The Real Biden Bill: At Least $4.6 Trillion

Source: The Wall Street Journal (free link).

WSJ’s concluding paragraph deserves emphasis:

Keep in mind that CBO this summer projected that annual deficits will already exceed $1 trillion on average through 2030, causing U.S. debt to swell by $12.8 trillion—and that’s before the infrastructure bill or this House bill. When the spending all kicks in, and the rich are all taxed out, the middle class will be hit with a huge tax increase. This is the most dishonest spending bill in American history.

Today’s money supply (M2) in the U.S. is about $20 trillion. Adding $13 trillion to that will cut the value of a dollar almost in half. Specifically, what $1.00 buys today will require $1.65 after M2 increases to $33 trillion.

This rough calculation illustrates the magnitude of the error we are in the process of making. It is certainly possible that our economy will produce $13 trillion in new goods it would not otherwise produce, but to think it probable is to practice magic.

5 thoughts on “The Real Biden Bill: At Least $4.6 Trillion

  1. Democrats cannot advance their agenda absent deception.

    Scoring a program intended to be permanent for only one year of a ten year bill is about as dishonest as you can get.

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  2. Why are you guys still falling for this?

    Democrats promise to do big, popular things that donors don’t actually want them to do. Then they make sure the funding mechanisms are stripped out of the final versions of the bills (tax increases on the most wealthy in this case). They get a bill that they can brag about for the short term. The Republicans get to act like it’s a Five Year Plan and talk about how it blows a hole in the deficit (by design). Republicans can run on opposition to a bill that is expensive and doesn’t perform as advertised; Democrats get to pretend they’re helping without upsetting corporate power, then claim it would have been perfect if not for those crazy Republicans.

    It’s the same song and dance over and over.

    Liked by 1 person

    1. RE: “Why are you guys still falling for this?”

      I think it is because too many people are too ignorant of economics. Knowing that forecasted deficit spending over the next 10 years will take a big chunk out of the purchasing power of a dollar might help, but I have my doubts.

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      1. What I’m saying is, national level Democrats have virtually identical fiscal politics as Republicans. They know they’ll get rinsed in the midterms and most of this will be undone. They don’t want to expand the social safety net anymore than you want them to.

        Inflation is happening globally, and likely has more to do with just-in-time production caused supply chain issues and a tight labor market. But Republicans have their talking points, so you’re all obsessed with that. (Like how you all suddenly don’t care about CRT in schools anymore…) The CBO never scores our war expenditures, and somehow there’s never any news hysteria about however many trillion dollars that costs us every year.

        You guys are too invested in the manufactured culture war bullshit to realize you’ve won. You have the courts. Labor was smashed a generation ago. The party that is supposed to represent labor worked harder to defeat Bernie Sanders than Donald Trump.

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        1. RE: “Inflation is happening globally, and likely has more to do with just-in-time production caused supply chain issues and a tight labor market.”

          No, inflation is by definition a monetary phenomenon.

          But that aside, I understand what you mean about the two parties having virtually identical fiscal policies: Both are quite happy to create money that expands M2. They just use different fraudulent excuses.

          Better knowledge is the only way out, through the BS.

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