include more government spending. He seems to me to be a man who thinks of federal spending as inherently good.

20 thoughts on “The Polite Way to Say Bidenomics Is Unnecessary

  1. As predicted, as soon as they lost power the “conservatives” have re-discovered their love for fiscal restraint. Too bad they forgot about it as they racked up $8 Trillion of new debt through foolish tax cuts, pointless military spending and failure to manage the pandemic.

    2020 was the worst economic year on record since WW2. And that was with almost $3 Trillion of deficit spending.

    https://www.theguardian.com/business/2021/jan/28/us-economy-shrank-2020-worst-year-since-second-world-war

    The idea that this economic mess is over is baloney. And never mind the very poor aggregate numbers or the rising price of GameStop stock, many tens of millions of people are at the end of their ropes and desperately need the help that Biden and the Democrats are trying to get organized.

    In my opinion, the Insurrectionist Party opposition to the current relief bill is about one thing – sabotaging the economy on Biden’s watch. They feed off chaos and suffering.

    Liked by 2 people

    1. RE: “The idea that this economic mess is over is baloney.”

      No one has said that. The writer of the excerpt argues that a strong recovery has already started without federal intervention.

      BTW, WSJ and The Guardian are working off the same BEA report.

      Liked by 1 person

      1. ” The writer of the excerpt argues that a strong recovery has already started without federal intervention.”

        Then the writer has no credibility whatsoever. Star with the initial CARES Act and work forward form there.

        Liked by 1 person

  2. And so it begins. Not one complaint about T****’s actions that drove the deficit through the roof through his tax cuts for the rich (that never do trickle down to the rest of us), HIS economic relief plans, or anything else that caused our deficits to soar during the past 4 years. Now WSJ is saying “Whoa!”?

    T**** was handed a rising economy and did more to boost the growth. (With little actual boost!) Biden is once again having to work through the mess left behind by a Republican President (granted, the global pandemic didn’t help, but deficit spending was already occurring) and when he does, the on-again/off-again deficit hawks come screaming out of the woodwork.

    There was quite a bit of pre-inauguration analysis showing that Bidenomics are exactly what the country needs to get the economy back on track. Now that he is implementing these things and trying to get them pushed through Congress, the “conservatives” are crying foul.

    Not surprised. In fact, I wonder why it took an entire 8 days before the calls for fiscal restraint to come roaring to the fore.

    Liked by 2 people

    1. Not really. Millions of people have huge debt problems with respect to mortgages and leases. Millions have no health insurance. Whole sectors will not improve until at least the end of 2021, if then. These are hospitality and transportation. And Boeing lost 11 billion in the last quarter.

      Expecting a miracle with $600 stimulus is a bit disingenuous. People still have to eat and need shelter. Unemployment insurance applications are historically high again.

      Vaccine roll out is dismal here and in the rest of the world. It will ramp up eventually, but EU is calling in drug executive to find out why the promised amounts are not coming in.

      And world vaccination is critical to economic recovery. Supply lines, foreign investments, etc., won’t be reliable until the third world is included.

      Liked by 3 people

      1. “Millions of people have huge debt problems with respect to mortgages and leases.“ Yes.

        And it is going to get worse before it gets better. My major concern is that there won’t be, as was the case in the prior packages, effective targeting to those most in need. They need to get that right to get the most bang for OUR bucks…

        Liked by 2 people

    2. “(1) Get the vaccine rollout right and (2) that is all the stimulus the economy needs.”

      1. Well, for sure it is a Sine Qua Non of recovery.
      2. Based on what beyond wishful thinking?

      The economy has not been this sick since 1946. Rent crisis, mortgage crisis, jobs gone forever, busines closures, retail stores collapse, broken state and local finances. All these combined and hitting at the time do not bode well for magical thinking. IMHO.

      One thing that maybe we can agree on – The individual stimulus checks need to be targeted better on those most seriously hurt.

      Liked by 2 people

    3. “Get the vaccine rollout right and that is all the stimulus the economy needs.”

      In the long term, absolutely. But it is a long road ahead and in the shorter term, more stimulus is needed for targeted areas, including small businesses and those stuck on unemployment.

      I am all for targeting relief to those who need it. My wife and I do not. My daughter and her family should be fine. My mother-in-law, who passed away does not need it (However, she did get the latest $600 deposited into her checking account and we are waiting for it to be pulled back, as it should).

      But there are quite a few people in and out of our circles who could use the assistance. Not to mention my boss who could use the PPP after being down around 40% in sales last year.

      Getting the vaccine right is paramount. I don’t think anyone here would argue that point. And strides APPEAR to be being made in that direction, both nationally and here in VA. But to say that is all the economy needs right now would be inaccurate. – IMO.

      Liked by 2 people

  3. Hey John, you’re more up on this stuff than I ever want to be, so can tell me about Marjorie Taylor Greene and how Jewish space lasers started the California fires?

    Liked by 1 person

          1. RE: “Shockingly, I couldn’t find the Wikipedia link on Jewish Space Lasers…”

            Perhaps NN will write one when he finishes his research.

            Like

    1. …”how Jewish space lasers started the California fires”

      Did some checking, being Jewish and all, and not having heard anything about our space laser program.

      Found out the technical term for these lasers is “lightning”. Also rainbows are NOT gay. They are Hawaiian.

      Liked by 3 people

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