So Biden didn't just swing and miss, he fumbled the whole game. When a political body tinkers with the economy, even with the best intentions, even when the tinkering is directed toward a self retiring debt, success only breeds more arrogance and dangerously stimulates the temptation to tinker the more with other people's economic lives. Biden was playing with trillions of borrowed dollars that probably cannot be paid back.
So a self-retiring debt, such as a toll bridge, is a prudent government investment because it permits commerce to thrive by crossing the bridge but there is still a downside. The money devoted to the bridge in a normal world must be diverted from the private economy and that diversion means that resources that the free market would allocate cannot be devoted to increasing production-and incidentally reducing inflation.
But we were not in a normal world, although we are reentering one now. Our world was not normal because up until now as the world's superpower and reserve currency we had a seemingly infinite capacity to borrow which we have clearly exploited with abandon but we have mindlessly squandered what we borrowed. We didn't have to pay the price for the borrowing and squandering until now because of our unique status.
Now comes the reckoning.
All those dollars will now diminish the economy, their absence from the private sector will reduce productivity and further increase inflation. Worse, if we are now at a point where we must either pay or go bankrupt, the whole system can break down.
These are the wages of the unbridled arrogance of the left.
