Q&A of the Day – The Impact of the Biden Administration's Policy on Our Lives
Each day I feature a listener question sent by one of these methods.
Email: brianmudd@iheartmedia.com
Social: @brianmuddradio
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Today’s Entry: Hi Brian - thank you for a very informative program
I heard this morning your analysis with the lead title that the average American is 3.5% worse off since before Biden taking over. I was surprised to hear that because I certainly feel a lot worse off than 3.5%. You laid out your analysis by netting the cumulative income change vs the cumulative cost of living change over the 3.5 years of his presidency. I know that you are limiting it to just the financial effects but that’s the least of the problem.
My analysis follows:
Biden’s influence on people’s income is much lesser than his effect on the cost side of the equation. He drove costs up directly due to his limiting energy supplies and causing energy costs to rise. Those costs directly affect the cost of living across the board. People’s income growth is much less relating to Biden’s efforts and more on their own (investments and careers). Secondly, Biden has not unified the country. In fact, we feel more divided. Third, he has weakened the US by making us again dependent on foreign sources of oil for energy. Fourth, under his watch we have new wars that are costing our Treasury big dollars. I give him some credit for getting others to pitch in but we carry the lion’s share of the load. Fifth, under his watch terrorists have been emboldened and have massacred citizens of our only ally in the Middle East. Biden’s response has been at best lukewarm and generally against Israel’s interests. In general, Biden’s foreign policy is one of appeasement with the objective of not letting any action flare up. For example, arming Ukrainians with enough weapons to just maintain an equilibrium in the war but not enough to beat the Russians. Also, insisting on cease fire in Israel when any objective minded person knows that it will be an opportunity for Hamas to arm up and move the hostages away from the IDF incursion footprint. Also, Iran has turned its back the international nuclear inspectors, yet Biden is allowing them to continue selling oil to fund their nuclear weapons development. In short, the world has gotten very unsafe under Biden. Finally, his domestic policy is geared towards buying votes by doing whatever it takes, such as paying off student loans for the rich and lifting all regulations for abortion.
So, he has caused all of us to be a lot more affected than just 3.5%. He is the worst president that this nation has had in the past century and a half.
Bottom Line: Mic drop. Well done.
You’re absolutely right that there’s more to the story than the basic brush strokes I used to paint the overall economic impact of Bidenomics. As I mentioned yesterday: Based on the Bureau of Labor Statistics’ most recent reporting the average income for Americans has risen by 16.5% since January of 2021 – which would be great if not for the effects of ‘Bidenflation. With yesterday’s inflation report accounted for we’ve now seen the cost of everyday life rise by almost exactly 20% since the day that Joe Biden was sworn in as president (Thus, the difference between income growth and the cost of living is 3.5%). Your in-depth policy analysis speaks well to the broader impact of the Biden administration's policy on our lives. On that note, let’s breakdown the administration’s performance based on measurable public policy.
There are four types of public policy:
- Substantive: Policy types include criminal justice, economic, immigration, foreign policy
- Regulation: Policy types include regulating the environment, financial sector, healthcare, labor
- Distribution: Policy types include agriculture, education, housing, Medicare and Social Security
- Redistribution: Policy types include minimum wage, progressive taxation, social programs
As always there are two sides to stories and one side to facts. We can compare where we are today in each of those major policy categories to where we were previously starting with substantive policies.
- Criminal Justice: The national crime rate is approximately 5% higher since the onset of the Biden administration
- Economic: Average American is 3.5% worse off net of inflation
- Immigration: Where. To. Begin. Record illegal immigration under the Biden Administration
- Foreign Policy: The failed withdrawal from Afghanistan and collapse of the country to terrorists, the Russian invasion of Ukraine that the US is fighting by proxy, the Israel-Hamas war that the U.S. is playing both sides in, the resurgence of ISIS and Islamic terrorism, etc.
Of the most substantive policy categories the Biden administration demonstrably has a net negative track record in each. As for regulations under the Biden administration...
According to the George Washington University Regulatory Studies Center, the Biden administration has issued a record number of what are considered to be “economically significant rules” for the length of time he has been in office. The Biden administration issued 66 “significant” regulations in April alone. There’s subjectivity in inferring whether regulations are positive or negative. It depends on what one’s perspective on government intervention in industry and society should be. With that said the Biden administration has had a heavier hand in issuing mandates that affect our daily lives than any other president.
Distributive policies become a bit more subjective still as the federal government is involved in providing funding and subsidies for segments of society to influence outcomes. US agricultural production has reached record levels under the Biden administration. That could be considered a win. Education outcomes in the United States have continued to decline to the lowest levels measured since the onset of the US Department of Education in 1980. Housing inflation has been higher than the overall inflation rate since the onset of the Biden administration leading to much lower overall housing affordability. Medicare solvency is an area that could be considered a big win for the Biden administration. Since the onset of his presidency the expected insolvency date has been extended by eight years (to 2036) largely due to changes presented in the “Inflation Reduction Act”. The Social Security insolvency date is unchanged (2035) since he became president.
As for the redistributive policies – they’re entirely subjective based on one’s view of what the federal government should do. The Federal minimum wage is unchanged. The Biden administration has raised taxes while engaging in record spending on federal government assistance programs – led by growth in federal assistance to noncitizens. You’re welcome to view that as you will.
On balance, the Biden administration can claim success with agricultural production and Medicare’s near-term solvency. The administration has net failures in all other major measurables. So, yeah, to your point, that’s probably greater than the equivalent of life being 3.5% worse with Joe Biden as president.