Six trillion budget on credit: Biden wants to “re-invent” America

Friday, May 28, 2021

Six trillion budget on credit
Biden wants to “re-invent” USA

Interest is low, money is cheap: Joe Biden is taking advantage of a time of crisis to propose a 2022 budget proposal that would total six trillion dollars. As Republicans are angry, the US president is confident that the investment will pay off in the future.

US President Joe Biden has proposed a budget of six trillion dollars (4.9 trillion euros) for the coming year. “We need to use this time to rebuild and rebuild the American economy,” Biden said, referring to his budget plans. “America cannot afford to return there before the pandemic and economic crisis.” The draft of the budget year 2022 lays special emphasis on education, health, infrastructure and the fight against climate change. The defense budget will increase slightly to $ 756 billion.

However, the plans would involve considerable new borrowings: the national debt would be reduced to just 112 percent of GDP in 2022. Biden said that in the long run, the return on investment would be more than his cost. In any case, the annual budget will eventually tie in Congress, with Biden’s Democrats having only a narrow majority. Biden’s draft exceeds the presidential wish-list of priorities.

“The most irresponsible proposal ever”

Opposition Republicans sharply criticized the draft immediate budget. Senate Republican Leader Mitch McConnell said, “President Biden’s proposal would sink American families into debt, losses and inflation.” House Conservative leader Kevin McCarthy talked about the “most irresponsible budget proposal” he had ever seen.

Biden’s budget includes two major investment projects: a program to modernize the country’s infrastructure and support families. Biden originally offered a multi-year infrastructure package of $ 2.3 trillion, but has fallen to $ 1.7 trillion due to opposition from Republicans. Republicans on Thursday made a proposal of $ 928 billion.

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 raise taxes for companies and the rich, which Republicans reject.