TL;DR: Biden Doctrine: Reshaping How We Spend
Battle for Control: Who Holds the Purse Strings in Government?
The Biden Doctrine: Reshaping Government Spending
The Biden administration's economic policies have been misunderstood, according to a new report from Strategic Insights Report. Contrary to criticism of increased deficits and government expansion, the report finds that Biden's policies have given the economy time to heal, similar to Reagan's policies in the 1980s. Private spending as a percentage of GDP is now higher than it was under Reagan.
Key Findings
The Biden administration's goal is not just more spending, but more spending at the federal level, which is a significant shift in power from state and local governments.
The report finds that the federal government's share of total government spending has increased, while state and local spending has declined.
Despite concerns about deficits, the report argues that the Biden administration has focused on recalibrating spending, directing funds towards specific areas of need rather than broad-based increases.
The private sector has shown signs of robust activity, countering fears that government spending might crowd out private enterprise.
Economic Priorities
The report concludes that the Biden administration has not led a complete economic catastrophe, with the economy growing and joblessness remaining low.
However, there are concerns about tariffs, real wage growth, and deficits.
The report suggests that the next administration will face challenges in balancing economic growth with concerns about income inequality and federal revenue.
State and Local Government Reform
The report argues that the true fight will be at the state and local level, where deregulation and shifting power to states may be key issues.
However, the report suggests that Trump's plans to shift power to states may be premature and unlikely to succeed in the short term.
Report Card
The report concludes that Biden has done alright, with the economy on the mend and government spending less than it was under Trump in relative terms.
However, the report criticizes Biden for not being communicative about the move to centralize and suggests that Kamala Harris should own the message and drive home why welfare programs need to be tightly controlled at the center.