The Democrats’ $1.9 trillion “American Rescue” plan, which has little to do with rescuing and everything to do with using the pandemic as an excuse to move the country closer to statism. The latest $1.9 trillion addition to the federal debt is best described as a left-wing slush fund.
Veronique de Rugy
Scour the newspaper any day of the week and you will read stories detailing the many failures of the federal, state, and local governments or agencies, and of their stupendous ability to commit the same mistakes over and over again. Yet these agencies are the one that people turn to in times of troubles or needs.
Politicians and bureaucrats continue to push and implement the most infuriating and misguided regulations and policies they can dream up.
This bailout is quite unfair to those relatively few states that are responsible with their finances. Through this federal action, taxpayers in those states have to bail out the government officials and citizens of irresponsible states.
In normal times the government supports many bad, irresponsible, and unjust policies, driven in part by perverse incentives. Not the least of these is an imprudent eagerness to please special interests. Emergencies and the resulting panic only further loosen whatever weak restraints there normally are against government misbehavior and malfunction.
Licensing requirements generally restrict the supply of services in the licensed industry by prohibiting some perfectly competent workers from working as providers.
The bottom line is that there is nothing historic about this budget, or these cuts.
The best aspect is that it keeps intact 90 percent of the old NAFTA; the worst is that what is mostly new and unique in USMCA is protectionist and economically destructive.
The pursuit of one form or another of third-party payment for health care services has removed most incentives for consumers to be careful about how they spend money.
Milton Friedman made the observation that the true size of government is measured not by how much it rakes in currently in taxes by how much it spends.
Elizabeth Warren has vehemently refused to say if the middle class would see its taxes go up to pay for M4A or how she would pay for this.
Voice of Capitalism
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