When Were You Better Off, Economically?

Before the pandemic, America under President Donald Trump was booming, and we had strong economic growth. The pandemic of course saw the global economy suffer. Then as we exited pandemic, we saw inflation shoot through the roof due to President Joe Biden’s reckless spending splurges, which fueled inflation.

The much heralded “Inflation Reduction Act” will go down in history as one of the biggest lies the Democrats told since President Barack Obama said you will keep your family doctor under Obamacare.

Inflation is going back up. Bidenomics as it is known means America is worse off.

We suffered high inflation and falling worker wages and now higher inflation and lower growth, which leads to a stagnating economy.

Indeed, the economy is much like President Biden himself, shot to pieces and in need of radical help (not the left-leaning sort of radicals at our university).

Our economy is growing at 1.6% for the first quarter of 2024, proving that last year saw a sugar rush, a false sense of security that Republicans warned about.

Of course, lots of the media did their best to dismiss Republican concerns but again we have been proven right.

We all know from our strained finances thanks to Biden and the left Democrats that you cannot spend more than you earn and that you need to be able to balance the books.

Last month I referenced how California is wasting money all over the place and I must point out that the vice president is from California and if we end up with four more years of Democrats we will all be poorer.

While GDP came in 1.6% for the first quarter of 2024, way down from the temporary growth spurt in last year’s second half, the core inflation rate in the first quarter jumped to 3.7% at an annual rate, way above the Fed’s 2% target. Consumer spending slowed.

Inventories slumped. Capital investment slowed. The trade deficit widened.

And what is the plan? Spend more, tax more, regulate more. More debt, more inflation, more stagnation. An economy on the down, just like the president.

Let us look at the record of the Republicans. According to the renowned economist, Larry Lindsey, people making less than $200,000 had an average tax cut of 5.5% under President Trump, those over $200k had a 3.9% tax cut.

Weekly earnings under a Republican White House rose 7.7%. This isn’t for the rich, this is for you and me, everyday hard-working Americans were better off under President Trump.

Under the Democrats, real wages have dropped 2.9%. That means a 10% plus difference vs the Republicans. Inequality also fell because Republicans know a rising tide lifts all boats and when you cut taxes for working people, you are broadening the American Dream.

Republicans know that free markets lead to free people, markets are colorblind.

Now, the Democrats want to cancel student loads, which I have warned about before, this will lead to a cost of $500 billion and stoke inflation which means higher interest rates and higher mortgages.

This is on top of $1 trillion plus costs of new regulations to make Democrats feel better about themselves and to pander to their socialist base.

Then just to finish this epic round of economic stupidity, President Biden’s tax plan will, according to the Tax Foundation, increase taxes by $4.4 trillion.

Now you may say, “so what, tax the rich,” but the harsh reality is that taxing American businesses more means a cut in our long-term GDP of 2.2%, a cut in long-term wages of 1.6% and 788,000 jobs lost. American incomes would go down by 2%.

The tax plan would make the tax code more complicated and less transparent and make our economy less competitive.

The increase in the corporate tax rate and the additional taxes on top earners would result in U.S. top marginal tax rates on income that are among the highest in the developed world.

Taxing businesses more will not lead to economic growth.

Corporation tax went from 35% to 21% in 2017 and the economy boomed. Raising this to 28% is economically illiterate and will encourage companies to find tax loopholes, just like Panera Bread did in California (a happily coincidence I am sure that they were excluded from the minimum wage hike after they donated to Gov. Gavin Newsom’s reelection).

The question Americans will need to ask in November is the same question, Ronald Reagan asked in 1980. Are you feeling better off than four years ago?

Neil Fitzgerald is an international nonprofit leader having served in the U.S., U.K. and globally for various nonprofit and charity boards. He served as a conservative council member in the U.K. and as a campaign manager. “Right Here, Right Now” appears Saturdays and rotates among local Republicans.