<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1664814494464,"cms.content.publishUser":{"_ref":"00000162-07b6-de22-a173-2ffe05de0001","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1664814494464,"cms.content.updateUser":{"_ref":"00000162-07b6-de22-a173-2ffe05de0001","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_64804829", "obj": {"id":"27789","width":"16","height":"9","video":"1110034"} }); ","_id":"00000183-9ead-d5ca-a5d7-deaf18f60000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedIn an effort to boost its policies and chart a path to the future ahead of the November midterm elections, the White House released the Biden-Harris Economic Blueprint. The 58-page document showcases a five-part plan that will build on “historic legislative successes” and “executive actions” that the administration claims have rebuilt the economy “now and for years ahead.”
But a close reading of the self-promotional Sept. 9, 2022, blueprint reveals that, like the American Rescue Plan Act, the Infrastructure Investment and Jobs Act, and the misnamed Inflation Reduction Act, the policies promoted in the Economic Blueprint will increase spending and regulation, make the government larger and more intrusive, and consolidate power in the hands of federal bureaucrats at the expense of state autonomy.
‘TRICKLE DOWN’ ECONOMICS — THE OLDEST MYTH FROM THE OLDEST PRESIDENT
Onerous conditions and requirements attached to federal funds distributed to the states have been a hallmark of the Biden administration’s approach to spending. All three of Biden’s agenda items have given federal agencies significant powers to set guidelines and requirements that usurp federalist principles. If enacted, the policies proposed in the Economic Blueprint promise to be no different.
For example, the first pillar of the Blueprint, “Empowering Workers,” highlights the need for “greater worker power to unionize.” In practice, this means federal agencies may require state and local governments to prioritize union workers, regardless of the potential for added costs and limited availability in certain locales. Likewise, the Blueprint calls for an expansion of Green New Deal policies included in the IRA that will compel states to pay for progressive priorities instead of focusing on taxpayer needs.
In addition to using federal funding to coerce states into submission, the Blueprint assumes that throwing more money at a problem and creating a new program are the only solutions, rather than identifying the problem, finding a solution, and determining whether a program (or more likely several) already exists to help solve the problem. The Blueprint fails to account for the hundreds of billions of dollars that have already been allocated to the states through ARPA, the IIJA, and the IRA, many of which have been wasted on projects completely unrelated to the pandemic or economic recovery. One would think the administration has learned its lesson by now when it comes to flooding the states with money.
In addition to the impact of this massive spending spree during the worst inflation in decades, there are longer-term costs that will hurt the states. Once the federal share of funding dries up, states will be left holding the bag to support the continuation of dozens of programs. When faced with a series of fiscal cliffs, state lawmakers will be forced either to end the program, cut funding, or raise taxes to cover their costs. In any case, taxpayers are sure to end up on the losing side of whichever decision state lawmakers choose to make.
The Economic Blueprint continues a concerted effort to consolidate power in Washington, D.C., and subordinate state powers under the federal government. America’s federalist system has allowed the states to function as what Supreme Court Justice Louis Brandeis called “laboratories of democracy.” They have been free, within Constitutional boundaries, to experiment with and adapt various policies that fit their individual needs. The Biden administration threatens this experiment by co-opting the powers reserved for the states and creating one-size-fits-all policies for the entire nation.
Thankfully, the Blueprint is just a presidential wish list, not a comprehensive catalog of policies that will soon be foisted on the people. However, taxpayers should be concerned about not only the administration’s spending proposals but also its rogue executive actions. One such decision occurred in the May 13, 2022, Notice of Funding Opportunity from the National Telecommunications and Information Administration for the Broadband, Equity, Access, and Deployment funding provided by the Investment and Jobs Act. As noted in a letter from 13 Republican senators to Commerce Secretary Gina Raimondo, in places, the Notice of Funding Opportunity “undermines or conflicts with congressional intent and the plain language of the law.”
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NTIA’s action shows the willingness of some federal agencies to subvert the will of Congress to promote the Biden administration’s agenda.
Although the president’s Economic Blueprint claims taxpayers will “fairly reap the benefits of their work,” in practice, it will lead to higher costs, more central control, less freedom of choice, and further erosion of the system of accountability to taxpayers. It will continue to chip away at the crucial separation of authority between the federal government and the states.
Ryan Lanier is a state government affairs associate for Citizens Against Government Waste.
