October 15 , 2020
In less than three weeks, Americans are voting in the most consequential election in modern times. Our nation is at a crossroads. The choice is between Donald Trump, who believes in the greatness of America and free-market capitalism vs. Joe Biden, who believes the U.S. is a systemically racist unjust country necessitating the enactment of innumerable government policies and regulations.
Biden has made clear that he has aligned himself with those on the far-left. As such, his entire platform is filtered through the objective of achieving racial, economic, and social justice.
One of the most important issues to most Americans is the state of the economy. The difference between how President Trump and Joe Biden and his running mate Kamala Harris will lead our economy could not be starker.
Joe Biden’s Economy
Biden’s priority is not economic growth, but equality. He agrees with the belief held by many on the left that the U.S. economy is a zero-sum game. Earned wealth by one leaves less wealth for others.
Like his fellow Democrats, Biden believes that any differences in outcome between races and genders are a result of discrimination because the U.S. is a systemically unjust racist country. When recently asked if he believed that there is systemic racism in law enforcement by CBS reporter Norah O’Donnell Biden responded:
“Absolutely, but it’s not just in law enforcement, it’s across the board. It’s in housing, it’s in education, and it’s in everything we do. It’s real. It’s genuine. It’s serious.”
Perhaps this explains why Biden refuses to denounce ANTIFA- the anarchists who have destroyed American monuments, desecrated the American flag, committed acts of violence against law enforcement, and other acts of violence and destruction, all in the name of social justice. Biden may not agree with the violence committed by ANTIFA, but his words and proposed policies indicate he agrees with the sentiment behind their actions.
According to the Biden-Sanders’ Unity Agreement, which Biden falsely claimed during the presidential debate did not exist:
“Racial wealth gaps are rooted in longstanding discrimination and unjust policies that continue to depress the economic and social prosperity of people of color.”
Since 1977 the Federal Reserve has had only two mandates: promote stable prices and maximize employment. A Biden presidency will add a third mandate- racial equity. Like his fellow Democrats, Biden believes that government action is the answer to all perceived inequities.
Biden is a proponent of legislation introduced by Senator Elizabeth Warren, the “Federal Reserve & Economic Equity Act”. This legislation will require the Fed to base its actions on remedying employment and wage gaps between ethnic and gender groups, rather than on economic soundness for the good of the country as a whole.
The Fed would be required to report on any racial, ethnic, gender gaps in income and wealth and to come up with a plan to reduce these gaps. This legislation will not only politicize the Fed, it will prioritize equality over the growth of the economy.
Undoubtedly, the over-overarching goal of a Biden/Harris administration will be to increase the size and scope of the government to mitigate differences in economic outcomes, with little regard for economic growth.
How else to explain why amid an economic recovery, Biden would implement a myriad of new taxes, as well as repeal many of the Trump tax cuts, which helped ignite the economy after years of stagnation.
According to the non-partisan Tax Foundation, Biden’s tax plan would depress the economy- GDP will fall by 1.47%, the economy will lose 517,888 jobs, and after-tax income will decline across all income groups.
Moreover, the analysis by the Tax Foundation does not take into account the many policy changes, (such as $15 minimum wage, increased low-skilled immigration, carbon-free electricity by 2035, etc) and the immense regulatory burden a Biden administration would levy on the job creators. These changes would no doubt deleteriously affect the recovering U.S. economy.
Biden is proposing new taxes totaling between $3 and $4 trillion. Repeating the liberal fallacy- the rich do not pay their fair share of taxes, Biden claims that he will only increase taxes on those earning more than $400,000. (Never mind that the top 10 percent of income earners in the U.S. pay 70% of all of the federal income tax.)
However, Biden is proposing $7.4 trillion, (a conservative estimate) in new spending. If Biden is successful in enacting the progressive policies enumerated in his platform, he will have to tax those at lower income levels.
President Trump’s Economy
By all accounts, the economy under President Trump pre-Covid was on fire, beating all expectations. The Congressional Budget Office predicted that from 2017-2020 real gross domestic product would grow by only 1.9% a year, and labor force participation by .07%.
Reality- From 2017-2019, GDP grew 40% more than predicted, labor force participation 50% greater, and wages increased across all income levels.
During the same period, household incomes increased to their highest level, in inflation-adjusted terms, in U.S. history. From 2018-2019 median income grew by 6.8%- the largest one-year increase ever recorded.
Biden, and those on the left, claim that Trump’s policies have only benefitted the “rich”. This is a lie. No- Biden vs. Trump is not a “campaign between Scanton and Park Avenue” as claimed by Biden.
According to the Federal Reserve Survey of Consumer Finances, between 2016 -2019, real median income increased the greatest both for Americans without a high school diploma and with only a high school education.
Moreover, the poverty rate fell to a record low in 2019- the greatest reduction in poverty in over 50 years. For black Americans, the poverty rate fell below 20% for the first time in recorded history. Black Americans and Hispanic Americans also saw record-high income gains in 2019.
Before the global pandemic, U.S. unemployment was at its lowest level in 50 years. For both Black and Hispanic Americans, the unemployment rate was at historic lows.
When President Trump claims that he presided over the greatest U.S. economy pre-Covid, this is not hyperbole.
Undoubtedly, the strong economy before the shutdown explains why the U.S. has seen the smallest economic contraction than any other Western nation. Further, the economy has already recovered more than 1/2 of the jobs lost during the unprecedented lockdown.
For context, it took the Obama-Biden administration 29 months to recover a similar percentage of jobs lost from the 2008 recession. Reminder -President Obama and Vice President Biden presided over the worst recovery from a recession since World war 2.
Bottom Line
In 2017 the Trump administration enacted historic tax reform legislation, lowering the tax burden for all. In 2017 Trump also signed an executive order requiring agencies to revoke two regulations for every new rule issued. This combination of lowered taxes and regulatory relief unshackled the stagnant economy inherited from the Obama-Biden administration.
Biden and those on the left are lying when they claim that the Trump economy only benefited high income earners. Although all income earners saw economic benefits, incomes of the lowest earners, saw the greatest percent increase.
A Biden-Harris administration will prioritize equal outcomes over economic growth, depressing the economy for all. The combination of massive tax increases, onerous regulations, and social justice policy changes proposed by Biden and Harris are antithetical to economic growth.
A recent Gallup poll found that an overwhelming majority of Americans (56%) believe that they are better off today than they were four years ago. Incredibly, despite a global pandemic and an unprecedented government-induced economic contraction, most Americans feel they are doing better in Trump’s post-Covid economy, than in one of the best years of Obama-Biden’s economy.
For every American who prefers actual economic progress over the pretense of solving economic injustice, choosing between Trump and Biden could not be easier.
