This week, investigative journalist Mark Levin launched strong criticism of the Democratic Party and specifically the Biden administration for implementing policies that will inevitably lead to a fiscal imbalance due to massive government spending that, he asserts, can only be offset by exponential tax increases.
Democrats passed a $1.9 trillion partisan bill on Wednesday March 10, supposedly aimed at “stimulating” the economy in the wake of the effects of the CCP Virus pandemic. Paradoxically, the most stringent pandemic tightening measures that most affected the economy were imposed by Democratic governors.
It is also noteworthy that the $1.9 trillion package was criticized for including a large number of liberal economic measures that have nothing to do with solutions to offset the effects of the pandemic.
Last year, as reported by Levin, Democrats racked up $4.1 trillion in debt to keep the economy from collapsing when blue state governors stymied the economy and shut down businesses. Now, as new legislation aimed at passing hefty infrastructure spending looms, Levin is sounding the alarm and asserting that the United States faces “fiscal suicide” at the hands of the Democratic Party.
“In 18 months’ time, we have spent, or have obligated for spending, $16.5 trillion,” Levin exclaimed. “And what’s coming next? Two more trillion, we’re told, in infrastructure. And the Republicans are saying the Democrats are going to spend a tiny percent on infrastructure and load it up with yet more new entitlements, new programs, and new spending … and they pretend they’re going to pay for it. How are they going to pay for it? Massive tax increases on corporations, which means everything you buy is going to go up. Which also means, if they can’t turn a profit they’re going to fire people. Incredible.”
To confirm what Levin foreshadows, it is enough to observe what happened during the last decades in Latin American economies, which were plagued by leftist policies with promises of income redistribution, which implied an excessive public expenditure financed with taxes to the productive sectors, which finally transferred their tax costs to prices, generating an uncontrollable inflationary spiral.
The direct consequence was always the same; higher inflation, lower consumption, destruction of the productive system, rising unemployment, and a profound increase in extreme poverty.
The Biden administration is reportedly preparing a massive spending package totaling at least $3 trillion, aimed at addressing a range of policy priorities, including jobs, infrastructure, climate change, education and income inequality.
According to the New York Times, the White House would seek to split the policy action into two separate bills to make it more attractive in Congress and deter negative impact; the first proposal would likely be a major infrastructure plan funded through tax increases for corporations and the wealthiest sectors.
Meanwhile, the second proposal would focus on other priorities related to meeting the leftist agenda enacted by the Democrats, associated with student and labor market policies. Including universal pre-kindergarten, free community college tuition, expanded child care, and a national state assistance program.
Reports emerged last week that the Biden administration was planning the largest tax increase in nearly 30 years to fund its domestic policy initiatives.