Mazzei Minute: 06/03/22
There is no way Joe Biden can fix inflation. Our President continues to live in a fantasy land of crazy economic thinking and incoherent ideas for dealing with the worst inflation since the 1970s.
The Wall Street Journal recently published Biden’s opinion article, “My Plan for Fighting Inflation,” which any sound economist would destroy in red ink and grade with a big fat F. After blaming inflation and gasoline prices on Vladimir Putin, Biden says Congress should spend more money on clean energy programs and tax credits.
In my 30+ years of economics, I’ve never heard anyone remotely rational say that the way to reduce prices is to spend more taxpayer money on alternative energy production. The nation at large is spending billions of dollars on wind and solar power, but that has obviously not helped anyone’s electric bills or reduced our pain at the gas pump.
The White House speechwriter and handlers must think we are all idiots when they wrote the words “keep reducing the federal deficit.” Biden is literally claiming “the largest reduction in history” because the 1.9 trillion dollars of COVID spending in 2021 is not being repeated in 2022.
His faulty strategy for “common-sense” tax reform to reduce the deficit is increasing the appropriation to the IRS so they can hound Americans to pay taxes already owed. He also wants to go after successful billionaires who create prosperity and thousands of jobs because he doesn’t believe they pay their fair share. For the record, Elon Musk paid $11 Billion dollars in taxes for 2021. Seems pretty fair to me.