United States: Joe Biden’s billionaire plan to revive the economy

the President of the United States, Joe Biden, announced this Friday his first budget plan, which includes expenses for $ 6 trillion and an sharp rise in taxes for the wealthiest citizens.

This project will also include new social programs and one significant increase in investments for the fight against climate change. However, to execute it, it must be approved by Congress, where Republican Senator Lindsey Graham called the plan “ridiculously expensive.”

Depending on the project, the country’s debt would reach 117% of its gross domestic product (GDP) by 2031, which would exceed the levels it had during WWII.

And this, despite the proposal of raise around $ 3 trillion by raising taxes to the wealthiest businesses and citizens of the country.

Former Republican President Donald Trump also increased the deficit each year he was in power (2017-2021) and his last the budget proposal approached US $ 4.8 trillion.

Biden’s plan includes spending $ 1.5 trillion on the operations of the Pentagon and other government departments, in addition to two programs already announced: that of reactivation of the works, which would cost around US $ 2.3 trillion, and the one at assistance to families which includes expenses of almost 1.4 billion US dollars.

Biden, who belongs to the Democratic Party, said its budget “invests directly in the American people” and will “serve to” strengthen the country’s economy and improve our long-term financial health. “

What does the plan have?

The White House explained that the proposal will help the economy grow from the perspective of the poorest and middle class.

The budget includes:

The plan also has one notable omission: the Hyde Amendment, a federal rule. which says that public money cannot finance abortions in the United States except in cases of incest or rape.

Biden is the first president to exclude this amendment from his budget plan, a move that has been applauded by the most progressive. For years he, a devout Catholic, had supported the amendment, but during the presidential campaign he changed his mind.

This idea will have a winding path in the Senate, where even members of his party will join with Republican senators in getting the rule included and left unchanged.

What about inflation and the deficit?

White House chief economic adviser Cecelia Rouse has admitted that inflation will rise in the coming months, but will stabilize at an annual rate close to 2%.

Some economists – including Larry Summers, who was an adviser to former Presidents Barack Obama and Bill Clinton – have warned that spending of this nature could raise inflation, leading the Federal Reserve to raise taxes, which would ultimately leave the country at risk. risk of falling into a recession.

Biden’s budget is expected to add an additional $ 14.5 billion to US debt over the next decade.

But the White House has indicated that this debt will be paid with tax increases over the next 15 years.

Critics are skeptical of such projections with a happy ending that would come long after his presidential term ends.

Many Republicans have been alarmed by the spending record proposed by the plan.

Senate Minority Leader Mitch McConnell said the plan was “a socialist dream.”

And Senator Jerry Moran said this bill “will put a huge debt on the shoulders of future generations.”

BBC Mundo

Conocé The Trust Project