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Bidenomics will cost big: Wall St Journal

Washington: Democratic presidential nominee Joe Biden has kept the campaign focus on COVID-19 and President Trump, which has helped him avoid having to talk much about his own policies. That’s especially true of his economic proposals, says Wall Street Journal in an editorial. But a new study from the Hoover Institution on Biden’s tax, health-care, energy and regulation proposals predicts $6,500 less in median household income by 2030.

WSJ argues that Biden often cites Moody’s for saying his economic plan will yield faster growth and more jobs. But most economists at today’s big financial institutions, such as the ones at Moody’s, have a Keynesian bias that posits consumer demand and government spending as the main drivers of growth.

WSJ clarifies that they  are also not predicting a “depression,” as President  Trump does, if  Biden wins the election. The data show that the U.S. economy is recovering from the pandemic shutdowns faster than most economists predicted. Democrats may attempt to portray the economy as a disaster that requires trillions of dollars in new spending, but Biden would inherit an economy with strong growth momentum.

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