Home Economy ‘Build back better’ plan would build weaker economy | EDITORIAL

‘Build back better’ plan would build weaker economy | EDITORIAL

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There are decades of evidence that the federal government doesn’t spend money as efficiently as the private sector. Sadly, as President Joe Biden’s “Build Back Better” spending plan indicates, this realization seldom — if ever — stops reckless attempts to spend taxpayer money.

According to researchers using the Wharton Budget Model, the president’s plan will severely hamper future economic growth and reduce wage growth in the long term. Mr. Biden and congressional Democrats want to spend roughly $3.5 trillion over the next decade. This spending spree will be financed with enormous tax increases and borrowing up to $1.75 trillion. The budget model is a macroeconomic forecasting project based at the University of Pennsylvania.

The budget model finds this spending package would drop GDP by around 4 percent by 2050. That’s compared to the status quo. The drop would be caused by an estimated 6.1 percent reduction in private capital,…

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