Well, the government is going to keep spending money until they run out of it.
The problem is, they think they’ll never run out.
Shortly after agreeing to and signing a $1.9 trillion stimulus bill, President Biden began to push a $2.2 trillion “infrastructure” bill that Democrats believe they can push through Congress with zero support from Republicans.
Leaving politics aside, who is the bill really designed to help?
It’s labeled an infrastructure bill, but just 5% or so of the bill actually goes to fixing roads and bridges.
If you expand the common definition of infrastructure to include things like broadband internet, plumbing, and other projects of that ilk, still only 33% of the $2.2 trillion is devoted to those causes.
But the bill also includes pet projects, like $175 billion in subsidies for electric vehicles, $12 billion for community colleges, and $100 billion for public schools, including an initiative to make school lunches “greener.”
Biden plans to pay for this plan by raising the corporate tax rate from 21 percent to 28 percent, something that may be tolerable for multinational elites like Amazon (Jeff Bezos put out a glowing statement asserting Amazon’s commitment to playing along), but something that could really hurt incorporated small businesses around the country.
Put politics aside for a moment — because, believe us, if Republicans were in power, they’d be spending money on things that aren’t critical, either — who does this bill really help?
Yes, it will create some new infrastructure jobs. Great.
But the economy is already rebounding naturally. We see the Dow and the S&P regularly hitting new record highs, and rotation in the market is reviving stocks that had been left for dead, like Carnival Cruise Lines, which just hit its 52-week high.
The reality is, Democrats are capitalizing on what’s left of the pandemic as an excuse to pump a bunch of manufactured money into the economy, in some cases for good reasons, and in many cases to help their political allies.
Again, all politicians do this.
But when you can see it happening, you start to realize that the government is not your ally in the financial war.
Politicians are out for themselves. And you ought to be as well.
Our friend and publisher Rob Booker has introduced a new way to help folks fight back: it’s called the $5 Trade Club. Learn more about it here.
Trading isn’t for everybody, but for folks who are more and more worried about their ability to fight back and take control of their finances, it can be a valuable tool.
Don’t sit around waiting for the government to save you. Do something to take control for yourself.