Bidenomics is short for President Joe Biden’s economic policies. It focuses on making public investments in the U.S., supporting workers to develop the middle class, and fostering competition to reduce costs and assist small businesses—all aimed at growing the U.S. economy.
It is a futile attempt to duplicate the failed economic theories of Lord John Maynard Keynes, a British economist who developed the Keynesian apotheosis. Keynesian economics argues that demand drives supply. To create jobs and boost consumer buying power during a recession.
Keynes said that governments should increase spending, even if it means going into debt. He famously stated that there is no problem with a national debt because “we owe it to ourselves.” That may have been true in the 1930s, but today many of those securities are being held by other countries such as China and Saudia Arabia. Those who subscribe to that policy are responsible for our frightening national debt that’s now $34 trillion.
Bidenomics has been an abysmal failure. Biden points to the stock market to prove the success of Bidenomics. The stock market is only one of a myriad of indicators of economic health. During Biden’s tenure, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite have all risen, but these indexes were rising prior to his presidency.
I believe the growth in these three indexes came mainly to the U.S. economy continuing to recover after the COVID-19 pandemic, the rise of artificial intelligence, and investors hoping for interest rate cuts from the Federal Reserve. These factors had nothing to do with Biden’s economic policies.
What did Biden do during this period of rising markets? He spent wildly and wastefully. His “Inflation Reduction Act,” is a perfect example of Biden’s excessive and profligate spending. This bill calls for the spending of hundreds of billions of dollars, and some evaluators estimate over $1 trillion, to support the climate change hoax. It has done little to nothing to improve the lives of average Americans.
This and other similar extravagant spending bills by Biden have pumped trillions of dollars into the U.S. economy. This spending has given the U.S. economy a misleading, largely stock market-based, short-term surge to bolster Biden’s reelection bid. Contrary to the belief of many, this spending has resulted in little, if any, long-term benefit. The primary result of all of this spending has been high levels of inflation. The Consumer Price Index (CPI) was at 1.4% when Biden took office. During Biden’s term, the CPI has risen to as high as 9.1%. The aggregate impact of inflation in the U.S. since Biden’s inauguration as measured by the CPI is almost 20%. This is not a positive achievement.
High inflation has forced many Americans to borrow to make ends meet. Credit card borrowing is often an early sign of trouble in the economy. The total credit card balance for Americans has gone from $770 billion in the first quarter of 2021, when Biden entered office, to $1.13 trillion in the fourth quarter of 2023, which is the highest balance since the New York Fed began collecting such data. Equally worrisome is that during this same period, credit card delinquency rates have risen considerably.
Biden touts that the creation of jobs under his watch was due to Bidenomics. But take a closer look at Biden’s boast. America was past the worst of the COVID-19 pandemic prior to Biden taking office, jobs were already coming back. Many of the jobs that Biden takes credit for creating were people simply coming back to work as the country came out of the COVID-19 pandemic under the policies of the Trump administration.
Biden brags about employment numbers reported over the past several years, but these figures are misleading. Many of the jobs reported are part-time. While the U.S. Bureau of Labor Statistics in its monthly news release, The Employment Situation—April 2024, does not specify the number of illegal aliens employed, it acknowledges that it is “likely” that such individuals are included in their reported employment figures, which show that a large number of jobs are filled by illegal immigrants.
Based on the Bureau’s data as well as other sources, it is reasonable to say that the number of illegals included in the Bureau’s statistics is significant and purposely not reported because it does not support many of the Biden administrations public positions. Moreover, in certain months, in excess of 50% of the Bureau’s reported jobs are government positions or indirectly supported by the government such as in health care and social assistance.
A healthy economy is built on the private sector and not the government. Government jobs are paid for with taxes and deficit spending. While these government supported jobs can create the short-term illusion of a healthy job market, the U.S. can’t continue like this and hope to have a strong economy. Biden and his left-leaning supporters believe government is the answer, while history has shown us that true economic health comes from a strong private sector. This is basically the historic argument between Marxism and capitalism.
By all accounts Bidenomics has been a total failure and become an Albatross around the necks of American businesses, U.S. citizens and the country in general.
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Frank
Frank Victoria is an award-winning author and screenwriter. He’s been an Amazon bestseller with his recent book,The Founders’ Plot, a political thriller for our times. He donates proceeds of his books to Tunnels to Towers and Fisher House, helping military veterans and first responders. His novella,The Ultimate Bet is available on his website and Amazon. Check out his new website:Frank M. Victoria
©2024 Frank Victoria
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