Illustration: Chen Xia / GT
U.S. President Joe Biden is proposing an impressive $ 6 trillion budget for fiscal year 2022 beginning Oct. 1. Excessive spending, which is harshly opposed by many in the United States, including Republicans, will significantly increase the nation’s debts and lead to a new round of hikes. overshadowing the livelihoods of ordinary Americans and forcing future American generations to tighten their belts.
If the Biden budget plan is approved and implemented, the US federal budget deficit will increase to at least $ 1.8 trillion by 2022 and the country’s total national debt will rise rapidly to $ 30 trillion, much above the country’s annual GDP. The burden of interest payments on U.S. public debt will continue to rise, weighing on young Americans and significantly hurting the nation’s future competitiveness.
The budget, which is likely to be approved by the U.S. Congress now controlled by Democrats, is leading many to view the Biden administration as another “tax and spending throughout the White House,” expanding the role of the federal government. American in American companies and households. finances, expanding the government’s impact on the half-lives of Americans from cradle to grave, who have clear characteristics of Biden-led progressive Democrats.
Since taking office on January 20, US President Biden has been occupied mainly by two agendas. First, he wants to put more money in the pockets of Americans so they can spend and bolster an economic revival that will improve Democrats ’chances of re-election in the midterm elections next year. Second, it must do everything possible not to let China’s GDP surpass the U.S. in its tenure. Otherwise, his position among American presidents will be overshadowed.
Because of this strange obsession with making the U.S. prevail in the “competition of two great powers,” Biden has largely inherited his predecessor Donald Trump’s trade and technology war with China. So far, Biden has not repudiated Trump’s policy of confrontation with China, if not hardened it.
Now, the U.S. president wants to make use of “excessively borrowed money” to buy a long-term U.S. economic growth to fulfill his commitment to keep the Chinese economy second. Days ago, Biden spoke in Detroit, the heart of the U.S. auto industry, and said he was dissatisfied with China’s current leadership in electric vehicle production and electric battery manufacturing technology, calling the North -Americans to do more and encourage them to buy American products.
As a concern for China’s large manufacturing capacity, the Biden administration has also aspired to copy. The $ 6 trillion budget plan will allow the U.S. government to learn from China’s experiences by repairing and repairing the country’s worn-out infrastructure projects (roads, water pipes, bridges, airports, industrial areas and connections). broadband on the Internet), so that the US could persuade and induce the world’s leading manufacturers, semiconductors and robotics manufacturing companies, in particular, to return to the United States.
Naturally, the Biden administration is expected to continue asking for loans to extend the government’s heavy fiscal spending in the coming months. At the same time, the U.S. Federal Reserve is unlikely to change its extraordinarily weak monetary policy to maintain robust U.S. domestic consumption, feed Wall Street bubbles, and maintain a high level of employment and GDP growth in the coming two years.
Within the foreseeable future, Washington is unlikely to reverse its current fiscal and monetary policies. Biden and his administration will continue to ignore the dangerous inflationary pressures and rising burden of a soaring national debt, which is becoming increasingly intense and will haunt the country again.
Biden’s $ 6.5 trillion budget for fiscal 2022 will bring the United States to its highest levels of federal spending since World War II as the president aims to fund a global economic agenda that includes major transportation investments , education and technological research and development, social welfare and the fight against climate change.
A considerable proportion of the budget is to be financed by tax increases on U.S. and upper-middle-class businesses: those that earn more than $ 400,000 a year, as the marginal tax rate on higher income is will increase to 39.6%, according to the budget plan.
Redistributing the revenue and wealth of large corporations and businesses, Biden’s inaugural budget plan vehemently opposes Republicans who had disapproved of it as “the most reckless and irresponsible budget proposal” that promised higher taxes, higher prices, overwhelming debt and less security. Republicans warn that raising taxes on U.S. companies will effectively paralyze their ability to compete globally.
Biden’s economic policies have already produced serious side effects. The average stimulus payment of $ 1,400 in most U.S. households this year, in addition to generous unemployment insurance in addition to normal unemployment benefits, has caused many blue-collar workers to abstain. of looking for work, while many small American tertiary companies complain about the growing difficulty in finding pawns. A Biden-style welfare state will only aggravate the problem.
And despite the massive U.S. vaccine deployment program over the past five months of this year, newer and more transmissible variants of coronavirus continue to be embedded in a good number of Americans and the death toll continues to rise. grow up. Many U.S. state and local governments continue to impose restrictions on businesses as they experience an increase in new coronavirus cases. The Biden administration must do more to effectively control the pandemic in the U.S. and protect more American lives, as well as borrow more, spend more, and pursue a new level of economic growth.
The author is editor of the Global Times. email@example.com