"Bidenomics is a heady brew. The Democrats’ $7.9 trillion blast of extra spending is a step beyond Roosevelt’s New Deal. It mimics the Keynesian expansion of the Second World War and consciously aims to run the economy at red-hot speeds of growth.
If enacted in full, it is large enough to lift the US economy out of the zero-rate deflationary trap of the last decade and entirely reshape the social and financial landscape.
The stimulus will be corralled inside the closed US economy by Joe Biden’s protectionist “Buy America” policies, his industrial strategy, and his carbon border tax (i.e. disguised tariffs against China). This limits leakage.
It is a laboratory of sorts for a post-globalisation experiment in what used to be called “reflation in one country” – before the free flow of goods and capital emasculated sovereign governments.
“It’s quite likely that, just as in World War II, when we push down on the economic accelerator, we will find that we have been running on one cylinder up until now,” said the Roosevelt Institute, now advisors to the Biden campaign.
This is why Moody’s Analytics estimates that Bidenomics accompanied by a Democrat clean sweep of Congress would lift American GDP by an extra 4.8pc, add an extra seven million jobs, and raise per capita income by an extra $4,800 over the next four years, compared to a clean sweep by Donald Trump. Economic growth would rocket to 7.7pc in 2022." Telegraph