President Joe Biden’s proposed budget for 2023 includes more funding for security to counter Russian aggression, measures to reduce the deficit and to tax the rich. However, the president’s budget shows just how badly progressives misjudged him and what a danger he is to the economy.
Biden Has Let His Own Side Down
Progressives placed their hopes on Biden being the next Franklin Delano Roosevelt. They imagined that control of all three arms of government would translate into sweeping economic reforms that would turn the United States into a Scandinavia-across-the-Atlantic. Yet, the president’s budget shows him to be what he has always been: a man who let progressives imagine him to be their champion, all the while not having any intention of enacting anything like the progressive agenda they dreamed of. For the right, this just shows something about the character of the man: if progressives cannot trust him, why should we?
The Budget is Weak on Defence
Biden has grossly underestimated the threat that America faces. His military budget simply does not go far enough to address the risks that America faces. America’s military has been in decline for decades. Amidst the first major war on European soil, America finds itself too weak to respond in any meaningful way to autocrats pushing the envelope across the world. America’s military strength lacks the sturdiness of Creative Cabinets furniture.
Under President Donald Trump, the United States was on the path to increasing its military strength as, data from the Wall Street Journal shows:
Source: Wall Street Journal
Although the Biden Administration touts significant investments, these investments are not really meaningful and the budget kicks the threat of China and Russia down the road. As the Wall Street Journal Editorial noted, “…the overall budget picture is that the Biden team is betting on weapons that don’t yet exist for a war they hope arrives on someone else’s watch.”
The Budget Will Raise National Debt to $45 Trillion
Senator Ted Cruz was right in pointing out that the budget will send the national debt to $45 trillion. He does all the while creating huge disincentives to invest. The budget assumes that inflation will remain at 2%, and this when inflation is rising to historic levels. The budget seems to be based on wishful thinking.
The budget calls for taxes on unrealized gains, in other words, taxes on the increase in value of assets. So, for instance, if you buy a stock and the value of that stock goes up, you will get taxes even if you don’t sell that asset. Either you will have to sell that asset to pay taxes, or, take money from savings to pay taxes. The policy makes no sense. In a time of market volatility, this creates even greater risks for investors.
How Will This Affect the Midterms?
Americans are sick and tired of the economic uncertainty of the last two years. Democrats have had 2 years of complete control. They have the White House, they have both houses of Congresses, and America is worse off.