EDITOR NOTE: If your economic tendencies lean toward the more conservative camp, then you’ve likely identified several things wrong with Biden’s economic agenda--from tax increases to infrastructure spending. According to some experts, the most dangerous component of his plan happens to be the least talked about: entitlement spending. When we think of entitlement spending, we often think of welfare, Social Security, Medicare, unemployment insurance, etc. All the “safety net” programs intended to help those who are temporarily in dire financial straits. But that’s not always the case. Take the Biden Families Plan. This program is not necessarily for poor households who need it. It’s a handout that’s also going to the middle class as if targeted to make them reliant on a socialistic government program. And Biden’s calculation of the cost is way off--either miscalculated or downright deceptive. What’ll end up happening is that our already-oversized national debt will grow even more unsustainable--leading to even more draconian levels of taxation, or more socialistic government programs until the government has a full centralized grip over the economy and the people.
Sen. Joe Manchin’s public support Sunday for at least $2 trillion in new spending in a partisan budget bill is a huge win for the political left. This means a giant tax-and-spend bill this year is likely, and the biggest expansion of the entitlement state since the 1960s is now possible.
The entitlements are by far the biggest long-term economic threat from the Biden agenda. Tax increases can be repealed by a future Congress. Spending on infrastructure will slow as funding falls. The courts may block his racial preferences. But entitlements that spend automatically based on eligibility are nearly impossible to repeal, or even reform, and they represent a huge tax-and-spend wedge far into the future.
The media won’t talk about this, and Republicans are so far missing in action. But Americans need to understand the stakes.
Hoover Institution scholars John Cogan and Daniel Heil document nearby the entitlement expansions of the Biden Families Plan. It’s an important piece that lists how far the progressive left wants to go in expanding government’s reach into American family life. Federal child care, government paid family leave, free community college, a $3,600 tax credit per child, a permanent expansion of ObamaCare premium subsidies, universal pre-K, permanent expansion of the earned-income tax credit to workers without children, and more.
We’d highlight two points. First is the dishonesty about costs. Entitlements always start small but then soar. The Biden Families Plan is even more dishonest than usual.
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