Lubbock Times

House Budget Committee Chairman Jodey Arrington (R-TX) recently penned an Op-Ed in the Washington Examiner, addressing concerns over the Biden Administration's fiscal policies. He argues that these policies are expanding government size and increasing the nation's fiscal burden to advance a political agenda.

Arrington draws parallels between today's "fiscal policy vigilantes" within the Biden administration and the "bond market vigilantes" of 1983, who triggered a sell-off due to fears of rising interest rates from reckless spending. He claims these modern vigilantes use unilateral actions to influence the 2024 election and expand government reach.

For instance, Arrington points out that after President Joe Biden's unsuccessful attempts to lower interest rates through the Federal Reserve, his Treasury Department announced plans to repurchase long-term debt. This move increased demand for securities, suppressed interest rate yields, and influenced borrowing costs across the economy. Similarly, Treasury Secretary Janet Yellen issued more short-term debt last fall, limiting longer-term bond supply and sparking a market rally.

However, Arrington notes that while these actions marginally reduce long-term interest rates, they ultimately increase taxpayer costs due to higher interest rates on shorter-term securities caused by an inverted yield curve.

The scope of these vigilantes extends beyond fiscal maneuvers. According to Arrington, open-border policies under Biden have flooded the economy with low-wage workers, doubling the number of illegal aliens in the U.S. since he took office. Many immigrants work legally or illegally, putting downward pressure on wages. The Congressional Budget Office (CBO) corroborates this view in a February 2024 report: “Additional foreign nationals are expected to work in sectors of the economy that pay relatively low wages, thus putting downward pressure on average wages.”

Arrington also criticizes what he describes as electoral giveaways aimed at key constituencies. He cites $160 billion spent on student loan forgiveness and $300 billion added through expanded food stamp payments via the "Thrifty Food Plan." In healthcare, changes in qualifications for subsidized Obamacare plans have cost $34 billion over ten years.

Moreover, limitations on states' abilities to perform Medicaid eligibility reviews have allowed potentially ineligible individuals to receive federal funds at a cost of $200 billion over ten years according to CBO estimates. Recently finalized regulations will extend Obamacare subsidies for Deferred Action for Childhood Arrivals recipients at an additional cost of $7 billion over ten years.

Arrington emphasizes that leveraging bureaucracy for political purposes is not new but insists that current efforts warrant immediate scrutiny due to their scale and impact on taxpayers.

"The Biden Administration’s approach to fiscal policy raises serious concerns about the trajectory of the U.S. economy and the burden it places on taxpayers," he writes. He concludes by calling for oversight of executive actions as essential for restoring fiscal accountability and safeguarding America's economic future.

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