boskin79_Kent Nishimura  Los Angeles Times via Getty Images_biden Kent Nishimura Los Angeles Times via Getty Images

The True Costs of Government Spending

While all politicians exaggerate, US President Joe Biden’s claim that his proposed $3.5 trillion spending package “costs zero dollars” rises to a higher plane, and Americans aren’t buying it. Even if the legislation was fully covered by tax increases, the costs for the economy would be significant.

STANFORD – US President Joe Biden insists that his $3.5 trillion ($5 trillion without the budget gimmicks) “human infrastructure” bill “costs zero dollars” – nothing, nil, nada. While every president makes foolish statements, this must be the most economically illiterate presidential utterance since Jimmy Carter’s demand that the US Federal Reserve lower interest rates in the midst of surging double-digit inflation. In Carter’s case, the result was a dollar crisis. What will come of the Biden administration’s foray into nonsense?

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