From: allin
The Biden Administration has faced criticism regarding its impact on the business environment, with observations noting increased difficulties for companies across various sectors [01:41:42].
Key Business Challenges Identified
- Regulatory Uncertainty: Businesses, particularly in the crypto sector, desire a clear regulatory framework but have not received one [01:49:00].
- Stifled Mergers & Acquisitions (M&A): There has been a significant reduction in M&A activity within the tech industry [01:56:00].
- High Interest Rates and Credit Crunch: Real estate businesses are finding it difficult to secure loans due to soaring interest rates and a credit crunch [02:00:00].
- Overall Difficulty in Doing Business: A common theme heard at a fundraiser was the pervasive challenge in conducting business operations [02:09:00].
Proposed Solutions and Contrasting Policies
According to former President Trump, the primary actions to stimulate the economy would be addressing “regulation, regulation, and taxes” [02:25:00].
Taxes and Regulation
During the Trump administration, business taxes were reduced from approximately 40-45% (including state and city taxes) to 21% [02:36:00]. This tax cut, along with significant regulation reductions, was credited with enabling businesses to build, invest, and repatriate hundreds of billions of dollars from overseas, such as Apple’s repatriation of funds [03:41:00]. The regulation cuts were considered even more impactful than the tax cuts by many corporate leaders [03:00:00].
Economic Growth and Fiscal Responsibility
Under the Biden Administration, the national debt has increased significantly, with trillions borrowed for COVID-19 relief not always used for its stated purpose, contributing to inflation [13:35:00]. Energy policies and overall spending by the administration are also cited as major causes of inflation [14:30:00]. In contrast, the previous administration was focused on growing the economy and was preparing to pay off debt before the COVID-19 pandemic necessitated significant spending to avert a depression [13:35:00].
A strategy to control spending involves leveraging impoundment authority and returning unused funds to the government [15:07:00]. Proposals also include returning education control and funding to the states, reducing the federal Department of Education to a minimal oversight role [16:06:00]. Similarly, environmental regulation could be managed more by states to reduce bureaucracy [17:26:00].
Energy and AI
The demand for electricity from Artificial Intelligence (AI) development is projected to be double or triple current levels, requiring robust energy sources [18:22:00]. Windmills are deemed insufficient to meet this demand or maintain competitiveness against countries like China [18:43:00]. The US needs to return to energy production, including “clean coal” and potentially nuclear power, but with more cost-effective and efficient construction methods like those seen in France, which builds smaller, standardized nuclear plants [17:47:00]. China is building 150 nuclear reactors at a significantly lower cost per kilowatt compared to the US [18:55:00].
Tariffs and Trade
Larry Summers suggested that tax cuts combined with tariffs could lead to “the mother of all stagflation” [08:32:00]. However, tariffs are viewed as beneficial for both economic gain and political leverage [09:25:00]. Reciprocal trade is advocated, where if countries like China or the European Union impose high tariffs on US products (e.g., 100% on cars), the US should apply equivalent tariffs [10:56:00]. The current administration’s approach to tariffs on Chinese electric cars only is questioned, as it’s believed that electric car production will ultimately shift to China [11:20:00].
Border Security and Workforce
The previous administration constructed hundreds of miles of border wall, which significantly reduced illegal crossings and was supported by Mexico sending troops [40:21:00]. The current administration, by repealing executive orders and leaving gaps in the wall, is seen as advocating for open borders, leading to an “invasion” of the country including criminals and terrorists [41:54:00].
Despite concerns about overall immigration, there is strong support for allowing high-skilled workers, particularly those graduating from US colleges (including junior colleges, Harvard, and MIT), to automatically receive green cards. This policy would retain talent that might otherwise start successful companies in other countries like India or China, thereby boosting the US economy and creating jobs [44:19:00]. This is seen as a way to enhance productivity and recruit the “best and brightest” globally [52:23:00].
Impact on Quality of Life
The rise in crime, particularly in Democrat-run cities, is also impacting the business environment. Mass shoplifting events and the need for stores to secure merchandise behind bars and glass are cited as new phenomena making it difficult to conduct business [06:05:00]. Policies like “no cash bail” and limits on theft value for arrest contribute to this issue [08:03:00].
Foreign Policy and Economic Impact
The decline in the dollar’s global standing, with countries like Russia, China, Iran, and potentially Saudi Arabia moving away from the dollar in international transactions, is highlighted as a significant economic risk equivalent to losing a war [09:56:00].
The war in Ukraine, which the speaker attributes to the Biden Administration’s rhetoric about Ukraine joining NATO and the rise in oil prices, has further economic implications [21:39:00]. The Middle East conflict, specifically the October 7th attack, is linked to Iran’s increased financial strength under the current administration, contrasting with its weakened state due to sanctions under the previous one [25:15:00]. This directly impacts US China relations and business impact.
Overturning Roe v. Wade
The overturning of Roe v. Wade was a promised action delivered by appointing three Supreme Court justices [28:21:00]. This decision returned the issue of abortion legality to individual states, where citizens are now voting on the matter [29:31:00]. The speaker does not support a national ban on abortion, preferring it to remain a state issue, with exceptions for rape, incest, and the life of the mother [31:05:00].
COVID-19 Response and Government Accountability
The COVID-19 pandemic caused significant economic damage, requiring trillions in spending to avoid a 1929-like depression [32:58:00]. The previous administration halted funding to China, which was linked to gain-of-function research, based on the principle of not paying money to China [33:14:00]. Concerns were raised about government transparency and the influence of a “deep state” [37:37:00]. This includes actions within the FBI, and withdrawals from international agreements like the World Health Organization and the Paris Accord due to perceived unfairness and cost to the US [38:20:00]. The Biden Administrations AI regulation executive order subsequently rejoined these organizations on less favorable terms [36:54:00].
Presidential Debates and Public Perception
Regarding Biden’s cognitive health, the speaker avoids a direct assessment but expresses a long-standing view that Biden is not a “smart person” [48:54:00]. Despite this, the speaker acknowledges Biden’s debate performance against Paul Ryan, indicating that he should not be underestimated [49:16:00].