[ad_1]
US President Joe Biden will announce a budget proposal worth US$6 billion over the next ten years. His plan to double the government’s large-scale investment in the economy is also betting that inflation will weaken after the outbreak this year.
After the President of the United States traveled to Ohio on Thursday to defend the government’s economic record and refute Republican criticism that rising prices and labor shortages have hindered recovery, the White House budget is expected to be announced on Friday.
Mike Donilon, one of Biden’s main assistants, said: “As the pandemic recedes, our economy continues to evolve: an average of 500,000 new jobs are created every month, and the number of new unemployment benefits has fallen. Nearly half, record growth is also far ahead, as written in a memo written on Thursday morning before the trip to Ohio.
The Biden administration’s confidence in its economic strategy has been challenged by data in recent weeks. Sudden surge The consumer price index rose in April, coupled with the slow employment growth due to the mismatch of medical staff labour market.This triggered from Republicans Excessive spending brought the United States back to the stagflation era of the 1970s.
However, senior government officials retorted that the disruption in prices and employment was caused by the rapid opening of the economy, which will soon be resolved.
Treasury Secretary Janet Yellen told members of the House Appropriations Committee on Thursday: “The inflation we have seen recently is temporary and not universal.” “I expect it will last for a few months and by this year. At the end of the year see the annual high inflation rate.”
After the surge in economic activity this year, the Biden administration is working hard to formulate a plan to increase additional investment worth 400 billion US dollars in ten years, including physical infrastructure and social spending, in addition to a short-term stimulus plan of nearly 200 billion US dollars. Provide motivation for long-term investment. Long-term recovery and correction of what it considers to be major structural flaws in the US economy.
But those hopes are pinned in delicate moments Negotiating With Republicans and Democrats on Capitol Hill. At the same time, the White House will hope that the inflation rate will rise and the wages of many workers will increase as companies try to attract employees to return to the labor market with higher salaries, especially for low-income families.
Whether Biden’s economic policy succeeds or fails is critical to the Democratic Party’s hopes of maintaining or expanding the majority of seats in Congress in next year’s midterm elections. In a memo on Thursday, Donilon stated that based on opinion polls, he still believes that even in the face of an increasing number of Republican opposition, the public supports many of the president’s proposals.
He wrote: “When Republicans criticized the president for his plan to rebuild the economy through overdue investments in our country’s infrastructure, they criticized their voters for decades of urging themselves.” “When they criticized the president for finally making the rich pay. When it comes to tax planning, they are attacking the basic sense of fairness of the American people.”
[ad_2]
Source link
