Yellen pitches Bidenomics in Beijing — making America a laughingstock

Imagine your family finds your cooking so disgusting that they refuse to eat it. In response, you decide to take the plate to your neighbor’s house.

This is exactly what the Biden administration is doing with its economic platform.

It’s no secret that Americans are tired of Bidennomics.

A recent Economist/YouGov poll revealed that 29% of voters are more concerned about the economy and inflation than any other issue.

Only 22% of black Americans, 13% of Hispanics and 18% of young Americans (all leading Biden candidates) believe they are better off economically than they were a year ago.

The verdict was this. Voters don’t like Joe’s cooking.

Rather than reflect on these numbers, Treasury Secretary Janet Yellen traveled to China this week and noted a range of benefits for local residents.

Although China rolled out the red carpet for Yellen in Beijing and Guangzhou, both China and the United States ultimately deemed her visit a failure.

When you look under the hood, it’s not hard to see why.

Whatever you think about China’s trade strategy, it is clear that it has been a huge success for them.

European carmakers fear a tsunami of new, cheap, and high-quality electric cars from China.

The US seems to feel the same way about Chinese EVs, having already imposed a 27.5% tariff on them.

But despite Western countries hating these products, they are flooding other world markets.

In 2022, China itself will account for 60% of EV purchases and supply 35% of global EV exports, up from 4.2% in 2018.

Despite negative headlines throughout 2023, China achieved its annual growth target of 5%.

In contrast to many Western countries, these countries achieved this economic growth with very low inflation.

The inflation rate at the end of 2023 was 3.4% in both the United States and Europe, and in China the inflation rate in the same year was -0.3%.

Given these numbers, most people would see Yellen heading to the Middle Kingdom to offer economic advice as a hard sell.

But Yellen was undaunted.

She told the Chinese that their trade practices were too aggressive and their products were too cheap.

While this may be true, another piece of advice she gave them went too far. Yellen should embrace Bidennomics, she said.

The US Treasury Secretary told the Chinese Communist Party that it should focus less on competitiveness and increase government spending to generate economic growth.

According to news reports, Yellen even tried to sell the Chinese on the stimulus package, or “stimulus” as it became known during the pandemic.

This is very strange advice, as Biden’s “stimulus” program is now widely considered to be the first in a series of policy failures that led to an explosion of inflation that made the president unpopular. .

Let’s put ourselves in the shoes of a Chinese person. Treasury Yellen created a cost-of-living crisis in America and now wants the Chinese to sign up to her funny money program.

It was only a decade ago that the so-called Washington Consensus encouraged other countries to embrace free market economics and improve their competitiveness.

Now, Yellen and his gang travel the world trying to sell the economical equivalent of magic beans.

There is no doubt that China has a problem with flooding Western markets with cheap products.

How to deal with this is a big question, but there is no doubt that the answer lies in rebuilding competitive industries in the West.

These countries are emerging from painful inflation and have had more than enough of Dr. Yellen’s magic money juice.

Attempting to peddle the same snake oil on the world stage is frankly embarrassing for the United States, which has prided itself on sound economic management.

The U.S. government is bipartisan and determined that it does not want to rely on China for cheap imports.

Policymakers are now focused on bringing jobs back to America.

While this is a laudable goal, there are better and worse ways to achieve it.

It’s not a good idea for the US Secretary of the Treasury to travel around the world and organize a carnival-like roadshow promoting the same stupid economic policies that have caused so much economic pain to average Americans.

If the Chinese signed up for Yellen’s regular dose of snake oil, it could cripple China’s economy and give the United States an upper hand on the world stage.

But it is safe to predict that China will “say no” to importing Bidennomics to Beijing.

Philip Pilkington is a macroeconomist and investment expert.