January 16, 2022

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Biden wants to ‘rebuild’ the $ 6 trillion economy in the 2022 budget

US President Joe Biden has outlined his 2022 budget for the country’s economy. – Louis M. Alvarez / AP / SIPA

It makes green bags! Joe Biden He released his first draft budget for 2022 on Friday. Education, health, infrastructure and climate change are at the center of his priorities, as he promised during his presidential campaign and put forward key lines in early April. Seriously opposes
Donald Trump.

“We must seize the opportunity to rediscover and rebuild a new American economy that invests in the promise and energy of every American,” the U.S. president said in a message to Congress. A substantial ambition is possible, even on a substantial budget. $ 6,000 billion, the U.S. president estimates. Spending it will raise the country’s debt to unprecedented levels.

Two investment projects to create millions of jobs

The Govit-19 It has plunged the United States into its worst economic crisis since the 1930s, while the first economy is recovering, which is still far from pre-epidemic levels. “Despite all the hard progress our country has made in recent months, the United States will not be able to return to where it was before the epidemic and the economic downturn. There are structural weaknesses and imbalances in the world. The old economy is still in place,” the president warned.

To do this, it calculates two investment plans included in the plan, and it could create millions of jobs: the first “American households” with $ 1,800 billion in 10 years, another related to infrastructure. Bitter talks between the administration and the opposition. Republican senators are proposing $ 928 billion over eight years, while Democrats have agreed to plan a $ 600 billion plan against $ 1.700 billion.

Surpassing China

The White House is trying to save elected representatives in Congress, whether they will vote on the draft budget or not. Joe Biden can certainly count on a democratic majority in the House of Representatives and the Senate. But they are so narrow, especially in the upper room, that he can not bear any deviation.

These plans, aimed at building a “new American economy,” must begin with China and allow the United States to “surpass its rivals.” Because if there is one sector that the president is following in the footsteps of Donald Trump, it is trade competition with the federal empire.

Increase in security budget

While the federal government had to spend more in the sky to deal with the Govt-19 epidemic, the total projected spending for fiscal 2022 is $ 6 trillion from 2020 and 2021. By comparison, the 2020 budget proposed by Donald Trump in 2019 covers about $ 7 4.7 trillion.

Joe Biden wants to significantly increase the amount set aside to invest in education, health and infrastructure. The defense budget increases slightly to $ 756 billion.

Taxes for the rich will rise

But all of these costs are risks of increasing debt, which now accounts for more than 100% of GDP. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031. As promised, Joe Biden wants to raise taxes for rich Americans and big business, which will more than double in the next ten years. “Over time, the savings from these reforms will outweigh the cost of investment,” the president said, promising to “reduce” large and growing “gains and annual deficits by the end of the ten-year budget period. Every year thereafter.”

But he will have to use the treasures of inspiration to persuade Republicans to vote in favor of this reform that will unravel the tax cuts implemented by Donald Trump.

Do not increase the country’s debt

Management wants to finance its budget with historically low interest rates without increasing the country’s debt with high interest to repay. The White House budget usually marks the beginning of a never-ending process that will lead to government funding.

If there is a disagreement between the two sides on this bill, the risk is that the federal administration will be forced to close, without funding: this is a “shutdown”.

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