{"id":15691,"date":"2021-03-17T10:47:18","date_gmt":"2021-03-17T14:47:18","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=15691"},"modified":"2021-03-17T13:45:35","modified_gmt":"2021-03-17T17:45:35","slug":"biden-burn-rate-rescue-act","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2021\/03\/17\/biden-burn-rate-rescue-act\/","title":{"rendered":"Biden’s “Burn-Rate” Rescue Act"},"content":{"rendered":"
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American Institute for Economic Research, March 17, 2021<\/h3>\n

Biden\u2019s \u201cBurn-Rate\u201d Rescue Act<\/a><\/h1>\n<\/header>\n
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\"JamesJames Bovard<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

In the Biden era, federal competence has been defined down to mailing government checks to people who didn\u2019t earn them to buy votes for politicians who don\u2019t deserve them.<\/strong> A Washington Post <\/em>headline whooped that Biden\u2019s American Rescue Plan Act \u201cshowers money on Americans, sharply cutting poverty and favoring individuals over businesses.\u201d On Monday, President Biden boasted of \u201c100 million shots in people\u2019s arms\u201d and \u201c100 million checks<\/a> in people\u2019s pockets\u201d in the next ten days. The Biden administration is launching a nationwide \u201cHelp is Here\u201d victory tour promoting its achievements.<\/p>\n

The Rescue Act is based on blind faith in government spending \u2013 the revival of the \u201cMagic Bean School of Political Economy.\u201d<\/strong> When he signed the bill on Friday, Biden declared, \u201cWe have to spend this money<\/a> to make sure we have economic growth, unrelated to how much it\u2019s going to help people.\u201d The act\u2019s $1.9 trillion price tag is proof of its beneficence. Multi-trillion dollar budget deficits in the coming years supposedly put prosperity on automatic pilot.<\/p>\n

Inside the Beltway, the biggest fear is that federal agencies will not be able to throw tax dollars at citizens, businesses and local and state governments quickly enough. The Washington Post<\/em> frets that \u201cthe sheer volume of new programs threatens to swamp federal<\/a> agencies.\u201d This is the sixth federal Covid bailout since last Spring, and \u201ca slew of other efforts to help struggling<\/a> businesses\u2026 have been trapped in the federal bureaucracy.\u201d<\/p>\n

The Biden bill includes barrels of new handouts that Congress rushed into law without carefully examining. When federal benefits exceed what someone could earn on the job, they can become a penalty fee on work. University of Chicago economist Casey Mulligan estimated that the extra unemployment payments and other benefits in the Biden bill could result in up to eight million fewer<\/a> Americans being employed later this year. Nobody in D.C. apparently recalls the 2016 Obama White House report warning that joblessness is linked \u201cto worse economic prospects in the future, lower overall well-being and happiness, and higher mortality<\/a>, as well as negative consequences for families and communities.\u201d But collateral damage doesn\u2019t matter as long as politicians get applause and campaign contributions for programs that wreak economic havoc with perverse incentives.<\/p>\n

In his televised address last Thursday, Biden promised, \u201cI\u2019m using every power<\/a> I have as the president of the United States to put us on a war footing.\u201d Unfortunately, Biden\u2019s rescue act combines two features from America\u2019s disastrous post-9\/11 wars.<\/p>\n

As part of its surge in Afghanistan, the Obama administration sought to spend tax dollars as quickly as possible to create the appearance of prosperity. As the Christian Science Monitor<\/em> noted in 2010, the U.S. Agency for International Development (USAID) \u201ccreated an atmosphere of frantic urgency<\/a> about the \u2018burn rate\u2019 \u2013 a measure of how quickly money is spent. Emphasis gets put on spending fast to make room for the next batch from Congress.\u201d The Washington Post<\/em> noted in 2019, \u201cMany aid workers blamed Congress for what they saw as a mindless rush<\/a> to spend.\u201d John Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR), lambasted a system where it seemed that \u201conly those who can shove the money<\/a> out the door or meet the required \u2018burn rate\u2019 are to be promoted and rewarded.\u201d The \u201cburn rate\u201d produced endless absurdities in Afghanistan, including collapsing schools, impassable roads, failed electrification projects, and nonexistent health clinics.<\/p>\n

Biden\u2019s relief package parallels another ill-fated post-9\/11 policy. Shortly after the U.S. invaded Iraq in 2003, pallets stacked high with newly-printed $100 bills were flown into Baghdad. U.S. military officers handed bundles of cash to local residents to buy influence and undermine resistance to the U.S. occupation. The \u201cMoney as a Weapon System\u201d (MAAWS) program scattered $10 billion with little or no oversight. The handouts were valuable for \u201cdemonstrating positive intent<\/a> or goodwill\u201d and helped \u201cgain access or influence<\/a>,\u201d according to a 2012 Pentagon analysis. Such payments came in especially handy after U.S. troops inadvertently killed children or sheep. MAAWS subsidized Bush administration boasting in Iraq and burnished Obama\u2019s Afghan proclamations. The Afghan version of MAAWS never even bothered to consider whether the projects it bankrolled were<\/a> effective.<\/p>\n

On the home front, politicians of both parties have long relied on MAAWS to buy votes or buttress their powe<\/strong>r. Last year, Trump made sure that the federal Covid checks Americans received had his signature. Democrats took control of the U.S. Senate thanks to Biden\u2019s promise that voters would receive $2,000 federal checks<\/a> if Democrats won the January runoff elections in Georgia.<\/p>\n

To stifle doubts that his Rescue program will become a prize boondoggle, Biden promises \u201cfastidious oversight<\/a> to make sure there\u2019s no waste or fraud.\u201d But honesty is the first casualty when federal agencies scramble to spend money as quickly as possible. Sopko warned in 2019 that thanks to the bureaucratic pressure for success in Afghanistan, \u201cWe have created an incentive to almost require people<\/a> to lie.\u201d \u201cPerformance metrics\u201d became bureaucratic amphetamines for pathological lying. The \u201cbiggest single project\u201d resulting from the U.S. government\u2019s vast spending may have been \u201cthe development of mass corruption<\/a>,\u201d according to former U.S. Ambassador to Afghanistan Ryan Crocker.\u201d<\/p>\n

Can Biden avoid the pitfalls that plagued U.S. interventions abroad and at home? On Monday, Biden denounced Trump\u2019s Covid relief program as \u201ca free-for-all for well-connected companies<\/a>\u201d but promised his program will be faultless. Regardless of Biden\u2019s intentions, even his media allies don\u2019t portray him as too smart to be conned. The Washington Post<\/em> touted Biden as \u201cthe ideal messenger for [Democrats\u2019] spending blitz\u201d because he is \u201ca septuagenarian<\/a> who spent four decades in Congress.\u201d<\/p>\n

Last week, Biden declared, \u201cWe have to continue to build confidence<\/a> in the American people that their government can function for them and deliver.\u201d But Biden doesn\u2019t admit that he and congressional Democrats are distributing Covid relief payments in response to the catastrophic lockdowns, imposed by mostly Democratic governors, that ravaged prosperity without stopping the pandemic. Biden\u2019s administration is also providing intellectual ammunition to teachers\u2019 unions and others who keep children locked out of schools, one of the greatest continuing disruptions from Covid-19. Biden sometimes seems clueless about the limits of his authority, as indicated by his bizarre specifications last week on how he might permit Americans to gather in \u201csmall groups\u201d in backyards to celebrate the Fourth of July. There will be no honest assessment of the failure of federal, state, and local responses to Covid-19 from the Biden team.<\/p>\n

Can politicians convert the big checks they send voters into a blank check for additional power for themselves? Biden<\/strong> recently told congressional Democrats that \u201cAmericans are in lockstep<\/a> on each major element\u201d of his rescue act. It is unclear whether Biden actually believes his support is that broad. Regardless, as a top USAID official admitted regarding Afghanistan, \u201cWe had no legitimacy if we weren\u2019t flooding the area<\/a> with cash.\u201d And when the U.S. money gushers ran out, the Taliban returned and took control.<\/p>\n

Children are taught to distrust adult strangers who loiter around playgrounds and offer them candy. But many adults fail to recognize the same peril when politicians promise them something for nothing \u2013 or merely for their vote.<\/strong> The Supreme Court warned in 1971, \u201cThe history of government grants of a continuing cash subsidy indicates that such programs have almost always been accompanied by varying measures of control and surveillance<\/a>.\u201d The only certainty is that the ultimate bill for the ongoing deluge of federal benefits will be far higher in taxes and lost prosperity than politicians admit. Will Americans recognize the MAAWS peril to their own rights and liberties<\/strong>?<\/p>\n","protected":false},"excerpt":{"rendered":"

American Institute for Economic Research, March 17, 2021 Biden\u2019s \u201cBurn-Rate\u201d Rescue Act James Bovard In the Biden era, federal competence has been defined down to mailing government checks to people who didn\u2019t earn them to buy votes for politicians who don\u2019t deserve them. A Washington Post headline whooped that Biden\u2019s American Rescue Plan Act \u201cshowers […]<\/p>\n","protected":false},"author":1,"featured_media":15696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[42,2124,415,2422,2735,2349,82,36,27,2732,2736,2731,38,2730,2737,2733,1260,24,2734],"class_list":["post-15691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-afghanistan","tag-biden","tag-boondoggle","tag-burn-rate","tag-casey-mulligan","tag-covid","tag-foreign-aid","tag-iraq","tag-lying","tag-maaws","tag-magic-bean-school-of-political-economy","tag-money-as-a-weapon-system","tag-obama","tag-rescue-act","tag-ryan-crocker","tag-septugenarian","tag-sopko","tag-supreme-court","tag-u-s-agency-for-international-development"],"yoast_head":"\nBiden's "Burn-Rate" Rescue Act - James Bovard<\/title>\n<meta name=\"description\" content=\"Biden's American Rescue Plan Act relies on burning tax dollars as quickly as possible - 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The Wall Street Journal called Bovard \"the roving inspector general of the modern state\" and Washington Post columnist George Will called him a \"one-man truth squad.\" His 1994 book, Lost Rights: The Destruction of American Liberty, received the Free Press Association\u2019s Mencken Award as Book of the Year. His Terrorism & Tyranny won the Lysander Spooner \"Best Book on Liberty in 2003\" award. He received the Thomas Szasz Award for Civil Liberties work, awarded by the Center for Independent Thought and the Freedom Fund Award from the Firearms Civil Rights Defense Fund of the National Rifle Association. Bovard\u2019s writings have been publicly denounced by FBI director Louis Freeh, the Secretary of Agriculture, the Secretary of Housing and Urban Development, the Postmaster General, and the chiefs of the U.S. International Trade Commission, the Drug Enforcement Administration, the Equal Employment Opportunity Commission, and the Federal Emergency Management Agency, as well as by many congressmen and other malcontents.","sameAs":["http:\/\/www.jimbovard.com","https:\/\/www.facebook.com\/jim.bovard","https:\/\/x.com\/jimbovard"],"url":"https:\/\/jimbovard.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/15691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/comments?post=15691"}],"version-history":[{"count":5,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/15691\/revisions"}],"predecessor-version":[{"id":15698,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/15691\/revisions\/15698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media\/15696"}],"wp:attachment":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media?parent=15691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/categories?post=15691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/tags?post=15691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}