President Joe Biden’s re-election campaign, which touted the creation of over 10 million jobs, may not be the savior hoped for. Since the summer, the government has continuously presented “Bidenomics” as a solution to economic issues, but new financial data shows a more nuanced picture, warning of probable economic challenges ahead.
The vast spending measures launched by the Biden administration, with a price tag in the billions, now appear to be casting a shadow over the budgetary landscape.
Among the global turmoil and tragic events, the Treasury Department dropped a less-noticed bombshell: the fiscal year 2023 deficit reached a staggering $1.7 trillion, a 23 percent increase in just one year, primarily due to the high cost of servicing the federal debt, which alone amounted to $879 billion.
However, in the era of “Bidenomics,” where multi-trillion-dollar deficits may become the new norm, this concerning trend may be the tip of the iceberg.
According to E.J. Antoni in a Fox Business post, the key engine behind these massive deficits is the federal government’s spending, which surged to an astounding $6.1 trillion in the preceding year.
Government receipts, on the other hand, fell considerably short of expectations, reaching $4.4 trillion, much less than the predicted $5 trillion. A sluggish economy and potentially counterproductive tax rises were key factors in the $457 billion drop in collections from the previous fiscal year.
Interest payments on the government deficit have surpassed the defense budget in size. Paying $879 billion to sustain the debt should be a flashing red light, but the Biden administration is dead set on continuing its reckless spending spree. History provides gloomy forewarnings.
Is Joe Biden steering the United States down a path reminiscent to the British Empire’s decline?
One might go back to the post-World War II fall of the British Empire to gain a sense of what the future may bring. British debt had risen to 200 percent of the empire’s gross domestic product (GDP) at the time. The United Kingdom has entered a period of extended economic distress.
Affordability became a big worry as the country was unable to fund the military force that had formerly ensured its worldwide dominance, eventually contributing to a loss in British influence in the global arena.
Joe Biden’s strategy appears to reflect history, and China may be the biggest benefactor of this spending frenzy. Such a spending trajectory has the potential to send the United States down a road similar to the British Empire’s long-term economic downfall.
Despite the clearly unsustainable nature of this route, the Biden administration is committed to greater government spending and seemingly interminable multi-trillion-dollar deficits.
According to Antoni, “Financial markets are beginning to wake up to the stark reality that the Treasury may face challenges in servicing its debts, and that day may be approaching sooner than we think.” “As a result, when lending money to the Treasury, investors are now seeking higher yields, resulting in an increased cost to service the debt.”
As these large deficits continue to increase the debt, gross interest payments are increasing as new debt is issued at rising interest rates.
The current inflationary pressures, according to Christopher Neely, Vice President of the St. Louis Federal Reserve, “are only poised to make it more difficult for the federal government to secure loans.”
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Bidenomics and Joe Biden’s Prospects for a Second Term
Inflation is silently reducing American consumers’ purchasing power, and it is particularly harsh on minorities, a critical section of the Democratic Party’s political base.
President Biden would be well to learn from history, since economic issues have frequently spelled the end of second-term ambitions for his predecessors, dating back to Herbert Hoover.
‘It’s the economy, stupid,’ a famous slogan from Bill Clinton’s 1992 campaign, played a crucial part in stopping George H.W. Bush from obtaining a second term. Ironically, Biden’s election win was contingent on convincing the American people that Donald Trump’s actions were harming the economy.
With the impact of Bidenomics becoming more obvious, the White House may be sliding back into Trump’s grasp.
According to Morning Consult, 49% of voters in seven critical swing states feel Bidenomics is harmful to the economy, nearly double the proportion who say it is good.
Even among voters in swing states who support his re-election effort, just 56% see Biden’s economic policies favorably, compared to 86% of Trump backers. Biden faces a difficult battle in winning over undecided voters, as just 2% of this group views Bidenomics positively, while a sizable 46% views it negatively.
One possible advantage for the president in this group is that a sizable 41% of undecided voters have yet to form a judgment on Bidenomics.
John Rossomando, a renowned defense and counterterrorism expert who formerly worked as senior expert for counterterrorism at The Investigative Project on Terrorism for eight years, has contributed to several prestigious publications.
His work has appeared in The American Thinker, The National Interest, National Review Online, Daily Wire, Red Alert Politics, CNSNews.com, The Daily Caller, Human Events, Newsmax, The American Spectator, TownHall.com, and Crisis Magazine, among other publications.
He has also served as senior managing editor at The Bulletin, a daily newspaper with a readership of 100,000 in Philadelphia, where he was awarded first place by the Pennsylvania Associated Press Managing Editors for his great reporting.
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What is “Bidenomics,” and how does it relate to Joe Biden’s re-election campaign?
“Bidenomics” is a term used to describe President Joe Biden’s economic policies and initiatives. It is a central theme in his re-election campaign, with a focus on creating jobs and addressing economic challenges.
How has inflation impacted the buying power of American consumers, and who has been most affected by it?
Inflation has eroded the purchasing power of American consumers, particularly impacting minorities, a key constituency for the Democratic Party.
Why is the comparison to the decline of the British Empire after World War II relevant in the context of Biden’s economic policies?
The comparison highlights the potential long-term consequences of massive government spending and rising debt, drawing parallels between the economic challenges faced by the United Kingdom and those the United States may encounter.
What are the potential risks and benefits of “Bidenomics” for the 2024 presidential election?
The potential risks include economic challenges that could impact Joe Biden’s re-election prospects, while the benefits may include job creation and economic recovery.
How do voters in swing states perceive “Bidenomics,” and what impact might this have on the election outcome?
A significant portion of voters in swing states view “Bidenomics” negatively, raising questions about how this perception might influence the election results.
What are the historical precedents for economic issues affecting presidential re-election campaigns?
Economic challenges have historically played a pivotal role in determining the fate of incumbent presidents seeking re-election, as seen in the cases of Herbert Hoover and George H.W. Bush.
Who is John Rossomando, and what expertise does he bring to the discussion of economic challenges and presidential campaigns?
John Rossomando is a respected defense and counterterrorism analyst who has contributed to numerous publications. He offers valuable insights into the economic and political landscape.