A new study on Biden’s tax, health-care, energy and regulation proposals predicts $6,500 less in median household income by 2030.
Joe Biden has shrewdly kept the campaign focus on Covid-19 and President Trump, which has helped him avoid having to talk much about his own policies. That’s especially true of his economic proposals, which a new study out Sunday from the Hoover Institution shows will have a damaging impact on growth, job creation and household income.
Mr. Biden often cites Moody’s , the credit-rating service, for saying his economic plan will yield faster growth and more jobs. “Wall Street,” he likes to say when he mentions Moody’s, as if that’s a conservative stamp of approval, even as he claims Mr. Trump is a captive of Wall Street.
But everyone knows most economists at today’s big financial institutions have a Keynesian bias that posits consumer demand and government spending as the main drivers of growth. That’s certainly true at Moody’s, whose chief economist is Mark Zandi, who in our view underestimates the impact of higher tax rates and regulation in his economic calculations. This isn’t a personal criticism, but a factual statement about his economic model.