• Tag Archives Biden
  • Biden’s $2 Trillion Infrastructure Plan Is Loaded With Corporate Welfare

    President Biden has just unveiled a new $2.3 trillion “infrastructure” plan, but a shockingly large portion of this bill is actually unrelated to infrastructure.

    The plan includes massive subsidies for corporations as well as state and local governments, and comes right after the administration’s proposed increase in the corporate tax rate, which would raise the rate from 21 percent to 28 percent.

    There’s $300 billion for manufacturing, $100 billion for electric utilities, $100 billion for broadband, $174 billion for electric vehicles, and a whole lot more. A significant portion of this spending is directed at subsidizing big corporations.

    What the plan overlooks is that corporations are already investing heavily in the industries they aim to subsidize. For example, companies like Tesla and Volkswagen have invested billions into developing electric automobiles and charging infrastructure. Biden’s plan would aim to influence consumer spending decisions through the creation of further incentives for such vehicles. In other words, these companies would see their profits boosted as a result of artificially increased demand. The same goes for Verizon and T-Mobile that have invested in broadband, and Mitsubishi and Siemens that have invested in wind energy.

    Subsidizing multi-billion dollar corporations and pumping up their profits is corporate welfare, not an infrastructure plan. The private sector built hundreds of thousands of gas stations across the country, and if there is demand for it, they will do the same with charging stations for EVs. A federal takeover of business investment decisions in this manner will inevitably have repercussions.

    The Biden administration has included $100 billion to “decarbonize” the US electric grid, essentially eliminating coal and natural gas, alongside $213 billion for affordable housing and $400 billion to bolster home health-care. Despite President Biden’s push for bipartisanship, partisan political spending runs through his plan.

    This plan comes on the heels of Biden’s proposed corporate tax hikes.

    The current administration is betting that damage caused by jacking up taxes will be outweighed by the massive amount of federal spending in this proposal. As the president of the Tax Foundation, Scott A. Hodge put it, “Based on CBO’s (Congressional Budget Office) assessment of the economic and budgetary effects of federal investment, there is no reason to believe that the economy will be better off with such a trade.”

    The CBO estimates that $2 trillion in federal spending will yield about $1.3 trillion in actual investment. Since government investment only results in half the returns of private investment, we would be much better off if the $2 trillion in corporate tax increases that Biden needs to fund this plan were left in the hands of the private sector.

    This plan would be a massive circular flow of revenue with increased corporate taxes funding subsidies for large companies, ultimately decreasing investment and long term capital formation. As federal spending increases to unprecedented levels, state and local governments become nothing more than the administrators of a giant national government.

    Bureaucracies are notoriously and inherently inefficient, the economist Ludwig von Mises has pointed out.

    “It is a widespread illusion that the effi­ciency of government bureaus could be improved by management engineers and their methods of scientific management. . . . What they call deficiencies and faults of the management of administrative agencies are necessary properties. A bureau is not a profit-seeking enterprise; it cannot make use of any economic calculation. . . . It is out of the question to improve its management by reshaping it ac­cording to the pattern of private business.”

    Expanding bureaucracy will only exacerbate these effects. The expenses and delays involved in collecting trillions of dollars in additional corporate taxes, running them through Washington and eventually using them to finance countless programs only serve as further discouragement against pursuing such a plan.

    Overall, a thorough analysis of this proposal reveals that it would ultimately do more harm than good. In addition to the high levels of political spending and unnecessary intervention in business investment decisions, this plan would be a burden on the economy, reducing investment, growth, and prosperity over the long run.


    Aadi Golchha

    Aadi Golchha is the author of “The Socialist Trap: How the Leftist Utopia Will Destroy America” and an independent political analyst.

    This article was originally published on FEE.org. Read the original article.


  • Biden Administration Argues for Warrantless Home Entry and Gun Seizures Before the Supreme Court a Year After Breonna Taylor’s Death

    In a case argued before the US Supreme Court on Wednesday, the Biden Administration, along with attorneys general from nine states, submitted arguments asking the justices to uphold warrantless home entry and gun confiscation by police.

    The case stems from a domestic dispute between an elderly married couple, Edward and Kim Caniglia. After an intense argument between the two that led to Edward dramatically telling his wife to shoot him with one of his handguns, Kim left the home to spend the night in a hotel. The next day she was unable to reach her husband and became concerned.

    She reached out to police for a wellness check and an escort back to the home. But upon their arrival, police manipulated Edward into a psychiatric evaluation even though officers admitted in their incident report that he “seemed normal” and “was calm for the most part.” The police officers then lied to Mrs. Caniglia and told her Mr. Caniglia agreed to confiscation of his weapons. Even though Edwards was promptly released from the hospital, he was only able to regain his property after filing a civil rights lawsuit.

    Police in the case relied upon a narrow exception to the Fourth Amendment called “community caretaking.” This exception is a half-century old Supreme Court-created doctrine designed for cases involving impounded cars and highway safety. Essentially it was meant to give law enforcement a legal way to remove cars from the side of the interstate or clear wrecks.

    While the First Circuit US Court of Appeals acknowledged the doctrine’s reach outside the context of motor vehicles is “ill-defined,” it upheld the arguments in this case and allowed the exception to extend to private homes. In its finding the Court states that this exception is “designed to give police elbow room to take appropriate action.”

    But attorneys for Caniglia argue that extending the community caretaking exception to private homes would be an assault on the Fourth Amendment and would grant police a blank check to intrude upon the home.

    An amicus brief filed by the ACLU, the Cato Institute, and the American Conservative Union agreed with the attorneys and pointed to jurisdictions that have extended such provisions leading to warrantless invasions of homes for things like loud music or leaky pipes.

    One does not need to have a long memory to understand exactly how such permissions could go awry. For anyone who has paid attention to the news cycle over the past year, it is jarring to see a Democratic administration argue for warrantless home entry and gun seizures merely one year after Breonna Taylor’s death.

    Taylor was killed in her home by police after a no-knock entry (tied to a falsified warrant) led to cops spraying her apartment (and surrounding ones) with bullets. Taylor’s boyfriend, believing the home was being broken into by criminals during the middle of the night, fired in defense and was originally charged in the case (all charges were later dropped and he is suing the department).

    The case created a national firestorm that elevated conversations around Second Amendment rights and self-defense, no-knock warrants, Fourth Amendment protections, and the need for policing reform and accountability. If such atrocities occurred under our current laws, it is pretty scary to imagine what law enforcement might get away with should the Biden administration get its way in this case.

    Such arguments before the Supreme Court show that for many progressives their admirable instinct to restrict police power quickly goes out the window when they see an opportunity to chip away at gun rights.

    This is severely misguided. A cursory overlook of the justice system’s operations reveals that the expansion of police powers almost always impacts marginalized communities more harshly— communities the Democrats claim to stand for.

    In a 2016 speech on the senate floor, Senator Tim Scott (R, SC) spoke about his own experience with racial bias in policing as a black man in this country. “In the course of one year, I’ve been stopped seven times by law enforcement,” Scott said. “Not four, not five, not six, but seven times in one year as an elected official.”

    There is no reason to think that an extension of the community care exception would not have the same effect on communities of color.

    To cite just one study out of hundreds, the US Sentencing Commission found that when it comes to federal gun crimes, black people are more likely to be arrested, more likely to get longer sentences for similar crimes, and more likely to get sentencing enhancements. If the Supreme Court upholds the administration’s argument, it is not difficult to predict which communities will be impacted the most by this new expansion.

    Progressives are not the only ones experiencing a disconnect in principles at the moment either. Many Republicans were surprised in recent months to see police departments readily enforce unconstitutional lockdowns—carting business owners off to jail and fining law-abiding people who simply wanted to go to work. Likely, the majority on the right will be aghast at the arguments presented in this case and their clear violation of both our Second and Fourth Amendment rights. But it should not escape them who is arguing for these violations, nor who would ultimately enforce them.

    In another amicus brief filed by the public interest litigation giant, the Institute for Justice, attorneys argued “The Fourth Amendment protects our right to be secure in our property, which means the right to be free from fear that the police will enter your house without warning or authorization. A rule that allows police to burst into your home without a warrant whenever they feel they are acting as ‘community caretakers’ is a threat to everyone’s security.”

    The Breonna Taylor case should have been a turning point in our nation’s history and spurred legislation that would strengthen and uphold our essential individual rights and restrict police power. Many hoped it would be the final straw that brought an end to egregious practices like no-knock warrants. Instead, despite much public outcry and demand, we continue to see politicians on both sides of the aisle push for increased police power and an erosion of our right to be secure in our homes and our property.

    Former Congressman Justin Amash (L-MI) said protection from warrantless searches is central to the Bill of Rights.

    “The warrant requirement isn’t optional; it’s at the heart of the Fourth Amendment,” Amash told FEE. “Treating the Fourth Amendment as though it flatly permits searches and seizures that seem ‘reasonable’ in the eyes of government officials, regardless of whether a warrant has been obtained, drains it of its purpose: protecting the right of the people to be secure in their persons and property.”

    Make no mistake, this is among the most appalling attacks on our fundamental rights and way of life currently occurring. It is an attack on property rights, on our right to self-defense, and on our right to privacy, and if it is allowed there will be gross violations of individuals as a repercussion.

    It is vitally important to remember that police brutality is a direct consequence of a government that has grown too big and powerful. The more power we give to the government and its agents, the more prone it is to abuse. It’s time we address the root cause of the problem and put the government back in its place.

     Hannah Cox


    Hannah Cox

    Hannah Cox is a libertarian-conservative writer, commentator, and activist. She’s a Newsmax Insider and a Contributor to The Washington Examiner.

    This article was originally published on FEE.org. Read the original article.


  • Wharton Study Warns Biden’s Expensive ‘Stimulus’ Plan Will Hurt Economy in the Long Term

    President Biden is hitting the road and traveling across the country to pitch his $1.9 trillion COVID-19 stimulus and relief spending proposal to voters.

    The legislation includes $1,400 relief checks, a further six-month expansion of “temporary” super-generous unemployment benefits that often pay more than work, $350 billion for bailouts for state and local governments, partisan provisions like a federal $15 minimum wage, and much more. Economists interviewed by FEE warned the package was an “economically unjustified” plan that “incentivizes unemployment.”

    Yet with his road trip and ongoing lobbying efforts, Biden hopes to persuade voters and members of Congress that his stimulus proposal is necessary for long-term economic recovery. But a new Ivy League analysis suggests the opposite. 

    Scholars at the University of Pennsylvania’s Wharton School of Business analyzed the plan and found that the massive spending splurge—which costs roughly $13,260 per federal taxpayer—would only cause a “slight uptick” in economic growth in 2021. The analysts warned that this minor boost would just be “instant gratification,” and that the skyrocketing government debt caused by the blowout legislation would undermine any gains in the medium-to-long term.

    “The existence of the debt saps the rest of the economy,” Wharton analyst Efraim Berkovich said. “When the government is running budget deficits, the money that could have gone to productive investment is redirected.” 

    “Effectively, what we’re doing is taking money from [some] people and giving it to other people for consumption purposes,” he continued. “That has value for social safety nets and redistributive benefits, but longer-term, you’re taking away from the capital that we need to grow our economy in the future.”

    Biden’s costly plan would explode the national debt. This, per Wharton, would lead to a “crowding out” effect over the coming years as more loan money is taken away from productive business/private sector investments and instead consumed by government debt. 

    As a result, the analysts find that workers would see a small decline—not an increase—in their hourly wages by 2022 and a slightly larger decline in their hourly wages by 2040. In 2022, the overall number of hours worked would actually fall due to the plan. 

    So, Wharton concludes, Biden’s spending binge would actually lead to a smaller economy in 2022. How’s that for “stimulus?”

    And we must also consider the other elements of Biden’s plan that would sabotage the economic recovery, like the inclusion of a federal $15 minimum wage. This partisan provision would eliminate millions of jobs, devastate struggling small businesses, and lead to higher consumer prices.

    You might be wondering: Why would anyone support a stimulus effort that offers only small short-term gain in exchange for long-term economic detriment? It’s due to a common flaw in policy thinking that focuses on the seen benefits while ignoring the unseen costs.

    Famed economist Frédéric Bastiat discussed this fatal flaw of policymaking in his essay What Is Seen and What Is Not Seen in Political Economy.”

    “[A] law gives birth not only to an effect but to a series of effects,” Bastiat wrote. Only the first effect is foreseen by naive policymakers who fall victim to this fallacy, while the many second-order consequences remain unseen.

    “It almost always happens that when the immediate consequence is favourable, the ultimate consequences are fatal, and the converse,” he wrote. “Hence it follows that the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come—at the risk of a small present evil.”

    It’s fair to say that in this case, the president is thinking like a bad economist. (Or a good politician). 

    Biden knows that the short-term benefits of his proposal—like $1,400 checks in many peoples’ mailboxes—will be seen and felt by millions of voters who will directly credit him for it. (His name will even be on the checks). Yet the vast and diffuse costs imposed on people by the plan over time will most likely never be directly traced back to the legislation itself, instead observed only by economists and analysts who parse broad economic data and trends. 

    So, Biden’s proposed stimulus can simultaneously be an economic net-negative and a political winner. And, unfortunately, many of our politicians won’t mind the tradeoff—because the only loser in this political bargain is the average American citizen.


    Brad Polumbo

    Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Opinion Editor at the Foundation for Economic Education.

    This article was originally published on FEE.org. Read the original article.