During the first State of the Union of his presidency, Joe Biden declared his plan to fight the worst inflation in 40 years would “lower your costs and lower the deficit.”
First, Biden claims he would cut the cost of prescription drugs. That’s a nice gesture, but one that will do nothing for the overall price inflation rate of 7.5% annually. Prescription drugs have only increased 2.5% since the start of the pandemic.
Second, he said he would cut energy costs for families by an average of $500 “by combatting climate change.” Once again, that’s quaint, and if Biden specifically meant nuclear energy — the only tool to liberate the free world from the control of the cartel of OPEC while reducing greenhouse gas emissions — he ought to have explicated it. But Biden’s allies have expressly focused on renewables, which simply do not produce the volume required to achieve energy independence, let alone a break-even point to beat the cost of inflation.
Given his boast that the International Energy Agency would release oil reserves to offset rising prices (very temporarily), it still doesn’t seem Biden is committed to resolving the demand side of the equation.
Third, Biden said he would cost the cut of child care. The bulk of mothers boxed out of the workforce are parenting school-aged children, and studies seem to confirm a strong correlation between regional school closures and maternal unemployment. Paid child care really isn’t the problem here.
So, how does Biden say he’ll lower the deficit? Through the magical poppycock that is a “global” minimum corporate tax rate and the bipartisan white whale of closing “loopholes.” This ignores an uncomfortable reality. The overwhelming majority of our projected increases in spending come from Social Security, Medicare, and the interest incurred by that debt. No president can curb our projected deficit growth without serious austerity measures to reform our entitlement spending.
Fuel prices are up nearly 50% from last year. Food is up 7%, and used cars are up more than 40%. Biden didn’t address durable goods, the actual cause behind our mounting deficit, or his own government’s constraints on our supply of food, transportation, and shelter.
He doesn’t have a plan — he has a fantasy.
