Friday, May 28, 2021
Six trillion budget on credit
Biden wants to “reinvent” the USA
Interest is low, money is cheap: Joe Biden is taking advantage of the time of crisis to present a budget proposal for 2022 that will total six trillion dollars. As Republicans rage, the US president is confident that investment in the future will pay off.
US President Joe Biden has proposed a budget for the coming year worth six trillion dollars (4.9 trillion euros). “We have to use this time to reinvent and rebuild the American economy,” said Biden, referring to his budget plans. “The US cannot afford to simply go back to where it was before the pandemic and economic crisis.” The draft for the budget year 2022 places particular emphasis on education, health, infrastructure and the fight against climate change. The defense budget would grow slightly to $ 756 billion.
However, the plans would entail considerable new borrowing: the national debt would grow to just under 112 percent of the gross domestic product in 2022. Biden said that in the long run, the return on investments will exceed their costs. In any case, the annual budget will ultimately be tied up in Congress, in which Biden’s Democrats only have a narrow majority. Biden’s draft is more of a wish-list of the president’s priorities.
“Most irresponsible proposal ever”
The opposition Republicans immediately criticized the draft budget sharply. “President Biden’s proposal would drown American families in debt, deficit and inflation,” said Senate Republican leader Mitch McConnell. House Conservative leader Kevin McCarthy spoke of the “most irresponsible budget proposal” he had ever seen.
Two major investment projects are built into Biden’s budget: a modernization of the country’s infrastructure and a program to support families. Biden originally presented a multi-year infrastructure package of $ 2.3 trillion, but has since fallen to $ 1.7 trillion in the face of opposition from Republicans. The Republicans tabled a $ 928 billion counterproposal on Thursday.
Biden also wants to implement an “American Family Plan”. The $ 1.8 trillion package includes more funding for preschool and higher education and tax breaks for families. To finance his plans, Biden wants, among other things, to increase taxes for companies and the rich, which the Republicans reject.