Originally published at The Daily Economy. 

Driven by progressive policies that stifled growth and burdened Americans with skyrocketing debt, elevated inflation, and economic malaise, has President Biden’s administration cemented its economic legacy as a failure? Despite promises of a “build back better” economy, the results are troubling, with policies rooted in overspending, overtaxing, and overregulating, pushing many Americans further from prosperity. 

Under President Biden, the national debt grew substantially, especially without a war or pandemic, surging past $36 trillion — a staggering $10 trillion increase since 2020. This debt explosion stemmed from massive spending initiatives, including the American Rescue Plan Act, the so-called Inflation Reduction Act, and many other reckless spending packages. Far from stimulating growth, this spending fueled inflation and undermined economic stability.

The Federal Reserve, charged with combating inflation, was forced to hike interest rates at a record pace, raising the federal funds rate from near zero to over five percent in just two years. These hikes directly responded to the monetary inflation crisis created by the Federal Reserve and exacerbated by Biden’s profligate fiscal policies. While interest rates have come down some over the last year, Americans face higher borrowing costs for homes, cars, and businesses, squeezing family budgets and discouraging investment.

Though there are signs of an economic recovery, real weekly earnings have declined by two percent since Biden took office as inflation outpaced wage growth for most of his presidency. This decline in purchasing power disproportionately hurts low- and middle-income households, the very groups progressive policies claim to champion.

Adding to the economic woes is a labor market hampered by a declining labor force participation rate. While the unemployment rate appears low at around four percent, this masks the reality that millions of Americans remain out of the workforce. Policies that disincentivize work — such as enhanced unemployment benefits, expanded welfare programs, and increased regulatory burdens on businesses — have created a perfect storm of lower productivity and higher dependency on government programs.

Regulatory overreach has further compounded economic challenges. According to the American Action Forum, the Biden administration issued $1.8 trillion in costly final rules, making it one of the most regulatory-heavy administrations in US history. These rules, which include onerous environmental regulations, expansive labor mandates, and restrictions on energy production, acted as a hidden tax on us. They drove driven up costs for businesses and consumers.

The administration’s war on artificial intelligence (AI) and corporate mergers were among the most damaging regulatory efforts. The Federal Trade Commission (FTC) and Department of Justice (DOJ) aggressively sought to stifle innovation and business growth under the guise of protecting competition through antitrust action. Instead of fostering a dynamic economy, these agencies created a climate of uncertainty that discourages investment in new technologies and impedes market efficiency. AI, which holds transformative potential for economic growth, was targeted with heavy-handed oversight that risks driving innovation overseas.

One of the most glaring examples of regulatory overreach was the Biden administration’s stance on mergers and acquisitions (M&A). The FTC and DOJ adopted a hostile posture toward M&A activity, essential for fostering business growth and increasing efficiency. By blocking mergers without sound economic justification, these agencies undermined businesses and sent a chilling message to investors. Such interference in private-sector decisions contradicted free-market capitalism and harmed the economy by stifling growth opportunities.

Similarly, the administration’s push for sweeping regulations on artificial intelligence threatened to derail a promising industry. Instead of embracing AI as a tool for economic advancement, the administration appeared intent on imposing burdensome compliance requirements that would discourage innovation and reduce America’s competitiveness on the global stage.

The path to reversing this economic malaise lies in rejecting the overspending, overtaxing, and overregulating policies that define Bidenomics. President Trump and Congress must prioritize fiscal discipline by cutting government spending to at least pre-pandemic levels and limiting it to sustainable levels. This should be done through a strict fiscal rule that caps expenditure growth at a maximum rate of population growth plus inflation. Spending less can alleviate the debt burden that threatens future generations.

Second, tax reform should focus on lowering tax rates, broadening the base, and simplifying the tax code to incentivize work, investment, and innovation. High taxes discourage productivity and entrepreneurship, while a pro-growth tax system can unlock the potential of American workers and businesses.

Third, regulatory reform is essential to restoring economic freedom and unleashing the full potential of the private sector. This includes reining in agencies like the FTC and DOJ, which have overstepped their bounds in pursuing ideological goals at the expense of economic progress. It also means adopting a balanced approach to AI governance that promotes innovation while addressing legitimate concerns without stifling progress.

The economic legacy of Bidenomics will be remembered as a cautionary tale of how progressive policies undermine prosperity. The administration’s decisions imposed significant costs on the American people, from an explosion in national debt to inflation, higher interest rates, regulatory overreach, and declining real wages. Voters chose a different direction with Trump.
​
The better approach is returning to the principles that have historically driven American prosperity: limited government, fiscal responsibility, and economic freedom. By embracing these principles, we can chart a path toward sustainable growth, higher living standards, and greater opportunities for all Americans.

Overview
The Trump administration, supported by a Republican-led Congress, has a pivotal chance to reverse the damage inflicted by the Biden administration's misguided antitrust policies. This report outlines the path to unleashing America’s tech potential through innovation, competition, and free-market principles.

Key Points

• Restore the Consumer Welfare Standard: Antitrust enforcement should prioritize consumer benefits rather than penalizing success or favoring bureaucratic control.
• Boost Innovation and Investment: The U.S. tech sector leads global innovation with $450 billion in annual R&D investments, which drive advancements in AI, biotechnology, cybersecurity, and energy.
• Empower Small Businesses and Entrepreneurs: Platforms like Amazon and eBay provide tools for small businesses to reach global markets and fuel regional economic growth.
• Create High-Paying Jobs: The tech industry directly employs 9.4 million workers, with a ripple effect creating additional opportunities in manufacturing, logistics, and construction.
• Enhance National Security: U.S. leadership in AI and quantum computing is essential for maintaining a strategic edge against China and other global adversaries.
• Reject Regulatory Overreach: Excessive regulation under Biden stifled innovation and increased costs for consumers. Removing these barriers will restore competitive markets.
• Encourage Mergers and Acquisitions (M&A): Smart M&A policies enable technological breakthroughs and ensure the U.S. remains an innovation hub, unlike Biden-era policies that blocked critical deals.
• Protect Financial Security: The tech sector underpins the financial stability of millions of Americans, playing a vital role in retirement accounts and pension funds.
• Strengthen Global Competitiveness: By rejecting European-style overregulation and authoritarian state subsidies, the U.S. can maintain its technological dominance and foster free-market innovation.

Conclusion
​The report highlights a roadmap for the Trump administration and Congress to promote free-market policies, secure America’s technological leadership, and prioritize innovation and economic growth. Confirming regulatory leaders who support these principles is vital to achieving these goals.

​As President Biden’s term ends, we see a flurry of last-minute legislation. Meanwhile, President-elect Trump is gearing up for his inauguration next week, setting the stage for a new chapter in national politics. The policy landscape is heating up at the state level as legislative sessions get underway. In Texas, the 89th Legislative Session kicks off tomorrow, and I’ll be closely monitoring key bills.

In this week's episode, I discuss these topics and more. You can watch it on YouTube below, listen to it on Apple Podcast or Spotify, or visit my website vanceginn.com for more information.

​In the Energy News Beat - Conversation in Energy with Stuart Turley, Dr. Vance Ginn is interviewed about various pressing economic and political issues. They discuss the recent presidential debate, the state of the U.S. economy, the implications of red-state policies on job growth, and the impact of high energy costs on inflation. The conversation also covers the importance of school choice, immigration reform, Supreme Court rulings on free speech, the Chevron Supreme deference Court decision on regulatory issues, and the challenges of achieving net zero emissions amidst global economic shifts. Dr. Ginn emphasizes the need for sound financial policies and reducing government spending.


Please follow Vance on his substack HERE: https://vanceginn.substack.com/. It is a great source of finance and political insights. 


Vance, I would like to have you back and on the 3 Podcasters Walk into a Bar with David Blackmon and Rey Trevio. - Thanks again for your time, and talk soon - Stu 

Originally published at AIER. 

​The US economy faces numerous challenges, exacerbated by policy uncertainty and excessive government intervention. Milton Friedman famously said, “If you put the federal government in charge of the Sahara Desert, in five years there’d be a shortage of sand.” This sharp observation underscores the inefficiencies often associated with government intervention. Instead, we should advocate for free-market solutions that empower individuals and businesses to drive innovation and growth.

Election years heighten policy uncertainty, driving economic volatility. Businesses and investors become cautious, waiting to see which policies will prevail. This hesitation can slow economic activity, affecting job creation and investment in new projects. More than half of Americans think we are in a recession even when the headline data say otherwise, reflecting a disconnect between reported statistics and personal experiences.

Policy uncertainty during election years exacerbates these issues. The upcoming elections could significantly impact economic policies, depending on the direction taken by the administration. Whether it’s Biden’s continued interventionist policies or a shift under Trump, the stakes are high. Businesses, investors, and consumers are left guessing, which stalls responsible decision-making and hampers economic growth. 

The recent meeting of the Business Roundtable highlighted these concerns as both Biden and Trump pitched their economic visions. According to the Tax Foundation, Biden’s tax plan, which includes increases on corporations and the wealthy, could reduce GDP by 2.2 percent and eliminate 788,000 jobs over time. On the other hand, Trump’s tariff proposals that hike taxes on Americans would have economic consequences, increasing consumer prices and reducing household incomes.

The Federal Reserve’s decisions also play a crucial role in shaping the economic landscape. Recent hikes in interest rates to curb inflation have added another layer of uncertainty. Higher borrowing costs can dampen consumer spending and business investment, slowing economic growth. The Fed’s policy trajectory remains uncertain, contributing to a cautious outlook among businesses and investors.

Biden’s regulatory approach further complicates matters. His administration has introduced numerous regulations affecting various sectors, from energy to finance. While intended to address climate change and market stability, these regulations often have significant compliance costs and operational challenges. The regulatory burden can stifle innovation and deter investment, particularly in industries struggling with economic headwinds.

Another key aspect is the role of institutions. Friedrich Hayek, in his seminal work “The Road to Serfdom,” cautioned against the overreach of central planning. He emphasized that central planning often leads to inefficiencies and a loss of individual freedoms. His insights are particularly relevant today as we navigate the complexities of modern economies. To truly flourish, governments should embrace free-market capitalism and resist the creeping influence of socialism.

This principle applies across sectors. By focusing on the efficient use of resources, reducing regulatory burdens, and fostering competition, we can build a more prosperous future. The bottom-up approach ensures better utilization of resources and empowers entrepreneurs, businesses, and local communities. Policies such as eliminating unnecessary regulations, reducing corporate tax rates, and promoting school choice are vital. These policies drive economic growth and ensure that resources are used where they are most needed.

Policy uncertainty during election years can create a precarious economic environment. Given the numerous issues in Washington, states must lead the way in our system of federalism. The increasing divergence between red and blue states on taxes, labor, and education highlights this trend. Red states cut taxes and promote business-friendly policies, while blue states often expand government programs. This divergence allows states to set examples of effective governance through free-market principles. By reducing regulatory burdens, passing sustainable budgets, and fostering competition, states can mitigate some national policy uncertainties that stall economic progress.

The next big step in federalism involves states innovating beyond traditional policies. For instance, states should focus on restraining government spending, eliminating bad taxes like income taxes, and reducing onerous regulations. Policies promoting school choice can also drive education reform and better outcomes, ensuring that all children have access to quality education regardless of their socioeconomic background. In addition, more freedom in technology and innovation should be ensured to support the next big revolution that improves our lives and livelihoods.

To move forward, we must build from our past experiences and rise to overcome obstacles. We can foster innovation and resilience by acknowledging and learning from our failures. It’s essential to recognize that failure provides valuable lessons and opportunities for growth. Expanding government intervention in response to failures often stifles this learning process and leads to greater inefficiencies.

Policy uncertainty during election years can create a precarious economic environment. States must lead the way in our system of federalism, setting examples of effective governance through free-market principles. By passing sustainable budgets, reducing regulatory burdens, and fostering competition, states can mitigate some national policy uncertainties that stall economic progress.

Let’s leverage the strengths of the free market, prioritize efficiency, and ensure that our policies truly benefit Americans. By embracing free-market principles, reducing regulatory burdens, and fostering competition, we can pave the way for a stronger and more prosperous America. Together, we can build a future where smart policies and strong institutions that support life, liberty, and property pave the way for economic resilience and growth.