Joe Biden wants to “reinvent” the US economy with an ambitious 2022 budget

US President Joe Biden presented on Friday a $ 6 trillion budget for 2022 whose priorities contrast with those of Donald Trump, and spending that would inflate the country’s debt to an unprecedented level.

Education, health, infrastructure, climate change … The priorities unveiled in this very first draft budget of the American president are in the vein of his campaign promises and the broad outlines presented in early April.

“  We must seize the moment to reinvent and rebuild a new American economy that invests in the promise and potential of every American,  ” Joe Biden said in a message to Congress.

One plan for families, another for infrastructure

Covid-19 plunged the United States into its worst economic crisis since the 1930s, and while the early economy is starting to recover, it is still far from pre-pandemic levels.

For this, the tenant of the White House is counting on two investment plans, included in this project and which should make it possible to create millions of jobs: a first “  for American families ” of 1,800 billion dollars over 10 years , another on infrastructure, the subject of bitter negotiations between the administration and the opposition.

The Republican senators propose $ 928 billion over eight years, against 1,700 billion for the Democrats who agreed to plan their project of 600 billion . The White House tries to spare the elected representatives of Congress, who will vote or not the draft budget. Joe Biden can certainly count on Democratic majorities in the House of Representatives and the Senate. But they are so narrow, especially in the upper room, that he can hardly afford any defection.

Surpass China

These plans, intended to build the ”  new American economy  “, must also allow ”  the United States to surpass its rivals  “, starting with China. Because if there is a field on which the president follows in the footsteps of Donald Trump, it is that of commercial competition with the Middle Empire.

Joe Biden intends to significantly increase the amounts allocated to investments in education, health and infrastructure. The defense budget increases slightly to $ 756 billion.

But all of this spending risks driving up debt, which now represents more than 100% of gross domestic product. It is expected to reach 111.8% of GDP in 2022 and 117% in 2031. As promised, Joe Biden wants to raise taxes for the richest Americans and for big businesses, which will more than double in the next ten years.

”  Over time, the savings from these reforms will exceed the cost of investments,  ” added the president, promising ”  large and growing  ” gains and a reduction in the annual deficit ”  by the end of the budget period. ten years and each year thereafter ”.

But he will have to deploy treasures of persuasion to convince Republicans to vote in favor of this reform, which would unravel the tax cuts implemented by Donald Trump. In the event of disagreement between the two parties on the bill, the risk is that the federal administration, not funded, is forced to close: it is the “  shutdown  ”.

Leave a Reply

Your email address will not be published. Required fields are marked *