‘Fog Math’ – Democrats’ ‘deficit-neutral’ social spending plan could cost more than $4 trillion – News Couple

‘Fog Math’ – Democrats’ ‘deficit-neutral’ social spending plan could cost more than $4 trillion

If you’re struggling to understand why, on his knees, Senator Joe Manchin rejected the massive social spending plan of his fellow progressives, Prepare for some cognitive dissonance.

Why doesn’t it go with it? After all, the smartest Democrats have declared the mega-spending fest “free,” right?

Citing provisions to offset spending, Biden has repeatedly claimed this The bill “will cost nothing”.

House Speaker Nancy Pelosi has refuted this argument with great confidence.

“It’s not about a dollar amount,” She told reporters.

“The dollar amount, the president said, is zero. This bill will be paid. “

As White House Chief of Staff Ron Klein unabashedly declared:

“Build Back Better’s net cost is zero.”

Sympathetic journalists picked up the mantra.

But – as you might suspect – this is all well-founded nonsense What Manchin called “budget tricks…and games of chance.” In fact, as CNBC’s Yan Moi pointed out this morning, it is “Mysterious Mathematics” Citing work based on Ben Wharton’s Budget Model (PWBM), this new deal costs more than $4.1 trillion and only $1.554 trillion is paid out.

“While Democrats claim to have cut the cost of their social spending package by more than half, they are using some obscure arithmetic…” Moy begins, noting, “The most obvious example is the scraping of SALT’s cap for the next five years, but they claim they are ‘paying’ for it by bringing it back for the next five years.”

In addition, Moi notes that various packages are at the heart of the bill, such as All Universal Pre-K expansion, Medicaid, and child tax credits expire after just a few years (6 years, 4 years, and 1 year, respectively), and of course, these “free” handouts become political grenades for Republican control when they expire.

Democrats are open to this plan, Moy notes, “Their strategy is to start as many new projects as possible and then build public support around them.”

As Milton Friedman infamously pointed out: “There is no such thing as a temporary government program.”

Crucially, the PWBM estimated the scenario where all the spending and revenue allocations in the Build Back Better Framework are permanent and the gap between spending and revenue is more than $2.5 trillion… which, the last time we checked, is not zero…

As Rich Lowry wrote in Politico recently, Attempting to redefine the cost of a billion-trillion bill as zero should rank among the most rude and obviously ridiculous attempts to change reality with a talking point ever tried. It’s a mind-boggling logic that would baffle Lewis Carroll at the height of his creative powers.

Well, if anything has been confirmed in the past 24 hours, it appears that the American public has finished believing in fairy tales and is quickly switching to the real world.

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