Joe Biden’s first and only term is coming to a close, and we’re finally learning where Bidenomics leads. The Bureau of Labor Statistics published its October report, and its last report turned out to be a tad bit off. The job numbers expected for September had to be revised down by almost 90,000 jobs. October didn’t fair any better. Isn’t it funny how those numbers are always revised down and never up?
It turns out that in October, our economy created only 12,000 jobs – and that’s not even the bad news. That increase in jobs is because of government hiring. The private sector actually lost 28,000 jobs. The net increase in jobs was for wealth consumers, rather than wealth creators.
It never required a rocket scientist to see that Bidenomics was flawed conceptually, and was certain to fail eventually. Joe and Kamala assumed that the government could stimulate the economy with targeted investments. Their plan has been to grow the economy by taking money out of it, and then giving some of it back.
That twisted logic hasn’t stopped Paul Krugman and 16 other Nobel Laureates from touting Joe Biden’s genius. Just last month, Krugman said that, “All the economic news vindicates Bidenomics.” Will he be revising that statement now, given the new “news”? Krugman’s fellow award winners are also on board with Bidenomics, signing a joint letter stating:
While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden’s economic agenda is vastly superior to Donald Trump’s. In his first four years as President, Joe Biden signed into law major investments in the U.S. economy, including in infrastructure, domestic manufacturing, and climate. Together, these investments are likely to increase productivity and economic growth while lowering long-term inflationary pressures and facilitating the clean energy transition.
What utter baloney! They are all failing to acknowledge the simple fact that government spending retards rather than stimulates the economy. These economists are either more dedicated to the propaganda than the truth, or they don’t understand the difference between wealth creation and wealth redistribution. Either way, they’ve sacrificed their credibility in a failed attempt to make big government seem economically sound.
When a blacksmith uses his ingenuity and labor to forge a dollars’ worth of steel into an ax, which he sells for 20 dollars, he has enriched himself and added 19 bucks to the GDP. When a lumberjack uses his 20-dollar ax to produce 100 dollars’ worth of lumber, he has been enriched by his ax purchase and added another 80 bucks to the GDP. The blacksmith and the lumberjack have also enabled a carpenter to create wealth with the lumber, and a shopkeeper to create wealth with the building the carpenter built. The whole community is enriched by those that make things of value – thus creating wealth without taking it from anyone.
But Bidenomics is based on wealth redistribution. Joe and Kamala insisted that we could create a vibrant economy, by making massive government investments in products which people weren’t previously buying – like windmills, solar panels, and electric cars. They promised that a new demand for things that weren’t selling would expand the economy and create jobs.
Consider the case of our hypothetical lumber camp. The camp has a market for axes and lumber, but not for white gloves. Bidenomics asserts that if we subsidize white glove purchases, a market can be created, and the economy grown.
Only the economy doesn’t work that way. For the government to give, it must first take. Before it can subsidize, it must either take the money by taxation (using the IRS to pick our pockets) or borrow the money (allowing inflation to do the looting). In our imaginary lumber camp, every dollar needed to subsidize the white glove industry, must be taken from the blacksmiths, lumberjacks, carpenters, and shopkeepers. All of which are left with fewer resources with which to create wealth and enrich the community.
When the government attempts to break the laws of economics – creating industries by government fiat, rather than consumer demand – it is taking from the most productive (those with taxable income), and giving to the least productive (those on the government dole), in an attempt to maximize productivity. The logic that this can grow the economy is flawed, regardless of what the award-winning economists claim. As the October jobs report shows, Bidenomics sacrificed 28,000 wealth creators, to subsidize the employment of 12,000 wealth redistributors.
What has 4 years of Bidenomics investment actually stimulated?
- 36 trillion dollars of debt,
- Chronic inflation,
- Stagnant wages,
- Dwindling personal savings, and
- A new industry which lives on looting rather than production.
The Biden/Harris administration has left Donald Trump with a colossal mess to clean up.
This article previously appeared in The American Spectator.
Author Bio: John Green is a retired engineer and political refugee from Minnesota, now residing in Idaho. He spent his career designing complex defense systems, developing high performance organizations, and doing corporate strategic planning. He is a contributor to American Thinker, The American Spectator, and the American Free News Network. He can be reached at greenjeg@gmail.com.
If you enjoyed this article, then please REPOST or SHARE with others; encourage them to follow AFNN. If you’d like to become a citizen contributor for AFNN, contact us at managingeditor@afnn.us Help keep us ad-free by donating here.
Substack: American Free News Network Substack
Truth Social: @AFNN_USA
Facebook: https://m.facebook.com/afnnusa
Telegram: https://t.me/joinchat/2_-GAzcXmIRjODNh
Twitter: https://twitter.com/AfnnUsa
GETTR: https://gettr.com/user/AFNN_USA
CloutHub: @AFNN_USA