The Democratic National Convention has come to a close. Between their speeches and their platform, one thing is clear, to every inequity or problem, the Democrats have a spending program or some government action to offer. The price for those programs, however, will be to kill the very job growth they claim to want.
The Democrats, for several decades now, and to an ever-increasing degree, decry the conditions in the United States.
They insist America is the land of inequity and inequality not opportunity. They don’t laud its success but, instead, decry its failures.
Those failures, according to the Democrats during the 2020 convention and otherwise, include “environmental annihilation” by Republicans (according to the Democratic governor of New Mexico), a lack of jobs, racism, lack of health care and people who didn’t pay their fair share in taxes.
Democrats, including and Joe Biden said they would correct all of those problems – wait for it – with more government. All the while, the Democrats also claim that their plans will BRING BACK JOBS.
The problem, of course, is that every promise the Democrats have made comes with either a record tax bill or record higher regulatory costs – and no, Joe Biden is not a moderate.
Indeed, Biden is offering a platform that convinced Jonathan Chait, of the liberal New York magazine, that “Joe Biden’s Platform Is More Progressive Than You Think.”
Biden wants the government to spend “$1.7 trillion in clean energy investment and a suite of tighter regulations to bring emissions to zero by 2050; a combined $2 trillion in new spending on early education, post-secondary education, and housing, a $1.3 trillion infrastructure plan, and a $15 minimum wage.”
Beyond that, the Democrats have a plan to usher the takeover of health care at a cost of trillions of dollars.
In short, the Democrats held a telethon this week for government programs on a scale we have never seen.
That is why Chait’s colleague at the Atlantic, Yascha Mounck, wrote that Biden’s plans are “significantly bolder than Barack Obama’s.”
Former Democratic presidential Andrew Yang, famous for pushing a universal income, echoed as much when he said “everything” Biden wants to do is “bold.”
As for starting a business, well you are out of luck. Not that the Democrats offer to make it easier to be in business or to start a business. Oh, they may have claimed it – but every policy they offer runs contrary to any such claim.
Their spending plans, tax increases (on the “rich”) and Biden’s plan for a regulatory war on energy can only logically mean one economic result: far higher costs to doing business in America or trying to start a business.
That is why economist Stephen Moore and I warned people several months ago that Biden’s policies would lead to a depression. It’s not a difficult prediction to make. After all, the most basic law of economics is that the more something costs, the less of it you get.
Higher tax rates for business are higher costs on business and employers. Higher-income tax rates for individuals are higher costs as well. Both deter business start-ups and are disincentives to take risks. More regulations are higher costs. Regulations aren’t just words on paper. They are mandates that require money for compliance.
So, according to the laws of economics, under Biden, we will have less economic growth and jobs then we would without his plans. Biden’s plans will be measured not just in lost profits but in lost economic growth and, therefore, lower standards of living.
Indeed, the last time these policies were tried, although to a lesser degree, was when Biden was vice president. The result was the only time in our economic history where a president didn’t have a single year of economic growth above 3%. During that period, America lost over 200,000 manufacturing jobs and lagging wage growth.
Growth above 3% wasn’t restored until the costs of doing business was reduced in America.
After the war on American business was ended by President Trump, taxes reduced and regulations cut, American business restored over 524,000 manufacturing jobs and higher wage growth.
In sum, when Biden claims there will be 5 million new manufacturing jobs, you have to ask why that would be.
In plain truth, the Biden/Harris spending/taxation/regulatory plan offers nothing for American employers.
That’s bad news for the jobs Democrats claim they will create. Instead, Biden’s more-aggressive-than-Obama plans will do even more damage to the economy than America has seen since the Great Depression.
Tom Del Beccaro is an acclaimed author, speaker and the former Chairman of the California Republican Party. His latest book is "The Divided Era: How We Got Here and the Keys to America's Reconciliation."