Biden's "Eco-Friendly" Economy Reform Will Leave Americans in Poverty: Research
A recent Hoover Institution analysis of Joe Biden's proposed tax system promises, if not a collapse of the economy, then at least tax slavery.
“Biden’s agenda would reduce full time equivalent employment per person by about 3 percent, the capital stock per person by about 15 percent, real GDP per capita by more than 8 percent, and real consumption per household by about 7 percent. Relative to the CBO’s 2030 projections for these variables, this suggests there will be 4.9 million fewer employed individuals, $2.6 trillion less in GDP, and $1.5 trillion less consumption in that year alone. Median household income in 2030 would be $6,500 less,” says the report.
While the headquarters of the Democratic Party vows to impose new taxes on the billionaires, in the long run, the lower and middle classes will still pay for everything.
Moreover, since electricity has not proven itself as the main source of fuel, oil and gas corporations will vehemently oppose Biden and Harris' innovations. Simply because the monopoly on fossil fuels is still in place.
“First, transportation and electricity will require a lot more inputs (including 1.3 million net additional energy workers) to produce the same outputs because of Biden’s ambitious plans to further cut the nation’s carbon emissions. Because these industries are a nontrivial share of the overall economy, that means 1 or 2 percent less total factor productivity overall. These effects would be significantly larger —likely dwarfing the (nontrivial) rest of the agenda—if the energy goals are taken literally. The costs would also be concentrated geographically.
“Second, labor wedges (the amount of the value created by additional work that goes to third parties) are increased by proposed changes to regulation as well as to the Affordable Care Act (ACA). The quantitative findings for the ACA should be no surprise given the findings from previous efforts in the United States and other countries to expand health insurance coverage.
“Third, Biden’s agenda reduces capital intensity by increasing average marginal tax rates on capital.”
The full report can be read HERE.