Wednesday, November 2, 2022

Bidenomics: US turning into France

 You know the President's in trouble when the left-leaning Economist goes off on him:

Joe Biden’s colossal economic stimulus in early 2021 first set inflation on its feverish trajectory, before Russia’s invasion of Ukraine sent prices spiralling further. Voters may soon punish him for it, among other perceived excesses....
Mr Biden has signed three landmark bills, on infrastructure, semiconductors and the environment, which together contain plans to spend $1.7trn. With his executive actions, these amount to full-blown industrial policy. The result is unlike anything seen since Congress threw its weight behind America’s car- and chipmakers in the 1980s. The government will dole out $180bn in subsidies and tax credits to local firms over the next five years. At 0.7% of gdp, that is more than supposedly dirigiste France.
Dirigisme: an approach to economic development emphasizing the positive role of state intervention. The term dirigisme is derived from the French word diriger (“to direct”), which signifies the control of economic activity by the state.

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