#WR:
How does the math of Joe Biden works? An @WSJ opinion column by
Glenn Hubbard titled “The Biden Budget’s Arithmetic Problem” says that “the
taxing the rich will not come close to funding the new social spending the
White House is proposing”. New public debts!
Glenn
Hubbard wrote "Many economists, including Lawrence Summers, have
highlighted the risks of the budget’s fiscal profligacy, namely inflation. But
going deeper, the budget creates structural fiscal risks by crowding out future
spending on things unrelated to the Biden administration’s social agenda. It
limits government flexibility to address future pressing needs without much
larger tax increases than the budget proposes. And the plan’s focus on basic
income rather than work is a step in the wrong direction. These risks can be
addressed—and in a progressive manner—but this budget needs to return to the
starting line."
In
the end, social spending will make America as a country poorer because the math
of social spending does not close.
SOURCES:
The Wall Street Journal
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