Afghanistan Will Not Be Joe Biden’s Only Disaster

The Iraq debacle. the fall of Saigon at the end of the Vietnam War, the Bay of Pigs, the failed invasion of Cuba … It is debatable exactly where the collapse of Afghanistan occupies on the list of US military and foreign policy disasters .

But one thing is already certain: What happened this week is a major setback that will undermine America’s credibility for years to come . However, now comes the real problem. This is not going to end here. The economy will be the next great catastrophe of the increasingly chaotic presidency of Joe Biden .

It may have been a mistake for the United States, and of course its ally the United Kingdom, to imagine that they could rebuild Afghanistan by force . Still, the chaotic departure from the country, which restored power to the Taliban in a matter of days, could hardly have been managed more ineptly. The markets will not care much what happens in Kabul in the next few days. Afghanistan is insignificant in the world economy.

And yet the chaotic pullout reveals a weak, ineffective, and incoherent White House . And, more importantly, President Biden’s economic policies are just as unreal.

Public spending skyrocketed
Just take a look at some of the evidence. Spending has been taken to unheard of levels. Right after taking office, the president launched a $ 1.9 trillion stimulus package , shipping free money to all American citizens, and fattening a deficit on debt that was already dangerously high under Donald Trump’s presidency .

Biden has deepened that trend with another trillion dollars – the trillions are seen to continue to add up very easily at a certain point – for infrastructure projects , some of which may be worth it, but many of which will be met with cost overruns. and delays that typically accompany these types of massive fiscal stimulus programs.

The Biden Administration is rushing to push green energy which, while perfectly valuable in itself, is likely to undermine America’s industrial base with rising costs, while also leading to a massive oversupply. of products such as batteries for electric cars, still very little spread in that country.

In his attempt to pay for it all with public money, and to score a few goals with the most left-wing faction of the Democratic Party, Biden has raised corporate taxes to levels far above those of most of his main competitors (he has put them in the same tax rate as France, but with fewer deductions) and has increased taxes on the rich.

His plan for a global minimum tax creates a straitjacket that will force tax rates to be raised around the world. Meanwhile, the most competitive US companies – the tech giants that have virtually alone sustained US growth for the past two decades – face a systematic regulatory attack justified only in the size of these multinationals, unable to prove that these companies actually threaten competition.

A hypertrophied state
There is a common theme in all of this. The Biden Administration has embarked on a race toward a larger and larger state, with more government control over all aspects of the economy and society. In itself, that was already worrying. A bigger state – who was going to say it – is usually not more efficient.

But the Afghanistan fiasco has illustrated that the people who run it are completely inept, with little intelligence, little planning, and no sign of leadership.

There will surely be a temporary economic awakening, as the country recovers from the Covid epidemic, and the money from the stimulus plan irrigates the economy. But Biden will cause another crisis in no time . It will not be as dramatic as the fall of Kabul, but it will prove to be just as damaging, or possibly even more so.

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