Joe Biden proposed $ 6 trillion budget to ‘reinvent’ the US economy

Joe Biden on Friday proposed $ 6 trillion budget to “reinvent” the US economy and compete with China which, if approved by Congress, will put the country on track to record debt.

“We must seize the moment to reinvent and build a new American economy that invests in the promise and potential of every American.”the President of the United States said in a message to Congress.

The COVID-19 pandemic has plunged the country into its worst economic crisis since 1946, and although the world’s largest economy start to recover, is still far from pre-pandemic levels.

“The United States simply cannot afford to go back to where it was before the pandemic and economic recession, with the structural weaknesses and inequalities of the old economy still in place.”warned the American head of state.

In the United States, the annual budget proposed by the President it’s more of a wish list or a message about your priorities than anything else. It is legislators who ultimately decide how much and where the money is going, and the current Congress has a very narrow democratic majority.

Opposition Republicans are reluctant to give the central government an important place. Even some of Biden’s supporters warn that the US economy, now poised to recover from the effects of the pandemic, short the risk of falling into an inflationary spiral.

However, the massive plan indicates the White House’s determination to give concrete numbers to the Biden campaign to rethink the relationship between government and the private sector, in what it defines as an existential competition with China.

According to Biden’s plan, the federal tap would unlock about $ 6 trillion in 2022, with increases gradually reaching $ 8.2 trillion in 2031.

All these expenses could add to the debt, that now represents more than 100% of gross domestic product. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031.

The Democrat has made it clear where the $ 6 trillion is going: much of it would go to a bill of Infrastructure initially proposed at 2.3 trillion, but this was reduced to 1.7 trillion in negotiations with Congress. Another $ 1.8 trillion would be used to increase state funding for education and social services as part of creating a better workforce for the 21st century.

The overall goal, argued Biden, is to make growing up in the middle class of America, as well as putting the United States “to compete“With his rivals.

The budget proposal is released just before the Memorial Day long weekend, and Congress is suspended for a week.

Introducing it now may slow your momentum on Capitol Hill, where many Democrats want Biden to use his control of Congress to pass transformative legislation, but Republicans are playing hard try to block most of what the president is proposing.

Spending priorities are only one area of ​​division between the two parties. For example, Republicans are virtually unanimous in opposing Biden’s broad definition of infrastructure, which includes green energy and social programs. There is even less agreement on how to pay for these plans.

Biden wants to raise money by ending corporate tax cut that Republicans passed under the reign of his predecessor, Donald Trump.

The president too he wants to vigorously tackle the tax loopholes used by the big, ultra-million dollar corporations. Republicans, on the other hand, refuse to accept this mechanism, saying their own plans for smaller infrastructure spending could be paid for by reallocating unspent money already budgeted.

Despite the stalemate and scale of Biden’s mega-budget, the White House still has a potential trump card up its sleeve.

Normally, Biden needs at least ten Republicans to achieve the required majorities in the Senate, today divided equally between the two parties, a difficult task at best.

However, if the Democrats remain unanimous, which is also not guaranteed, they may be able to passing the budget through a quick procedure called reconciliation, which requires fewer votes.

With information from AFP

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