September 28, 2022

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Joe Biden proposed a $ 6 trillion budget to “revive” the US economy

Joe Biden, President of the United States (Photo: REUTERS / Kevin Lamarck)

Joe Biden on Friday proposed a $ 6 trillion budget to “rediscover” the US economy and compete with China. It, if approved by Congress, would pave the way for the country to register debt.

“We must seize the opportunity to rediscover and rebuild a new American economy that invests in the promise and energy of every American.”The President of the United States said in a message to Congress.

The COVID-19 epidemic engulfed the country Its worst economic crisis since 1946, And the world’s largest economy though Begins to recover, Is still far from pre-infectious.

“The United States simply cannot go back to where it was before the epidemic and recession. Structural weaknesses and the imbalances of the old economy still exist.”Warned the US president.

In the United States, the annual budget proposed by the President This is more than just a wishlist or message about your preferences. It is the legislators who ultimately determine the amount and purpose of the money, one for the current Congress Very narrow democratic majority.

Opposition Republicans are wary of giving prominence to the federal government. Supporters of Biden also warn that the US economy is poised to recover from the effects of the epidemic. Runs Risk of falling into the cycle of inflation.

However, this massive project marks the White House’s determination to put concrete figures into Biden’s campaign to reconsider the relationship between the government and the private sector. An existential rivalry with China.

Biden's plan must be approved by US Congress (Photo: REUTERS / Kevin Lamarck)
Biden’s plan must be approved by US Congress (Photo: REUTERS / Kevin Lamarck)

According to Biden’s plan, The federal pipeline will release about $ 6 trillion by 2022, and the increase will gradually rise to $ 8.2 trillion by 2031.

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All of these costs will increase debt, It is now Refers to more than 100% of GDP. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031.

The Democrats have clarified the $ 6 trillion goal: the bulk of it will go to a bill Infrastructure It was originally proposed at $ 2.3 trillion, but it has been reduced to $ 1.7 trillion in negotiations with Congress. Another $ 1.8 trillion will go to increase government funding for education and social services As part of creating a better workforce in the 21st century.

The overall goal, Biden argued, is to do Grow up to the American middle class, As well as placing the United States “To competeWith his rivals.

The proposed budget is released before Memorial Day long weekend and a one-week break with Congress.

Introducing it now will slow you down on Capitol Hill, Many Democrats want Biden to override his control over Congress Transforming law, But Republicans are playing hard Try to block most of what the president puts forward.

Cost priorities are only one part of the division between the two parties. Republicans, for example, are almost unanimous in opposing Biden’s broad definition of infrastructure Includes green energy and community projects. There is even less agreement on how to pay for these projects.

Biden wants Republicans to raise money by ending a corporate tax cut His predecessor passed under the rule of Donald Trump.

Biden tries "Find again" American Economy (Photo: REUTERS / Rebecca Cook)
Biden seeks to “rediscover” the US economy (Photo: REUTERS / Rebecca Cook)

Even the president He wants to go seriously to follow the tax loopholes used by big and super-million dollar companies. In contrast, Republicans refuse to accept that mechanism, claiming that they can pay for their own moderate infrastructure spending by redistributing money not already spent on the budget.

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Despite the stagnation and the sheer size of Biden’s mega-budget, The White House still has a potential ace up its sleeve.

Generally, Biden needs at least ten Republicans Can achieve the required majority in the Senate, Today is equally divided between the two parties, which is a difficult task.

However, if the Democrats are unanimous, that too is not guaranteed, they can Execute the budget through a quick process called reconciliation, which requires fewer votes.

With information from AFP

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