President Joe Biden’s administration has enacted several policies that, according to critics, have directly contributed to rising inflation and the economic downturn currently plaguing the United States. From reckless government spending to disastrous energy policies, Biden's decisions have undermined economic stability, increased financial burdens on American households, and weakened U.S. global competitiveness. Below is a breakdown of how these policies have damaged the economy.
The American Rescue Plan Act (ARPA): Fueling Inflation
In March 2021, the Biden administration passed the $1.9 trillion American Rescue Plan Act (ARPA) with the stated goal of accelerating economic recovery from the COVID-19 pandemic. However, critics argue that this massive stimulus was unnecessary at a time when the economy was already rebounding. The influx of government cash into an economy still suffering from supply chain disruptions led to increased demand, outpacing supply and driving up inflation. According to Investopedia, this overzealous spending contributed to historic inflation levels, harming middle-class Americans the most. [1]
The Inflation Reduction Act (IRA): A Misguided Attempt at Economic Relief
Touted as a means to reduce inflation, the Inflation Reduction Act (IRA), signed into law in August 2022, aimed to lower prescription drug costs and reduce the federal deficit. However, many economists argue that the bill did little to curb inflation and instead expanded subsidies for green energy initiatives. According to The Daily Signal, these subsidies inadvertently led to increased premiums for seniors on Medicare Part D, thus increasing their cost of living. [2] The IRA is yet another example of how Biden’s policies impose unnecessary financial burdens on Americans while failing to achieve their intended objectives.
Energy Policies: Destroying American Energy Independence
Biden’s administration has aggressively pushed an anti-fossil fuel agenda, significantly hampering U.S. energy production. This includes revoking the permit for the Keystone XL pipeline and implementing moratoriums on new oil and gas leases on federal lands. These decisions have been heavily criticized for reducing domestic energy supply and increasing reliance on foreign oil, leading to skyrocketing fuel prices. The Institute for Energy Research argues that these policies have not only made energy more expensive for American consumers but have also increased transportation and production costs across various industries. [3]
Immigration Policies: Straining Public Resources
The Biden administration’s lax immigration policies have significantly worsened the crisis at the southern border. By rolling back key enforcement measures, the administration has seen an unprecedented influx of illegal immigrants. Critics argue that the rapid rise in illegal immigration has put immense pressure on public resources, including healthcare, education, and housing. These costs are ultimately shouldered by American taxpayers, further exacerbating the financial strain on already struggling households.
Trade Policies: Harming U.S. Competitiveness
Biden’s trade policies have also drawn criticism, particularly his restrictions on exporting advanced technologies such as AI chips. While the administration claims these measures are necessary for national security, industry leaders argue that they have hindered the competitiveness of U.S. tech companies on the global stage. According to Redmond Magazine, these restrictions have stifled innovation, reduced revenue for major American firms, and slowed overall economic growth. [4]
Regulatory Actions: Crushing Businesses and Consumers
The Biden administration’s regulatory overreach has led to increased compliance costs for businesses. By reinstating and expanding environmental and financial regulations, the White House has created significant hurdles for American businesses, particularly small and medium-sized enterprises. According to economic analysts, these regulations raise costs for producers, leading to higher prices for consumers and discouraging business expansion and job creation. In essence, the Biden administration’s regulatory framework is a direct impediment to economic growth.
Conclusion: The Need for a Course Correction
Under President Biden, America has suffered from historic inflation, weakened energy independence, and increased economic instability. The reckless spending of the ARPA, the counterproductive IRA, the destruction of U.S. energy security, and overregulation have all contributed to a financial crisis that continues to burden American families. If the country is to regain its economic strength, a fundamental shift in policy is needed—one that prioritizes fiscal responsibility, energy independence, and a pro-business environment.
Citations
[1] Investopedia, "How the American Rescue Plan Contributed to Inflation," https://www.investopedia.com
[2] The Daily Signal, "How the Inflation Reduction Act Raised Costs for Seniors," https://www.dailysignal.com
[3] Institute for Energy Research, "Biden’s War on American Energy," https://www.instituteforenergyresearch.org
[4] Redmond Magazine, "Biden’s Trade Policies and Their Impact on U.S. Tech Firms," https://www.redmondmag.com
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