https://www.manhattancontrarian.com/blog/2021-4-1-us-to-go-full-venezuela-on-economic-policy
It was in 1998 — a mere 23 years ago — that Hugo Chavez first got elected President of Venezuela. From the start, his program was explicitly one of vastly increased government spending, which was supposed to make the economy grow, reduce income inequality, eliminate poverty and bring about social justice. Chavez called the social programs his “Bolivarian missions.” Among some 30 or so such “missions,” big ones included blowout spending on education, subsidized food, subsidized housing and healthcare.
In the early years, things seemed to be going swimmingly, at least if you believed the official statistics put out by Chavez’s government. Not only was there supposedly steady and mostly rapid economic growth (often over 5% per year, particularly 2004-10), but they also regularly crowed about how the redistributionist spending had greatly reduced the rate of poverty. Then, starting around 2013, it all started to fall apart. Today, eight years later, it continues to fall apart. More details on that later.
Yesterday, the Biden White House put out what they call the “American Jobs Plan.” It’s $2.3 trillion of new government spending, on top of the $1.9 trillion just passed, and several trillion more to come, all on top of a $4 trillion or so annual level of baseline federal spending. Yes, it’s blowout government spending, on the usual issues pushed by advocacy groups, which supposedly will shortly achieve all the usual promises of the left: economic growth, increased economic fairness, and social justice. In other words, it’s the Venezuela economic program, blown up to U.S. scale and then tweaked a little here and there to buy off the squeaky wheels of the moment.
As I pointed out in a post on March 8 addressing the previous $1.9 trillion (“Could This Be The Very Worst Piece Of Legislation Ever?”), that bill was touted as “Covid-19 Relief,” but in fact only about 5% of the spending was for anything that could be called actual public health measures related to the pandemic. The rest was “a grand orgy of vote buying and giveaways to left-wing interest groups.” Following the same playbook, this $2.3 trillion monster calls itself an “infrastructure” plan:
