It’s hard to believe what is happening in the once homeland of economic freedom, where thousands of migrants arrive to pursue the American dream. It is hard to believe how the republic seems to be turning into a one-party state through political bribes and populist measures that are nothing more than vulgar payoffs to the masses at the expense of taxpayers’ money.
Since the Democrats won the Presidency and the majority in both Houses of Congress, they have unleashed the most vulgar wave of economic populism, which rather than a government agenda, looks like a checklist of things that millennials apparently like.
How can you not want to fight inequality, climate change and fair wages? How can you leave a pandemic-ravaged society helpless? These all sound like laudable slogans when it comes to selling their proposals. The problem is that the solutions are nothing more than a crude economic design to keep a mass of voters compliant.
Pandemic relief plan or Democratic lobby?
Although supported by 70% of Americans, Biden’s stimulus plan is not much different from that of a banana republic dictator handing out money and subsidies to the populace to stay in power. Obviously, the stimulus plan is popular; who will not like getting a juicy check for $1,400 in their bank account without doing anything?
Progressive economists will justify that these checks are to stimulate consumption, so businesses, faced with increased demand, will hire more people, even though the evidence shows that the multiplier for the latter plan is practically 0.
Unfortunately, the current unemployment problem is not solved by turning money around because the problem is not one of demand but of supply. Millions of jobs disappeared completely not because Americans are consuming too little but because the malls, stores, retail centers and factories where those people worked went bankrupt.
The productive infrastructure that supported millions of American jobs was annihilated by harsh quarantines, mostly in the Democratic states, which, justifying themselves on the pretext of “saving lives,” put millions of people out of work.
After killing millions of jobs in their states, the Democrats reward themselves with a subtle change in the formula for transferring money to state governments, giving priority to the states that destroyed the most jobs and not to the size of their population.
Why should California, as the state with the highest GDP in the U.S. and the highest taxes, receive billions of dollars more than poor Mississippi? Why is New York rewarded for killing thousands of jobs and driving away hundreds of businesses by its degenerate governor’s decision?
Naturally, no one wants to see millions of people falling into poverty without their government doing anything. Aid to the unemployed and fiscal stimulus to struggling businesses are decisions that are expected from any administration. But why give away money to people who have not lost their jobs? Why give funds to states that have not decreased their revenue? The answer is easy: this plan is not a handout; it’s a kickback.
If it were about helping, the Democrats would have tried to reach some consensus with the Republicans but they decided to completely ignore them and marginalize the skeptical voices within their own party.
So democratic is the party of social-goodism that when the Senate’s chief parliamentarian made it clear to them that they could not include the minimum wage increase in the stimulus plan, their most prominent voices, such as Bernie Sanders, came out to demand that the parliamentarian’s criteria be disregarded. Brave Democrats who only call for abiding by the rules when it suits them.
Naturally, the Democrats also do not care about this stimulus plan’s cost, which amounts to 9% of the economy’s size. Their easy money piñata is financed through money printing and future debts to be paid by the rich.
The stimulus plan is just the beginning, Democrats are going for more
The stimulus plan is just the tip of the iceberg of what is to come. On the same day that the Democrats’ free money plan was approved, the Democrats passed a reform in the House of Representatives that takes all decision-making power away from business owners on how to run their businesses and gives it to the unions: the Pro Act.
With the Pro Act, companies will have to disclose whether they receive legal advice to prevent unionization in their companies, it will be possible to blackmail workers who do not want to join unions, and it gives the State the authority to intervene in the management of private businesses if the unions deem it necessary.
Although the Democrats justify their fight against free enterprise behind the imaginary of having decent jobs, they do not mind destroying thousands of jobs in the sectors they do not like, as is the case of hydrocarbons.
Despite the fact that the United States is the largest oil consumer in the world, Biden did not care to take this fact into account when blocking the Keystone XL pipeline, as if that would dissuade the American driver from filling up his car’s tank. Perhaps for the Democrats, it is preferable to keep buying oil from murderous regimes like the Saudi monarchy than from democracies like Canada. Old American traditions.
While leading his crusade against fossil fuels, Biden gives himself airs of being a new Roosevelt by promising the next New Deal, only this time it will be “green”, pledging to spend trillions of dollars on green jobs, but without specifying how fossil fuels will be replaced by renewable sources only, to reach the fantasy of an emission-free economy.
In economics, bad decisions take time to show their consequences; many times, those responsible for these bad decisions lie dead when new generations must assume the cost of their irresponsibility. The consequences of the Democrats’ economic populism will not be seen immediately, but they are injecting more and more fuel into the time bomb that will explode, and future generations will have to pay with their taxes for the higher debt and with their jobs for less competitiveness.