Chronic. Faced with so much devotion in Europe, we will be careful not to criticize President Joe Biden’s spending program – generalizing free nursery classes, repairing the country’s dilapidated infrastructure, making the rich pay a little more, who can be against? On the other hand, let us wonder about the financial dead ends of Joe Biden who throws jerry cans of gasoline on a booming economy.
It grew 6.4% in the first quarter on an annual basis, which does not prevent Joe Biden from sending checks to all of America. As a result, the total income of Americans rose 11.2% in the first quarter of 2021 compared to the 2020 average – unprecedented, due to social transfers which now represent more than a quarter of Americans’ income (27.6 % to be precise). To justify his transformative policy, Joe Biden had to invent a myth, that of an America ravaged – by the Covid -, as Franklin Delano Roosevevelt had found it ravaged during the Great Depression. This is incorrect. Mr. Biden confuses 2020 and 2021.
“The inevitable postpandemic boom”
As summarized in an editorial in Wall Street Journal (April 27), “The excuse of the White House arguing that it inherited a mess due to Covid is absurd. Vaccine production was pre-planned. The same goes for the economy, which has been growing since last July ”, writes the daily business, which notes: “The inevitable post-pandemic boom has arrived. The same would have happened if Mr. Trump had won ”, growl Wall Street Journal.
Americans happily cash Biden checks, but tick: is this money from the sky really useful, while their wage income (produced by economic activity) was stable in 2019 and 2020 despite the Covid, and has increased by 4% at the start of the year? Cautious, they set aside the equivalent of two-thirds of the social transfers they receive, confusedly understanding that something is wrong on the financial planet. Thus, their savings rate, which was 7.5% in 2019, soared to 16.3% in 2020 and reached the extravagant level of 21% at the start of 2021.
The numbers are staggering. Joe Biden’s three plans total $ 5.9 trillion, more than a quarter of U.S. GDP
The numbers are staggering. Joe Biden’s three plans (anti-Covid, infrastructure, child welfare) reach a total of $ 5.9 trillion, or more than a quarter of US gross domestic product (GDP), to which is added the $ 900 billion voted end of December during the interregnum. Admittedly, all this is not entirely voted, the plans of infrastructures and assistance to the children will be spread over at least two mandates, but the American public finances are already in a situation which defies understanding.
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