Horowitz: McConnell’s ‘wartime’ COVID investments come home to roost



“Bidenflation” existed before he staggered into office on January 20, 2021. It was catalyzed when nearly every Republican supported the worst piece of legislation in American history on March 25, 2020, which set off a cascade of several other pieces of legislation underwriting, incentivizing, and consummating COVID lockdowns. The chief cheerleader of the bill at the time was none other than Senate Majority Leader Mitch McConnell, the man whom Republicans are pining to see become floor leader once again next year to solve the inflation crisis. But in order to solve it, don’t we need to first acknowledge the cause and who was responsible?

Last week, Sen. Mitch McConnell tossed out the same tired bromide about Biden causing inflation with his $1.9 trillion reckless spending “on party line” last year.

\u201cOne clear reason we're suffering from 40-year high inflation: The $1.9 trillion reckless spending this all-Democratic government passed on a party-line basis last year. \n\nNow, after spending us into inflation, they want to tax us into a recession.\u201d
— Leader McConnell (@Leader McConnell) 1657833072

What he forgets to tell you is that the bulk of the unfathomable levels of spending came from the worst legislation in American history: the $2.2 trillion COVID lockdown/Big Pharma bill that he ardently pushed for in March 2020, which at the time, represented half of the entire federal budget! That bill led to a cascading effect of unconscionable spending and tyranny that, between Congress and the Federal Reserve, unleashed more than $10 trillion on the economy.

At the time, McConnell praised it as “a wartime level of investment into our nation.” “The men and women of the greatest country on Earth are going to defeat this coronavirus and reclaim our future," said Majority Leader Mitch McConnell when announcing the deal that morning. "The Senate's going to make sure that they have the ammunition they need to do it."

Except, it wasn’t a wartime investment in production, it was an investment in lockdown, paying people not to work, imposing tyranny, and inducing a vicious cycle of Big Pharma failure that perpetuated both the pandemic and the economic misery. Milton Friedman famously described inflation as the result of "too much money chasing too few goods.” Never was there a time in history when Congress voted to spend so much money to simultaneously shut down production and make goods scarce while lining the pockets of individuals and corporations with endless cash. As the San Francisco Federal Reserve Bank conceded in March when groping in the dark for the culprit of the history inflation, “In seeking an explanation, we turn to the combination of direct fiscal support introduced to counteract the economic devastation caused by the pandemic."

Because of the terrible COVID policies Republicans still refuse to acknowledge, the federal reserve went on such a bond buying spree that it literally increased the money supply by 40% and did this all while the same policies were shrinking output.

Hence, a lot of money suddenly chasing diminishing quantities of products.

What’s worse, these same Republicans then immediately jumped on the bandwagon of the “next current thing” by criticizing Biden for not giving enough money to Ukraine. It wasn’t just the over $50 billion we sent there without an understanding of the outcome we hoped to achieve, but it perpetuated a war and sanctions that are crushing supply chains, which further exacerbates the inflation. McConnell famously said in May that “the most important thing going on in the world right now is the war in Ukraine.”

Hence, McConnell carping about inflation now is akin to the arsonist lamenting the heat of the fire and dressing up as the firefighter. Obviously, Biden has done things on the regulatory side and through exacerbating the war on fossil fuels that aggravated this crisis, particularly as it relates to energy. But the foundation for this crisis was set in stone with the bills shepherded by McConnell when he was in the majority. And that date was not January 2021, but March 2020, when Republicans controlled two of the three branches.



Since March 2020, the gross debt has increased by over $7 trillion. It took from George Washington’s day to the first half of 2004 to accrue our first $7 trillion in debt. What is particularly jarring is that $6.5 trillion of that increase is composed of the “public debt,” not the “intragovernmental debt,” which we supposedly owe ourselves (most prominently the Social Security Trust Fund).

Which brings us back to the GOP senators and congressmen. Which programs would they cut or devolve to the state? What exactly would they do to combat the inflation and what systemic governmental reforms will they push that would address the enormity of the crisis? Combatting “waste, fraud, and abuse” or eliminating “pork” won’t cut it.

At least in 2010 during the Tea Party era, they claimed to oppose spending and then betrayed their promise. Today, they are not even acknowledging the issue of our time that caused the inflation. As such, how are we to believe anything would change on the other side of an auspicious election result?

'They're spending crazy': Levin slams Congress' bloated budget deal

Tuesday night on the radio, LevinTV host Mark Levin lambasted the massive spending package passed by the House of Representatives earlier that day.

Levin played audio of Rep. Chip Roy, R-Texas, criticizing the bill from the House floor ahead of the vote that day. In his remarks, Roy pointed out the spending deal's massive size, noted that its details were dropped on legislators just a day before the vote, and called on President Trump to veto it.

"I'm telling you, they're spending crazy, and they're not just spending crazy, they're making deals," Levin remarked of the spending package.

"This is a massive, trillion-dollar omnibus bill, and I'm told it has veto-proof majorities," Levin concluded. "You see, you get more votes voting for stuff than voting against stuff."

Listen:

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Majority of Senate Republicans vote to send budget 'monstrosity' to President Trump's desk

A budget agreement that suspends the debt ceiling for two years, raises federal spending limits, and sets America up to add another $2 trillion to the national debt is on its way to President Donald Trump for signature after passing the Senate by a vote of 67-28.

A final vote on the bill was originally expected on Wednesday, but was pushed to Thursday afternoon amid questions about whether or not Senate Majority Leader Mitch McConnell's leadership team would be able to get more than half of Senate Republicans behind the bill. House Republicans voted against the measure by a ratio of 2 to 1 the week before.

Twenty-three Republicans voted against the bill, fewer than half of the 53-member conference. Of the 67 who voted in favor, therefore, only 30 were Republicans, meaning that the bill passed with more Democrat support.

Five Democrats voted against the measure: John Tester, Mont.; Joe Manchin, W.V.; Amy Klobuchar, Minn.; Michael Bennet, Colo.; and Tom Carper, Md.

In a Tuesday statement against the legislation, Sen. Mike Lee, R-Utah, said the legislation "isn’t only a betrayal of conservatism but an example of government at its worst," citing the fact that the bill was written behind closed doors.

“This budget deal is yet another missed opportunity to rein in excessive government spending," Sen. Ted Cruz, R-Texas, said after the vote. "Instead of running up bills we can’t pay, we should be fighting for the American people’s commonsense priorities such as securing our southern border, cutting taxes, and reducing regulations.”

Supporters of the deal, however, have touted it as a compromise reached by a divided government to avoid a potential default or shutdown.

"One of our most important jobs as members of Congress is delivering the resources to fund our government, provide certainty and support for our military and our veterans, and ensure economic stability for American families," Sen. Shelley Moore-Capito, R-W.V., said in a statement. This agreement puts us on the path to accomplish all of those goals."

Before the final vote on Thursday, the Senate rejected an amendment from Sen. Rand Paul, R-Ky., that would have raised the debt ceiling in exchange for spending cuts by a vote of 23-70. Paul announced the vote the day before in a floor speech where he lambasted both parties for putting the budget deal together and called the legislation "a monstrosity" and "an abomination." During the Wednesday speech, he also decried Republicans who he predicted would vote for his bill as political cover before supporting final passage of the agreement.

The vote was one of the last few remaining items of Senate business to wrap up before members of the upper chamber depart for this year's five-week summer break.

Editor's note: This article has been updated to correct "more than half" to "fewer than half" in the third paragraph.

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Why did Republican leaders sign on to a spending deal this bloated this early?

Congress has two whole months left until the government shutdown deadline, so why in the world did Republicans agree to a budget deal that sets us up to grow the national debt by another $2 trillion over two years?

As explained in Friday morning's Capitol Hill Brief email:

The lower chamber passed the budget agreement — which suspends the debt ceiling and busts the spending caps — yesterday evening 284-149. However, despite the president’s support and House leadership’s backing, twice as many Republicans voted against the bill as for it. After final passage, Rep. Thomas Massie, R-Ky., invoked a House rule to force a vote to change the title of the bill to "A Bill to Kick the Can Down the Road, and for Other Purposes." The amendment failed but got 47 votes total.

The House then left for a six-week recess, with votes not expected again until September 9. Now the budget bill heads to the Senate, which faces more pressure to pass it as-is, since any changes would require recalling the House or waiting until representatives get back to town.

So to those of you thinking that it seems a little early to be having a fight about the budget, you're not far off. It's important to keep in mind this isn't an appropriations bill, which is expected in September; this is just the agreement to remove Congress' spending constraints. Congress still has to pass 12 appropriations bills before October, which leaves two whole months on the possible shutdown clock.

So what exactly was the impetus for Republicans to sign on to this spending deal this early? The fact that the federal government is spending so much taxpayer money that it ran the risk of running into mandatory cuts under the Budget Control Act. Secretary of the Treasury Steve Mnuchin warned that we might have hit the debt ceiling by early September, in fact.

So instead of finding a way to agree on what part of the bloated federal government to cut back on, negotiators went behind closed doors and cooked up a deal to get rid of the constraints and spend a lot more taxpayer money.

Yes, in true Washington, D.C. fashion, both parties saw a spending problem and came together to "solve" it with more spending. The House passed it, and then they adjourned for six weeks.

And now it's all set to become law and, as Daniel Horowitz writes, completely repeal the Tea Party movement's fiscal legacy.

Indeed, as it heads to the Senate, it appears that the only things likely to stop it are some kind of last-ditch effort in the upper chamber or President Trump listening to the pushback from the Right on this and sending the negotiators back to the drawing board. After all, there's still time to do it.

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What election? Republicans have already handed Congress to the Democrats

We hear a lot of talk about Russians interfering with the 2016 election results, but really, Republicans did the job for them.

What if I had told you during the 2016 elections that Republicans would pass a short-term budget bill funding the government and all its vices in a way that is absolutely indistinguishable from a bill Democrats would pass, merge it with a long-term bill funding the worst aspects of immigration, abortion, everything we hate about the Department of Education and Obamacare, massively increase spending, and then pair it with a bill funding the troops? What if I had told you we were about to lose the next election as severely as the 1974 “Watergate” election because Republicans were busy accomplishing the other side’s goals?

It’s bad enough that the Senate passed a “minibus” funding the Departments of Health and Human Services (HHS), Labor, and Education, attached to defense spending. It’s bad enough that Republicans planned on passing a stopgap continuing resolution (CR) locking in last year’s spending increase through December 7 without addressing the border crisis. Now they have introduced a final bill merging the two.

With every budget bill, Republicans find a way to up the ante on their perfidy and give Democrats more than they could get when they were in control. In 2015, when Republicans didn’t even control the veto pen, Chuck Schumer expressed shock that the GOP Senate gave away the farm. “If you would’ve told me this year that we’d be standing here celebrating the passage of an omnibus bill, with no poison pill riders, at higher [spending] levels above sequesters than even the president requested, I wouldn’t have believed it, but here we are,” said the Democrat senator in December 2015. “Almost anything the Republican leadership in the Senate achieved this year, they achieved on Democratic terms. … Democrats had an amazingly good year.”

And here we are today, with Republicans in control of the White House as well, and spending is several hundred billion dollars more.

A Republican Party that was committed to its platform would have passed a stand-alone defense and homeland security bill long ago with conservative priorities. Instead, Republicans sabotaged conservatives by holding defense spending hostage for a Democrat bill that fully funds the asylum invasion but not border security.

The HHS-Labor-Education component appropriates $178 billion for fiscal year 2019, $10.7 billion more than Trump requested. HHS would receive a 2.6 percent increase over the current record levels I decried in the March bill for fiscal year 2018. The bill also contains $286 million for Title X abortion funding, as well as $100 million for Obama’s “teen pregnancy prevention program.” They also removed a provision from the House version allowing adoption agencies the discretion not to place children in homes without a father and mother.

Rather than barring HHS from settling phony “unaccompanied” minors fueling the MS-13 and drug crisis, the bill requires HHS to “develop a strategy” for “reunifying” the invaders who self-separate from their kids to empower the drug cartels and endanger our country. We now have a Congress of, by, and for foreign invaders. It’s surreal. Out of 25 ideas that I proposed to protect Americans from the emergency of illegal immigration and all its cascading effects – from gangs and drugs to identity theft, crime, and the strain on schools – not a single conservative provision was put into the bill.

The increase in spending was totally gratuitous, because agencies were already scrambling to binge-spend an extra $140 billion they never anticipated at the start of the last fiscal year. Republicans agreed to massively increase spending halfway through the fiscal year in February and March after agencies already budgeted for much less.

With just 11 months of data from this fiscal year, we now know the deficit is $900 billion, already $233 billion more than the 12 months of fiscal year 2017. And remember, last year, which was the first year of full GOP control, already saw a $128 billion increase in spending over Obama’s final year. You will hear the media blame the tax cuts for most of the deficit, but the reality is that, for August, revenues were down $7 billion compared to August 2017, while outlays were up $100 billion! Interest on the debt is soaring. This is simply astounding given the condition of the economy.

Think about this for a moment. Could you imagine going back to 1996, when even moderate Republicans thought government was too big and our social values were decrepit? We would now give anything to go back to those levels of spending and policy values on health care and education. The Department of Education now costs $71 billion in discretionary spending alone, compared to $24 billion in 1996. HHS was $33 billion compared to $90.3 billion today, in discretionary spending alone. Back in 1996, the total cost of HHS, including the entitlement and welfare programs, was $333 billion. Now it’s well over $1.2 trillion.

That was when the entire federal budget was $1.5 trillion; now it’s $4.2 trillion. That was when we passed welfare reform. That was when we passed a massive immigration enforcement bill. And yes, that was without controlling the White House.

Now we have all three branches, and yet the Republicans are light-years to the left of Democrats of the ’90s.

At its core, this is the mentality that GOP voters despised when they voted for Trump, yet he has signed every budget betrayal and has declined to threaten a veto of this bill every day, even though he promised he’d never get owned in another budget bill and saw this coming a mile away.

At some point, phony conservative organizations and commentators need to step out of the soap opera and ask the question: All this for what? Perhaps a Watergate-style loss in November – all so we can die on left-wing policy hills – is what it will take for conservatives in this industry to finally wake up and reassert control over this party or start and new one. American citizens or legal immigrants who aren’t on the dole, don’t plan on getting a sex change operation or abortion, just want a fair chance in a free market, and want safety from external threats just don’t matter to either party. Faced with the current disquiet and a lack of alternatives, many voters will simply choose the party that is currently out of power to lodge their protest, even though Democrats are really in power in all but name only.

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