March 25, 2023

The Queens County Citizen

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“Rediscovering” the US economy | Joe Biden presented a 2022 budget of $ 6 trillion

"Rediscovering" the US economy |  Joe Biden presented a 2022 budget of $ 6 trillion

(Washington) Joe Biden aims to “rediscover” the American economy, with a budget proposal of $ 2022 tr trillion, whose priorities are against Donald Trump, and the cost of raising national debt.

Julie Chabanas
France Media Agency

Education, Health, Infrastructure, Climate Change: The priorities unveiled in this first draft budget of the American President are in line with his campaign promises and the broad outline he presented in early April.

Prevention of COVID-19

“We must seize this moment to rediscover and rebuild the new U.S. economy that invests in the promise and potential of every American,” the U.S. president said in a message to Congress.

COVID-19 has plunged the United States into its worst financial crisis since the 1930s, and although the first economy began to recover, it is still far from pre-epidemic levels.

“Despite all the progress our country has made in recent months, with structural weaknesses and inequalities in the world, the United States has not been able to return to where it was before the Great Depression and recession. The old economy is still in place,” the president warned.

To do this, it is calculating two investment plans included in the project and making it possible to create millions of jobs: the first “for American families” of $ 1800 billion in 10 years, another on infrastructure. Bitter talks between the administration and the opposition.

Republican senators proposed $ 28,928 billion over eight years, agreeing to plan a $ 600 billion project against Democrats for $ 1,700 billion.

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The White House is trying to oust Congress-elected representatives over whether to vote on the draft budget.

Joe Biden can accurately count the Democratic majorities in the House of Representatives and the Senate. But they were so cramped, especially in the upstairs room, that he could not bear any deviations.

Overtake China

These plans to build a “new American economy” should allow the United States to “overtake its rivals,” beginning with China.

Because if there is a field that the president will follow in the footsteps of Donald Trump, it is trade competition with the Middle Kingdom.

When the federal government had to spend sky-rocket to deal with the COVID-19 epidemic, the total planned expenditure for fiscal year 2022 was at tr 6 trillion.

By comparison, the 2020 budget presented by Donald Trump in 2019 is about $ 7 4.7 trillion.

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

Swelling and debt and rising taxes

But all these costs increase debt, which now accounts for more than 100% of GDP. It will reach 111.8% of GDP in 2022 and 117% in 2031.

As promised, Joe Biden wants to raise taxes for wealthy Americans and for big business, which will double in the next ten years.

“Over time, savings from these reforms will outweigh the cost of investment,” the president said, adding that by the end of the ten-year budget period, “big and growing” profits and the annual deficit will be reduced. ”

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But he will have to recruit funds to persuade Republicans to vote in favor of this reform that unleashes the tax cuts implemented by Donald Trump.

The administration hopes to take advantage of historically low interest rates without raising the country’s debt with high interest to repay.

The White House budget usually marks the beginning of a never-ending process leading to government funding.

When there is a dispute between the two parties over the bill, the danger is that the federal administration will have to close it without funding: it will be a “shutdown”.