President Biden this week is set to begin announcing the details of the puppetmasters his plan to commit trillions of dollars toward upgrading the country’s infrastructure, "fighting" climate change and bolstering federal safety net programs, as Democrats try to usher in a new era of bigger government — and spending — in the aftermath of the coronavirus, reports The Washington Post.
Biden’s push begins Wednesday when he is scheduled to head to Pittsburgh to pitch the first part of a $3 trillion or more effort to create work projects on the country’s roads, bridges and water systems nationwide. White House press secretary Jen Psaki said on Fox News Sunday that Biden would follow that announcement in April with a second package to include spending on social welfare programs, addressing healthcare, child care and other issues.
According to The Post, the White House this week also intends to release the early contours of its 2022 budget request to Congress. The blueprint is expected to call for a major increase in domestic spending starting next fiscal year, particularly targeting federal agencies that tackle education, climate change, housing and other longtime Democratic priorities.
Please note,w e are talking multi-trillions of dollars here for what are essentially crony programs.
The government has no money for these programs which will mean taxes will have to be increased by a massive amount or the funds will have to be borrowed (which would likely mean a major Federal Reserve bank monetization of such borrowings)---or a combination of the two.
Whatever the mix, it pulls money out of the productive sector and funnels it to the central power crony sector. This will result in one sure thing, the lowering of the standard of living for most of us (if we aren't part of the crony crowd).
The size of the planned spending is staggering. It will crush America (especially given the previous spending under the Trump administration).
The big question will be: How will the masses react when the coprolite hits the wall?
Will they understand it is expanding big government that is the problem and call for shrinkage of the government?
Or will they think that even more government is required and thus support that? Which, of course, would truly put the economy in hell.
I am not optimistic.
-RW
Earlobes unattached. These are getting quite rare.
ReplyDeleteReal estate has made more millionaires in America than anything else. Up next property grabs. Then we are truly in a whirlpool....swirling ...swirling....
ReplyDeleteMost millionaires own real estate. Property grabs are up next. The last tax haven for the common man and we afe truly in the whirlpool.
ReplyDeleteI don't think a "property grab is up next," at least not an outright confiscation.
ReplyDeleteIf you think about it, state and local govts already grab a good share of every commercial real estate owner's property every year via taxation.
As a commercial property owner, I can unequivocally attest to the fact that property taxes are already nearly my second largest expense (right after my debt service). However, in a way, I outsource that expense onto my tenants.
However, an elimination of stepped-up basis at death (also in Biden's plans) would deal a critical blow to the heirs of property owners ... and would result in many families having to sell highly appreciated assets to pay the cap gains taxes upon the death of the owner.
Plus, the socialist Biden also wants to eliminate the death tax exemption, which would mean that anyone who dies with an estate of any real value would be hit with a massive tax bill upon their death (and they already paid taxes when they acquired those assets, so this is double taxation).
My point is that the socialists don't need confiscate property (stocks, bonds, 401k, real estate, etc), which would be politically distasteful.
The best "business model" for the socialist is to tax, tax, tax production business and/or asset owners, who take on 100% of the risk after having worked hard, saved, and invested most of their lives. In this manner, the socialist lets the hapless business/asset owner think that he/she is the real owner of the business and/or assets, and these owners work their asses off and risk everything ... only to then be forced to give about 50% of what they earn to the statists.
All while the socialists take zero risk.
Is it diabolical? Yes.
Does it hurt society? Yes.
Does it destroy wealth? Yes.
Is it a highly effective political tool of the socialist? Hell yes.
Does the socialist use class warfare to divide Americans and pit the productive vs the "have-nots"? Yes.
Are Landlords "productive"?
ReplyDeleteThe thing is, the way I see it, without limits on land aquisition, only those at the top will end up owning 100% of the land, then people below have no hope of obtaining land/property.
Maybe there should be a limit of how much land people can aquire. At the rate we are heading Bill Gates will own all the farmland in America. Right now nothing is stopping a monopoly on real estate. The masses are being subjected to living in studios for their whole lives and working 50 years to pay for it.