EDITOR NOTE: If the Fed’s monetary policies have been effective in transferring wealth from the middle class and below to the pockets of the wealthiest, President Biden’s recently unveiled American Rescue Plan, American Families Plan and American Jobs Plan supposedly aim to reverse the direction of this wealth transfer--taking from the richest American households and redistributing it among those below that category. There are a couple of glaring problems with this approach. First, it doesn’t address the longer-term effects of continued fiscal spending and money printing that claims the future incomes of all Americans across the board. Second, Biden’s plan reinforces the coercive and intrusive role that “big government” plays in the lives of every American, gaining slightly more control over economic and social ground the more Americans are willing to trade government-issued benefits in exchange for submission. What’s at stake is your freedom and the value of capitalism itself.
Franklin D. Roosevelt created the modern government-funded social safety net in the 1930s to aid lower and middle-income families—paid for in part by raising taxes on the richest Americans. Dwight Eisenhower built the interstate highway system in the 1950s. John F. Kennedy defined federal industrial policy in the 1960s by pledging to put a man on the moon by decade’s end.
In his first 100 days in office, Joe Biden has been attempting to emulate all three, seeking to combine and update for the 21st century his predecessors’ visions for a muscular Washington role in the economy.
With his $1.8 trillion American Families Plan unveiled Wednesday—following his $2.3 trillion American Jobs Plan and his $1.9 trillion American Rescue Plan—President Biden has proposed $6 trillion in new federal spending for the next decade. That is far more than any recent president at a comparable point in their terms.
Beyond expanding the size and scope of government, Mr. Biden’s program aims to redistribute trillions of dollars of resources from the highest-earning households and businesses to everyone making less than $400,000 a year.
He suggests doing so by undoing a portion of former President Donald Trump’s tax cuts for corporations and high-income families. But Mr. Biden also wants to go further, giving the Internal Revenue Service more resources to scrutinize alleged tax avoidance, adding higher and different types of capital-gains taxes for certain investors, and hiking taxes on a popular form of Wall Street compensation known as carried interest.
Originally posted on WSJ