White House to propose US budget worth $6tn over a decade


US president Joe Biden is set to unveil a budget proposal worth $6tn over the next decade, doubling down on his plans for large-scale government investment in the economy with a bet that inflation will subside after this year’s burst.

The White House budget is expected to be released on Friday after the US president travels to Ohio on Thursday to defend the administration’s economic record and rebut Republican criticism that higher prices and labour shortages are already stymieing the recovery.

See also  Revenue from export of shrimps likely to increase 20% to $4.3 bn in 2021: Crisil

“With the pandemic in retreat, our economy is on the move: 500,000 new jobs created each month on average, new unemployment claims dropping by nearly half, and record-setting growth ahead of us,” Mike Donilon, one of Biden’s top aides, wrote in a memo on Thursday morning ahead of the Ohio trip.

The Biden administration’s confidence in its economic strategy has been challenged in recent weeks by data showing an unexpected surge in consumer prices in April, coupled with sluggish job growth because of mismatches in the healing labour market. This has triggered an onslaught of criticism from Republicans that excessive spending was bringing America back to the stagflation era of the 1970s.

But senior administration officials have countered that the disruptions to prices and jobs were a function of a rapidly reopening economy that would be resolved relatively soon.

“The recent inflation we have seen will be temporary, it’s not something that’s endemic,” Janet Yellen, Treasury secretary, told members of the House Appropriations Committee on Thursday. “I expect it to last several more months and to see high annual rates of inflation through the end of this year.”

See also  Joe Biden: President Joe Biden to propose $6 trillion U.S. budget for 2022 fiscal year

After this year’s jump in economic activity, the Biden administration is ploughing ahead with plans for additional investment worth $4tn over a decade — in both physical infrastructure and social spending — in addition to nearly $2tn in short-term stimulus to power the long-term recovery and correct what it views as big structural flaws in the US economy.

See also  Bitcoin rally was so huge it was worth the risk-adjusted twists

But those hopes are hanging on delicate negotiations with both Republicans and Democrats on Capitol Hill. In the meantime, the White House will be hoping higher inflation will be matched by improved wages for many workers as businesses try to lure employees back into the workforce with better salaries, especially for low-income households.

Whether Biden’s economic policies are deemed a success or failure could be crucial to Democratic hopes of maintaining or expanding their majorities in Congress in next year’s midterm elections. In Thursday’s memo, Donilon said that based on polling he still believed the public was backing many of the president’s proposals, even in the face of growing Republican opposition.

“When Republicans criticise the president’s plan to rebuild our economy through long-overdue investments in our country’s infrastructure, they’re criticising what their own constituents have been urging for decades,” he wrote. “When they attack the president’s plan to make the wealthy finally pay their share of taxes, they’re attacking the American people’s basic sense of fairness.”



Source link

Latest

5 Ways to Reduce Premature Skin Ageing in 2022

As you age, it is normal to lose your natural skin glow. The top layer of the skin begins to deteriorate as you get...

What Kind of Training Do Assisted Living Caregivers Receive?

Assisted living facilities are institutions built for clients that do not need round-the-clock medical care but who do need some help with the completion...

New record for Indian Railways! Highest ever single day LMO load of over 1142 MT delivered by Oxygen Expresses

Indian Railways had delivered the highest ever single-day load of more than 1142 MT of LMO by Oxygen Express trains on 23 May...

U.S. tariff review considers commodity shortages, inflation -official

Article content WASHINGTON — The Biden administration is weighing concerns about commodity shortages and inflation as it reviews trade tariff policy, the top...

10 Different Types of Roulette Betting Strategies

If you're new to the world of online roulette at N1 Casino Canada, then you may be wondering how to make your bets. In...