Joe Biden has ambitions to reform important parts of American society and presents a budget proposal of 6,000 billion dollars. Enormous government debt, but also increased taxes for business and the rich are key points that make it difficult to get Congress to agree on.
On Friday, the main elements were presented by President Biden, who said that after the pandemic, the United States cannot afford to let things go and go as it did before.
“We must seize the moment and build a new American economy,” he said.
Infrastructure
Earlier this year, Biden has a comprehensive infrastructure package and an assistance package for pandemic victims. Friday’s budget bakes these priority areas into an overall budget which also includes defense policy, social policy and various public support schemes.
Overall, the budget provides an overview of the Biden administration’s path choices for the United States in the coming years, a political turnaround after the four years with Donald Trump in the White House.
Like all budgets from a president’s hand, these are proposals and proposals that will be thoroughly reviewed and changed during consideration in Congress. The huge increase in government debt will give Republicans renewed ammunition in their criticism of the Democrats that they will only scoop out money and then sharpen taxes to the detriment of the economy.
Health and school
A good part of the background for the strong growth is Biden’s two major plans, the job plan to upgrade the country’s dilapidated infrastructure and at the same time create new jobs, and the family plan for a strong upgrade of the US health services, kindergartens and schools.
The plans are a result of Biden’s visions of improving the living conditions of ordinary Americans and at the same time making the American economy more competitive in a world that is increasingly affected by the fight against climate change and a green shift.
The budget will initially have to be financed through borrowing, but the deficit will gradually be reduced when planned tax increases over the next 15 years take effect.
The administration’s calculations show that the deficit will grow to 1.8 trillion dollars in 2022, even though the pandemic is probably over and the economy is in its fastest growth since the 1980s.
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