Dr. Reich is reliably colorblind when it comes to economics, toeing the Leftist line on class envy and bigger government. In actual fact, he's simply doing his part to push The Narrative, which the media are also doing.
Ironically, hot on the heels of Dr. Reich's fawning over Bidenomics is this report. Fitch downgraded the US's credit rating. Hmm.
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Friends,
Until recently, I assumed that Joe Biden would get a second term despite worries about his age because most Americans find Trump so loathsome.
But I’ve underestimated Bidenomics. It’s turning out to be the most successful set of economic policies the United States has witnessed in a half-century. (An astonishing claim, given that "The Agenda" is to overthrow the system, not make it work better.
Friends,
Until recently, I assumed that Joe Biden would get a second term despite worries about his age because most Americans find Trump so loathsome.
But I’ve underestimated Bidenomics. It’s turning out to be the most successful set of economic policies the United States has witnessed in a half-century. (An astonishing claim, given that "The Agenda" is to overthrow the system, not make it work better.
Also notice the tacit approval of the Reagan economy, which was a half-century ago.)
It will not only give Joe another term but will also give Democrats control over both houses of Congress. It may even put the nation on the path to widely shared prosperity for a generation. (Until another COVID becomes necessary...)
Consider what’s been happening to the economy. New economic data last week showed inflation cooled to 3 percent in June, down from over 9 percent last year, and close to the Fed’s goal of 2 percent. (???? Dr. Reich is in favor of the Fed's actions? In another article he wrote,
In this link tThey also note:
It will not only give Joe another term but will also give Democrats control over both houses of Congress. It may even put the nation on the path to widely shared prosperity for a generation. (Until another COVID becomes necessary...)
Consider what’s been happening to the economy. New economic data last week showed inflation cooled to 3 percent in June, down from over 9 percent last year, and close to the Fed’s goal of 2 percent. (???? Dr. Reich is in favor of the Fed's actions? In another article he wrote,
The biggest danger is the Federal Reserve will keep raising interest rates (I fear the Fed will raise rates by another full point when it meets July 25-26). This will cause rents to rise even faster (see above), and slow the economy to the point where a recession becomes likely.
This is what it is like to be a Leftist. "The Narrative" [agitprop] is to always serve "The Agenda." It doesn't have to be consistent, accurate, truthful, or non-contradictory. You can say or do anything as a Leftist as long as you don't violate "The Agenda."
This is why charges of hypocrisy never stick. This is why leftists are never held to account for lying. It is useless to apply standards to leftists because no one on the Left cares. They can do whatever they want with impunity. Because "The Agenda.")
And as inflation has subsided, real wages — that is, what paychecks will buy — have finally risen. (Categorically false. Buying power has not risen if inflation is at 3%, it has DECREASED by 3%. Granting of course that the claim of 3% inflation is correct, which it isn't.
And as inflation has subsided, real wages — that is, what paychecks will buy — have finally risen. (Categorically false. Buying power has not risen if inflation is at 3%, it has DECREASED by 3%. Granting of course that the claim of 3% inflation is correct, which it isn't.
Here's a chart of historic inflation:
- U.S. inflation rate for 2021 was 4.70%, a 3.46% increase from 2020.
- U.S. inflation rate for 2020 was 1.23%, a 0.58% decline from 2019.
- U.S. inflation rate for 2019 was 1.81%, a 0.63% decline from 2018.
- U.S. inflation rate for 2018 was 2.44%, a 0.31% increase from 2017.
Notice that "Bidenomics" has a long way to go to match Trump's performance.)
Meanwhile, economic growth has accelerated. (Sigh. Leftists shut down the country for a solid 2 years due to COVID. Therefore, any economic growth that starts from zero looks remarkable, but it is beyond the pale to be the cause of the problem and simultaneously take credit for recovering from it.)
Meanwhile, economic growth has accelerated. (Sigh. Leftists shut down the country for a solid 2 years due to COVID. Therefore, any economic growth that starts from zero looks remarkable, but it is beyond the pale to be the cause of the problem and simultaneously take credit for recovering from it.)
Consumer spending is solid. Consumers expect the economy to continue to do well.
Inflation is coming down without a crash landing, in large part because the Fed’s rate increases — designed to slow the economy, stop wage growth, and cause higher unemployment — (Again Dr. Reich touts the formerly hated Fed.)
Inflation is coming down without a crash landing, in large part because the Fed’s rate increases — designed to slow the economy, stop wage growth, and cause higher unemployment — (Again Dr. Reich touts the formerly hated Fed.)
are being offset by Bidenomics’ massive public investments in infrastructure, semiconductors, wind and solar energy, and manufacturing. (Again, the economy is coming back from zero state, imposed by leftist governors and mayors all over the country. We nearly lost the country as a result, but commerce clawed back from the brink. And there were many casualties, mostly small mom-and pop businesses. Dr. Reich doesn't mention them.
So government deficit spending contributed nothing to the economy. Rather, this is a great burden, a drag on the economy. We would assert that things would have recovered much more quickly and be much better today without the spending. But of course, none of it would have been necessary if the Democrats hadn't overreacted to COVID.)
This isn’t all. The Biden administration has added three other critical ingredients: the threat (and, in some cases, reality) of tough antitrust enforcement, a pro-labor National Labor Relations Board, and strict limits on Chinese imports. (Sigh. This is why it is so much easier to be leftist: You can say anything you want. Dr. Reich praises Biden for retaining a Trump policy. Remember, Trump was roundly criticized by the Left for imposing severe tariffs on Chinese products? Remember?)
Taken together, these policies are beginning to alter the structure of the American economy in favor of the bottom 90 percent.
Let me stop here for a moment to point out that there are two separate goals of economic policy. (Dr. Reich is trying to make it seem that there is only one kind of economic policy. But neither of these "goals" are features of generic "economic policy." HIs "economic policy" is interventionist, top-down control, a Marist tendency, so these goals are government control initiatives.)
The first goal is avoiding inflation or recession — that is, evening out the business cycle (often called achieving “price stability”). (The "business cycle" has nothing to do with inflation. Inflation is caused by government monetary policy. Increasing the money supply devalues the dollar. When government prints money it causes inflation. The "business cycle" is a result of inflation which is a result of government action.)
In recent decades, the Fed has been in charge of this. It’s engaged in a “Perils of Pauline” ride — seeking to offset dramatic economic plunges (stemming from the financial crisis of 2008 to 2009 and then the pandemic of 2020) (Both things were caused by government policy.)
This isn’t all. The Biden administration has added three other critical ingredients: the threat (and, in some cases, reality) of tough antitrust enforcement, a pro-labor National Labor Relations Board, and strict limits on Chinese imports. (Sigh. This is why it is so much easier to be leftist: You can say anything you want. Dr. Reich praises Biden for retaining a Trump policy. Remember, Trump was roundly criticized by the Left for imposing severe tariffs on Chinese products? Remember?)
Taken together, these policies are beginning to alter the structure of the American economy in favor of the bottom 90 percent.
Let me stop here for a moment to point out that there are two separate goals of economic policy. (Dr. Reich is trying to make it seem that there is only one kind of economic policy. But neither of these "goals" are features of generic "economic policy." HIs "economic policy" is interventionist, top-down control, a Marist tendency, so these goals are government control initiatives.)
The first goal is avoiding inflation or recession — that is, evening out the business cycle (often called achieving “price stability”). (The "business cycle" has nothing to do with inflation. Inflation is caused by government monetary policy. Increasing the money supply devalues the dollar. When government prints money it causes inflation. The "business cycle" is a result of inflation which is a result of government action.)
In recent decades, the Fed has been in charge of this. It’s engaged in a “Perils of Pauline” ride — seeking to offset dramatic economic plunges (stemming from the financial crisis of 2008 to 2009 and then the pandemic of 2020) (Both things were caused by government policy.)
with zero and even minus-zero interest rates, while trying to offset an equally dramatic post-pandemic surge with the fastest and highest interest rate increases since the early 1980s.
The second goal is gaining more jobs at higher wages. (Government can only suppress job creation. It creates no jobs, unless it scales back its interventions into the economy or reduces taxes or regulations. Otherwise, the only thing is can do is make it harder for businesses to hire.)
This requires altering the structure of the economy so the poor and working middle class get a larger share of the gains and the ownership class doesn’t continue to run away with the lion’s share. (Written like a true Marxist. It's all right here in a single sentence. "The Agenda" is to overthrow the system by stirring up the proletariat with agitprop. The proletariat needs to rise up and take down the bourgeois.
The second goal is gaining more jobs at higher wages. (Government can only suppress job creation. It creates no jobs, unless it scales back its interventions into the economy or reduces taxes or regulations. Otherwise, the only thing is can do is make it harder for businesses to hire.)
This requires altering the structure of the economy so the poor and working middle class get a larger share of the gains and the ownership class doesn’t continue to run away with the lion’s share. (Written like a true Marxist. It's all right here in a single sentence. "The Agenda" is to overthrow the system by stirring up the proletariat with agitprop. The proletariat needs to rise up and take down the bourgeois.
Marxism is simply the fomenting of envy.)
The distribution of income and wealth doesn’t have to be a zero-sum game in which the rich do better only at the expense of everyone else, and everyone else can do better only if wealth at the top is constrained. (Income is distributed, it is earned.
The distribution of income and wealth doesn’t have to be a zero-sum game in which the rich do better only at the expense of everyone else, and everyone else can do better only if wealth at the top is constrained. (Income is distributed, it is earned.
The rich do not do better at the expense of everyone else.
Constraining wealth has nothing to do with others doing better.)
But power — the power to alter the rules of the game and organize the market to the advantage of those possessing it — is a zero-sum game. It’s exercised only to the extent that others can not. And in modern America, as we all know, great wealth turns into great power. (Again, notice how this perfectly fits the Marxist "Narrative."
But power — the power to alter the rules of the game and organize the market to the advantage of those possessing it — is a zero-sum game. It’s exercised only to the extent that others can not. And in modern America, as we all know, great wealth turns into great power. (Again, notice how this perfectly fits the Marxist "Narrative."
Our present government has never had more power, a direct result of Leftist political initiatives over the last 80-90 years. The structure of the economy Dr. Reich complained about has been created by Leftists.)
So, getting the poor and working middle class a larger share of the gains requires restructuring the economy in favor of the vast majority that has been losing ground for 40 years and against the monied interests that have been gaining it. (He just keeps going on and on. He wants even more of what is causing our problems. He wants more restructuring which will only result in more debt, more inflation, more government oppression, and ultimately, the complete failure of the American system of government.
So, getting the poor and working middle class a larger share of the gains requires restructuring the economy in favor of the vast majority that has been losing ground for 40 years and against the monied interests that have been gaining it. (He just keeps going on and on. He wants even more of what is causing our problems. He wants more restructuring which will only result in more debt, more inflation, more government oppression, and ultimately, the complete failure of the American system of government.
This is what these Marxists want. "Restructuring" is simply a euphemism for "overthrow.")
This restructuring has been difficult to achieve, for the simple reason that the monied interests don’t want it. (We're not monied interests, and we don't want it. Perhaps half the country doesn't want it. We've seen what your policies do, Dr. Reich, and we're not interested in more devastation due to your "restructuring.")
In Republican circles, the monied interests have preached the snake oil of supply-side economics, which legitimized giant tax cuts going mostly to the rich and large corporations. (Once cannot cut the taxes of those who do not pay them.)
Those tax cuts — under Reagan, George W. Bush, and Trump — exploded the federal debt, (??? Dr. Reich is now concerned about the "exploded" national debt. but he has written elsewhere that the national debt is a good thing:
In Democratic circles, the monied interests have used neoliberalism — which has called for deregulation, privatization, free trade, and the domination of finance over the economy. This orthodoxy pervaded the Clinton and Obama administrations. (I won’t bore you with my war stories, but trust me.)
The result was similar to the result of supply-side economics: Wealth surged to the top, but average working people remained stuck in the mud. (Dr. Reich doesn't seem to realize that it is the increasing degree of leftist economics that are causing our problems.)
In contrast to both trickle-down economics and neoliberalism, the Biden administration is focused on altering the structure of the economy.
Over the past year, manufacturing construction in high-tech electronics, which the administration has subsidized through CHIPS and the Inflation Reduction Act, has quadrupled.
Tens of billions in infrastructure spending has been funneled to the states for road, water system, and internet upgrades.
More clean-energy manufacturing facilities have been announced in the last year than in the previous seven combined. (The Leftist pattern, more taxes, more spending. Let's look at the history:
Does the reader see any reduction in the National debt or crises solved or averted by deficit spending?
Biden understands that these investments must translate into high-paying jobs, which often require unions. “When I think climate, I think jobs … union workers are the best workers in the world,” he said in a recent speech on Bidenomics.
The monied interests don’t want unions, of course. The narrow congressional majority that got these bills passed rolled back some of the labor conditions that were originally on the tax credits and grants.
Moreover, much of the funding is pouring into so-called “right-to-work states” that make it exceedingly difficulty to unionize.
But a buoyant economy strengthens the hand of workers, making it easier to unionize — which helps explain the ubiquitous labor action this summer.
Voters may not yet understand Bidenomics, but it’s probably not necessary that they do in order for Biden and the Democrats to benefit.
If Bidenomics continues to alter the structure of the economy in ways that help the vast majority, voters will give Biden another term and reward Democrats with both houses of Congress.
And if Bidenomics is successful, it will make the American economy both stronger and fairer in years to come.
I’m betting on it. What do you think?
This restructuring has been difficult to achieve, for the simple reason that the monied interests don’t want it. (We're not monied interests, and we don't want it. Perhaps half the country doesn't want it. We've seen what your policies do, Dr. Reich, and we're not interested in more devastation due to your "restructuring.")
In Republican circles, the monied interests have preached the snake oil of supply-side economics, which legitimized giant tax cuts going mostly to the rich and large corporations. (Once cannot cut the taxes of those who do not pay them.)
Those tax cuts — under Reagan, George W. Bush, and Trump — exploded the federal debt, (??? Dr. Reich is now concerned about the "exploded" national debt. but he has written elsewhere that the national debt is a good thing:
A big chunk of the projected debt will finance investments in future growth: infrastructure such as roads, bridges, pipes, and the energy grid. Critical industries such as semiconductors. And the necessary shift from fossil to renewable energies. Without these investments, the U.S. economy would grow far more slowly and the debt would be even larger in proportion to it.
So the debt is good. Deficit spending is good. Unless today's agitprop requires finding something to blame on Republicans. But tomorrow it will be back to them touting deficit spending.
Ten years ago and 20 years ago the Left was saying the same thing, that deficit spending funds future growth. Well, we're in that future now. Did yesterday's deficit spending have any discernable effect on today's economic situation? Can Dr. Reich point to any aspect of today's economy and tell us it's better because we deficit spent a decade or two decades ago? Indeed, how would we measure that, since we don't have a control group? For all we know, today's economic situation would have been better without deficit spending.
This "modern economic theory" in action.
Lastly, tax cuts categorically do not increase the federal debt. This has never happened, for it isn't possible for it to happen. Further, tax increases have never reduced the federal debt. Never once.
A deficit is caused by spending more than the revenue received. Spending always is the problem. Always.
Reagan's tax cuts doubled revenue to the treasury over the time of his presidency. Unfortunately, congress spent all of that and then some. The problem is always spending.)
fueled giant profits in the biggest firms and financial institutions, and stoked a surge in billionaire wealth but did literally nothing for average working people. (America has been under the thumb of leftist government since FDR, with the exception of a few bright shining examples like Reagan, Gingrich, and Trump. Their policies released unprecedented growth and prosperity. The Left does everything in its power to undo these good economic performances. If nothing was done for the working people, it is because the Left wants it that way.)
In Democratic circles, the monied interests have used neoliberalism — which has called for deregulation, privatization, free trade, and the domination of finance over the economy. This orthodoxy pervaded the Clinton and Obama administrations. (I won’t bore you with my war stories, but trust me.)
The result was similar to the result of supply-side economics: Wealth surged to the top, but average working people remained stuck in the mud. (Dr. Reich doesn't seem to realize that it is the increasing degree of leftist economics that are causing our problems.)
In contrast to both trickle-down economics and neoliberalism, the Biden administration is focused on altering the structure of the economy.
Over the past year, manufacturing construction in high-tech electronics, which the administration has subsidized through CHIPS and the Inflation Reduction Act, has quadrupled.
Tens of billions in infrastructure spending has been funneled to the states for road, water system, and internet upgrades.
More clean-energy manufacturing facilities have been announced in the last year than in the previous seven combined. (The Leftist pattern, more taxes, more spending. Let's look at the history:
2007 | IN BILLIONS $9,008 | DEBT-TO-GDP RATIO 62% | MAJOR EVENTS BY PRESIDENTIAL TERM Bank crisis |
| 2008 | $10,025 | 68% | Bank bailout and QE |
| 2009 | $11,910 | 82% | Bailout cost $250B ARRA added $242B |
| 2010 | $13,562 | 90% | ARRA added $400B, payroll tax holiday ended, Obama Tax cuts, ACA, Simpson-Bowles |
| 2011 | $14,790 | 95% | Debt crisis, recession and tax cuts reduced revenue |
| 2012 | $16,066 | 99% | Fiscal cliff |
| 2013 | $16,738 | 99% | Sequester, government shutdown |
| 2014 | $17,824 | 101% | QE ended, debt ceiling crisis |
| 2015 | $18,151 | 100% | Oil prices fell |
| 2016 | $19,573 | 105% | Brexit |
| 2017 | $20,245 | 104% | Congress raised the debt ceiling |
| 2018 | $21,516 | 105% | Trump tax cuts |
| 2019 | $22,719 | 107% | Trade wars |
| 2020 | $27,748 | 129% | COVID-19 and 2020 recession |
| 2021 | $29,617 | 124% | COVID-19 and American Rescue Plan Act |
| 2022 | $30,824 | 123% | Inflation Reduction Act and student loan forgiveness |
Does the reader see any reduction in the National debt or crises solved or averted by deficit spending?
Dr. Reich can play rhetorical games all he wants. He can spout his leftist theories and dissemble til the cows come home. But the simple, unvarnished fact is that we are spending ourselves into oblivion, and are soon reaching the point of no return.)
Biden understands that these investments must translate into high-paying jobs, which often require unions. “When I think climate, I think jobs … union workers are the best workers in the world,” he said in a recent speech on Bidenomics.
The monied interests don’t want unions, of course. The narrow congressional majority that got these bills passed rolled back some of the labor conditions that were originally on the tax credits and grants.
Moreover, much of the funding is pouring into so-called “right-to-work states” that make it exceedingly difficulty to unionize.
But a buoyant economy strengthens the hand of workers, making it easier to unionize — which helps explain the ubiquitous labor action this summer.
Voters may not yet understand Bidenomics, but it’s probably not necessary that they do in order for Biden and the Democrats to benefit.
If Bidenomics continues to alter the structure of the economy in ways that help the vast majority, voters will give Biden another term and reward Democrats with both houses of Congress.
And if Bidenomics is successful, it will make the American economy both stronger and fairer in years to come.
I’m betting on it. What do you think?
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