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Biden’s Hidden War – On the Middle Class

Posted on Tuesday, July 6, 2021
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by AMAC, Robert B. Charles
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34 Comments
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Any amateur magician knows palming a card or coin involves secretly taking something while distracting watchers. Biden’s big spending is that same trick, writ large.

Massive (unnecessary) federal spending on COVID, unemployment, anything-goes-infrastructure – games the system. Democrats promise money while taking more money – from the middle class. Here is how.

Putting aside whether spending is wanted, the question “how will you pay for it?” gets a slick answer: “Cut waste, tax the rich.” Convenient – but duplicitous. Nothing on the public record suggests Democrats – or many Republicans – have ever enduringly “cut waste.”

Why? Because finding federal waste, as bureaucrats strive to hide it, is tough. Once found, getting a program to end rather than show up under another shell is just as tough. As Ronald Reagan quipped, “federal grants are like rabbits, they multiply like crazy, and when they’re out, you can’t catch them.” See, e.g., Address Before a Joint Session of the Indiana State Legislature in Indianapolis.

“Tax the rich” is no less duplicitous. It sells as class warfare, if you favor that, which most do not. But it is another foil. Confiscating private wealth above the median falls way short. One analysis noted taxing wealthy Americans and corporations could generate $9.3 trillion, but “more realistically, $3.9 trillion.” Democrats have already spent that money.

“Even annually seizing 100 percent of all income earned over the one-million-dollar threshold could not generate more than $8.9 trillion.” How do you think that move affects the following year, job creation, productivity, investment, and production? Think it might go down? See, e.g., Issues 2020: Taxing the “Rich” Won’t Pay for Politicians’ Promises.

America’s tax base is, in the end, our hard-working middle class. Biden’s secret is that – when vote-buying and “infrastructure” spending are over – a massive burden falls on the middle class.

How can this be? The answer is simple. Inflation is the natural outgrowth of excess federal spending. As the government spends nonexistent money, the dollar’s value falls – that is, purchasing power in our pockets falls. The government prints money which chases less wealth.

This means we all pay more for less, a hidden tax on what we consume and invest. Plus, we earn less (since the dollar is worthless) for work done, which generating higher relative taxes on that work. But inflation is not the only “tax” that hits the middle class when we overspend.

We also pay with higher real prices for goods produced by corporations facing higher taxes since they pass the cost of taxes along. We pay with reduced job prospects, as companies cut employment and slow hiring, to compensate for having to shell out for higher taxes.

To slow inflation, the federal reserve raises interest rates, which raises the cost of borrowing – for companies and individuals. Whatever inflation does, the real economy slows as investment slows in response to higher costs of borrowing. That means another drag on employment.

As individuals, if we are borrowers with variable interest rate loans, mortgage, or credit card debt, we will pay increased interest – as the Fed raises rates to slow inflation. That is another tax.

To all this, add another Biden-driver of inflation. Beyond excess federal spending, Biden-Harris has shocked energy markets, ending US energy independence, shutting down efficient fossil fuel sources, shrinking supply which raises prices while increasing dependence on foreign sources. Who pays for that? The middle class.

Other sources of economic instability, which eventually fall on the middle class, include unforeseen implications of wider regulation of domestic companies, national security mismanagement – which triggers trade friction and emergency response.

To that, add higher crime, triggered by reduced support for law enforcement, border security, indulging lawlessness.

The cost of Biden’s crime spike for America’s middle class is just beginning but includes increased risks to businesses and families, elevated concerns over personal and property safety, a national exodus from major cities, more gun buying, and less confidence in the future.

Net-net, the rich will remain insulated from most social pressures, the poor increasingly dependent on endless federal largess, particularly as businesses struggle to hire from those paid to be unemployed, and the bulk of new spending, inflation, taxes, and insecurity – will fall on the middle class.

That fact – Biden’s sleight-of-hand – is not discussed, as it undercuts the narrative. The truth is Biden’s class warfare will not impair the rich or save the poor; it will hit the middle class.

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PaulE
PaulE
2 years ago

None of what you describe would be possible were it not for the rampant financial illiteracy and gross apathy that is present in the United States today.

Bill on the Hill
Bill on the Hill
2 years ago

These people within the federal gov’t, both parties have no concept of a monthly or annual budget, period…We are talking about wealthy lifetime politicians that go & STAY in DC to enrichen themselves, the greed & riches they receive becomes addicting, they can never get enough of it…
It is all about the POWER & the MONEY and at the expense of the middle class in the end. They are ADDICTS in their lust for power & money…
The current idiot running the show in the WH, with the help of his puppet masters, will bring this nation to it’s knees. We only need to look what has happened in (6) agonizing months under an incursion that STOLE an election… We NO longer have a secure southern border & we NO longer have secure elections, i.e. WE HAVE LOST OUR COUNTRY…
China is ready to walk right in without firing a single bullet & their Manchurian candidate is ready to hand them the keys to the kingdom & they will continue to cushion his bank accts in perpetuity.
Bill on the Hill…

Mark
Mark
2 years ago

Surprise, surprise. We unfortunately got what was voted for.. The road we’re being taken down is unreal yet what’s interesting, is no one is discussing or suggesting impeachment as was done with President Trump

Stephen Russell
Stephen Russell
2 years ago

No Middle class= No taxes

Firkins Lee
Firkins Lee
2 years ago

I am overjoyed to have sensible, strong, and accurate presentation of conservative information available. Thank you AMAC!

s lee
s lee
2 years ago

Biden is just “slight” period!

james carlyle
james carlyle
2 years ago

Good analysis of the effects of this administrations actions. My experience is that this is not exactly profound and is the same phenomenon I have experienced most of my adult life-I’m 86 years of age.

Carol
Carol
2 years ago

This Marxist crap of the left is intended to cause more middle class to slide into poverty, thereby becoming more dependent on the STATE! More dependence, more control by the left! The left’s goal is complete control of the country where NO ONE can get anywhere without kissing the backside of a leftist!

Irv C
Irv C
2 years ago

What happened to our once great Country? I really saw hope with Trump. I have 6 Grandkids and I see heartache for America and her future. It really is all democrats yet there are so man Republicans who haven’t either
The guts or brains to stand up and say: STOP!!!
It flat pisses me off. I don’t know how to yell it out. I write Congressmen Nd Senators and get the same CANNED reply. I call and I think it’s the same recording saying leave A Message. I wrote Trump about 8 times with some bogus reply. I’ve Written Biden 5 times with NO reply. I bet if I threatened his ass I’d hear back quick. With Handcuffs. Lord knows I do t wish hurt on anyone. Not even that harris thing.
What’s going to happen to our country?

aluminum head
aluminum head
2 years ago

This is going to be all figured in 2022. America will crash and burn or set the stage for 2024.
The civil war is coming.

Pete from St Pete
Pete from St Pete
2 years ago

Closing pipelines, closing coal mines, stopping fracking on unused government property and dumping huge piles of cash into windmills and Chinese solar panels while giving rich people rebates on electric cars hurts all classes other than the very rich. Just check the ever rising price of a gallon of gas which affects all aspects of our economic life. Expensive gasoline is a effective way to tax the middle and lower classes without calling it a tax. Thanks, Joe, the working mans friend.

Bill
Bill
2 years ago

Biden has no clue what is happening in Washington or anywhere else. What we are seeing is the continuing of treason by the great Kenyan usurper destroying the United States of America. The Alinsky communist party have taken over and are destroying every aspect and department of government.

Garye
Garye
2 years ago

Great article Mr. Charles!!
Clearly exposes the lies,hypocrisy and hatred biden,harris and the democrats have for regular hardworking, honest American Citizens!
Remember 2022,2024 and beyond is Our time to reject them and their destruction og Our Country!

WindRunner80HD
WindRunner80HD
2 years ago

beijing joe isn’t running anything hes just a puppet for the left obama is the one behind all of this which amounts to his third term! Everything was preplanned that’s why things are moving so fast at warp speed including stealing the electon from us. Get everything pushed through giving us no time to fight back dirty dirty dirty! Democrats hate this country yet they take full advantage of Capitalism to make them all filthy rich hypocrites every one of them!

Ellen in Dallas
Ellen in Dallas
2 years ago

Yes, no surprise, but we need a solution. As citizens and voters we can join local conservative groups and work to elect conservatives, but that is not enough. What can AMAC recommend for our 2.2 million members that will get attention and results? How can we strengthen our power? Action items are helpful.

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