Biden’s stimulus plan that raises the minimum wage, of course, undermines jobs by making employers pay more for their least expensive employees, so naturally what these employers will do is cut some of those jobs to protect their profit margins — this is especially true in states with a lower cost of living, as in many of the states in the South. This at a time when it is crucial to stimulate job growth. What’s the word for that. “Dumb” comes to mind.
The bulk of the program is this big giveaway to state government with deplorable finances — think New York and California. In other words, it rewards bad financial behavior by state governments with the most spendthrift mindsets. Another dumb.
Finally, it gives a huge amount of money to colleges and public schools, i.e., financing an education system that is already way overdeveloped to begin with. Another dumb.
And again we have this practice of giving money to people, which is part of the program which actually does address the immediate problem, but I ask you, is it smart for the federal government to be giving money to everyone — is that a smart practice in the long run? I think not.
Put another way, is it wise for the federal government, which is already so deeply in debt, to take on such an unprecedented amount of new debt? That’s what the big giveaway comes down to — an enormous expansion of federal government debt, which is already well beyond anyone’s real understanding before this stimulus plan is even put into effect. It mortgages our children’s future and their children’s future…and their children’s future.
What would make sense here is a massive infrastructure program by the federal government. What should have been done way back in the 2008 crisis but wasn’t. Are we about to repeat history?