Democrats are up for their radical economic agenda.
However, a new study found that growing tendencies of the government to introduce more taxes and promote social spending sprees would eventually destroy the economy.
Democrats’ Economic Agenda Busted
According to a study commissioned by the American Action Forum and conducted at Rice University, the US economy is on a disastrous path, should the policies of the Biden administration continue.
The study employed the same techniques that are being used by the Congressional Budget Office to carry out its proceedings.
As per the analysis, Democrats’ envisioned social spending bill would reduce the GDP of the country in the long run. Similarly, private investments, labor compensation, and the capital collected would also face a massive hit under this policy, the study noted.
The severity of the bill can be gauged from the fact that almost 650,000 Americans would lose their jobs under the plan, while the average wage would be reduced by $350.
Even though Democrats control both chambers of Congress, two of their senators are against the bill, which made the bill virtually redundant.
So, Sen. Manchin suggested some changes to the bill. While the revised bill of Manchin included $500 billion of debt reduction, it is still harmful to the economy, as per the latest study.
Millions from Biden's COVID relief bill went to museum, university programs pushing social, climate justicehttps://t.co/yHKl0sjsfF
This shouldn’t surprise you how they are spending & allocating our tax paid dollars !
— Joseph J Duggan (@mrjjd) May 25, 2022
In contrast with the Democrats’ claims, which said the bill would be a savior for the country, the factual study concluded it has too many negatives compared to its positives.
As Democrats were supposed to increase taxes under the Build Back Better agenda, this measure would also impact the economic well-being of Americans.
Tax Hikes, More Social Spending: Biden’s Formula Not Working at All
This is not the first time this progressive bill has come under scrutiny.
In fact, the “American Rescue Plan,” which was designed along with the same ideology, is considered the building block of current inflation in the country.
As Biden decided to give free money to the masses, the supply side of various commodities was disrupted, resulting in chronic inflation.
Now, economists believe the pursuance of another socialist agenda could have amplified the inflation manifold, which prompted two Democratic senators to save the day for America.
Republicans have often appreciated the efforts of Sens. Joe Manchin and Krysten Sinema for standing up against the bill that was bound to destroy the American economy.
To understand @Sen_JoeManchin's concerns about President Biden's climate and social spending bill, @maxinejoselow talked to his constituents about clean energy, where renewable energy is beginning to gain a foothold, but some residents remain skeptical.https://t.co/QRWAiPmYPR
— Dave Clarke (@davecclarke) May 18, 2022
Had the bill passed, America would have broken more records of inflation. Even without its passing, inflation rose to a 41-year high.
These rising prices turned out to be the major factor in voters’ alienation from Biden, which is shown in multiple polls.
Most of the time, respondents have claimed inflation and the deteriorating economy are the two most prevalent factors against Democrats.