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U.S. President Joe Biden will present a $ 6 billion budget proposal over the next decade, with a commitment to double the government’s plans to invest in large-scale economics and reduce inflation after this year’s explosion.
The White House budget is expected to be released on Friday after the U.S. president went to Ohio on Thursday to defend the administration’s economic history and reject criticism from Republicans, saying high prices and labor shortages are already hindering the recovery.
“With the pandemic reversing, our economy is moving: an average of 500,000 new jobs are created every month, new unemployment claims are down nearly half and we have a record growth rate ahead,” Mike Donilon, one of Biden’s chief aides, wrote in a statement Thursday morning Before the trip to Ohio.
Biden’s confidence in the economic strategy has been questioned in recent weeks unexpected rise in April in consumer prices, coupled with slow employment growth, in line with the cure labor market. This has led to a critical attack Republicans that excessive spending was returning America to the era of stagflation in the 1970s.
But top officials in the administration have complained that price and job disruptions are a function of a rapidly opening economy that would be resolved fairly soon.
“The last inflation we’ve seen is going to be temporary, it’s not something that’s endemic,” Treasury Secretary Janet Yellen told members of the House Credit Committee on Thursday. “I expect it to last more months and have high year-end inflation rates.”
Following this year’s jump in economic activity, the Biden administration is making progress in making plans for $ 4 million in additional investments over a decade – both in physical infrastructure and social spending – in addition to nearly $ 2 million in short-term incentives. recovery and correct what is considered a major structural flaw in the U.S. economy.
But those expectations are hanging high negotiations With Republicans and Democrats on Capitol Hill. Meanwhile, the White House will hope that higher inflation will coincide with improved wages for many workers, as companies try to attract workers to better wages for work, especially in low-income households.
Whether Biden’s economic policies are considered successful or failing can be crucial to democratic hopes of maintaining or expanding a majority in Congress in next year’s midterm elections. In his memorandum on Thursday, Donilon said based on the polls that he still believed that people were in favor of many of the president’s proposals, even in the face of growing Republican opposition.
“When Republicans criticize the president’s plan to rebuild our economy through long-term investments in our country’s infrastructure, they are criticizing what voters have been demanding for decades,” he wrote. “When the rich attack the president’s plan to pay the tax quota, the Americans are attacking the basic sense of fairness.”
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