President Biden is set to propose a $6 trillion budget on Friday to boost the economy citing infrastructure, education, and health care as sectors that need investing. According to reports, President Biden’s first budget request since he became the POTUS is asking the federal government to spend $6 trillion in the 2022 fiscal year which will rise to a total of $8.2 trillion by 2031.
The spike in Biden’s budget is linked to his reported plan for an expanded federal government working to boost the Middle Class and working families by upgrading the nation’s infrastructure as well as expanding the social safety net captured in his American Jobs Plan and American Families Plan. Biden’s proposed federal budget will now take the United States to its highest sustained levels of federal spending since World War II, alongside deficits above $1.3 trillion throughout the next decade.
President Biden is reportedly going to fund his agenda through tax increments on multi-million dollar corporations and high earners which will see budget deficits reduced in the 2030s. According to officials from Biden’s administration, jobs and family plans would be fully offset by tax increases over 15 years, which the budget request backs up. President Biden also plans to fund investments that are deemed “crucial to keeping America competitive” by his administration, through his taxations which would reportedly increase the federal fiscal footprint to levels that have been barely seen in the postwar economy. This investment encompasses money for water pipes, roads, electric vehicle charging stations, broadband internet, and advanced manufacturing research. It also proposes that child care, universal prekindergarten, a national paid leave program and a host of other initiatives be funded in the near future.
President Biden, during an address to Congress earlier this year, stated that “the pandemic has only made things worse. Twenty million Americans lost their job in the pandemic, working- and middle-class Americans.” Mr. Biden added that “At the same time, roughly 650 billionaires in America saw their net worth increase by more than $1 trillion, in the same period. Let me say it again. 650 people increased their wealth by more than $1 trillion during this pandemic and they’re now worth more than $4 trillion. My fellow Americans, trickle-down, trickle-down economics has never worked. It’s time to grow the economy from the bottom and the middle out.”
President Biden’s economic team is also reportedly taking a conservative approach with issues regarding the projection of the economy’s growth as against that of his predecessor’s. Mr. Biden’s administration predicts economic growth of just fewer than 2 % for over 10 years, after accounting for inflation, should he complete his agenda. Unemployment would reportedly fall to 4.1% by next year from the current 6.1% and remain below 4% in the years thereafter.