On his way back from a trip to the West Coast this week, Joe Biden stood in front of a spacecraft and wind turbine at the foot of the Rocky Mountains to create the perfect place to call on his vast wealth.
“We have set a goal, and that goal is achievable. I promise you, I promise you, “the President said outside Denver, Colorado on Tuesday.
With Congress returning to full work next week, the Biden’s leadership is entering a crisis. The verdict of current presidents, even those elected, is often based on the fulfillment of the law in their first 18 months. All the noise and criticism this summer around chaotic departure from Afghanistan and the spread of the Delta species, in the next few weeks to discuss the views of the leader of this country and the time.
If the White House has its own way, Biden will get approval from the council to farm about $ 5tn, plus on two orders, in construction, child care, education, health and climate change, supported by Tax growth for the rich and corporations.
Politically, this represents Biden’s massive legal victory after a brutal summer that led to his admission. It will also help the Democrats of the conference – with the help of the President – to make the loans more effective for low-income and middle-income US families in the mid-2022 elections, when they are at risk of losing their major in the House and Parliament.
But if the debt fails, it could leave the 78-year-old president seen as a political threat and could undermine his promise to all voters and the rest of the world to regain power in the United States.
“The great promises they have made to create the strongest, most resilient economy in all of this,” said John Podesta, White House chief of staff under Bill Clinton. “It’s time to ‘live or die’ to see if you have succeeded, or if you have successfully dealt with it.”
What is cut?
Getting traffic through Congress is uncertain, however. While one bill of $ 1.2tn on construction – from roads to bridges and roadblocks – is funded by Republicans, big money, $ 3.5tn of Biden’s plans, plus the amount of taxes, is only funded by Democrats, who the leaves cannot be any destination within the presidential party.
In March this year, shortly after Biden’s inauguration, Democrats rallied around the $ 1.9tn fundraiser to help the U.S. economy escape the season triggered by the new waves of coronavirus. But getting legislators to roll out a bigger package, including tax-related taxes, always has to be a lot of burden, especially for self-proclaimed Democrats.
This week, Biden spoke with some of the participants in the talks: summoned Joe Manchin, a West Virginia senator, and Kyrsten Video, a senator from Arizona, at the White House, to defeat the most skeptical Democrats. He also called on Nancy Pelosi, Speaker of the House, and Chuck Schumer, a senior member of the Senate, to complete the process.
“There are those who want to see that this package is prepared. And for some as a baby gets older, he or she will outgrow this. I think the most important thing is how much they can add, and how much does this affect? And if it’s not $ 3.5tn, what’s the point? ”Says Podesta.
The biggest problem is that the US is opposed to the last day of the month for the government to pay or not to be stopped by the federation, at risk of repaying his debt if it does not raise its debt soon.
“Failure is not a matter for the Democrats and for the president. But how do they all fit together? . . is probably the most difficult Rubik tube you can think of, ”Mark Warner, a Virginia senator for Virginia, told the Financial Times.
Those who preceded Biden in the Democratic Republic learned with great difficulty in the early days of their rule how difficult it would be to achieve the great legal goals that make up the legacy – even though they had great potential. Barack Obama endured months of heated debates over his signature on health and Wall Street reforms before he passed, while Bill Clinton’s health reform efforts finally failed after a year of protests.
Global growth in Biden’s economic dialogue is also important. Copying How the Biden season progresses could demonstrate America’s commitment to greenhouse gas emissions – and make further improvements at the Glasgow COP26 conference in November. In the meantime, the US has promised the establishment of new corporate taxes in the OECD in accordance with the terms of the agreement.
In addition, U.S. officials have said it is important for Biden’s administration to intensify its domestic spending, first and foremost, to make the best use of its global power and demonstrate that democratic systems can work.
“You need to set the table again when it comes to strengthening institutions, but most of all, promoting the idea that the government can do good things to help people survive,” says Warner.
Josh Lipsky, director of the GeoEconomics Center at the Atlantic Council, tank-think, says in the next few weeks the US may see Biden “failing to improve its domestic performance”, combined with a mortgage loan, or dealing with rising mortgage debt. along with a “big deal” on construction and construction, which could cost more money to “rebuild” than any other country.
“These are two very different events for the world to see in October. And it’s all in the air right now,” Lipsky said.
Slow growth
Uncertainty and divisions at the end of Biden’s business transactions are linked to the change An American outbreak from the plague. The extraordinary growth rate recorded in early 2021 has already begun to slow down considerably, with a sudden decline in productivity, due to the dangerous spread of the Delta coronavirus. Economists have moved swiftly in recent weeks to meet their predictions for the coming year, and promote speculation that the US economic system is now in its infancy.
“If it were a lie, we would have passed the V,” said Michael Gapen, US chief financial officer at Barclays, referring to the recovery process since the dramatic collapse last year. “We’ve had a great summary and we’ve had a big problem. We’re getting into a show that seems to be going well as it’s getting bigger and bigger.”
However, the Federal Reserve is also planning to reduce its funding base, starting with repaying $ 120bn a month set aside last year to support financial markets and promote recovery.
“This has been funded by the government on a scale never before seen in history, but what we are seeing now is contributions from government-funded resources to economies that need to stand on their own two feet,” says Nela Richardson, an economist at the ADP Research Institute.
Rising prices have become more severe, with early signs that high inflation is reported in areas most affected by the epidemic – including used cars and travel-related costs – are declining, albeit likely to change with many other ongoing price pressures. somewhere.
“We are seeing a gradual decline in the dynamics of several types, but for some groups it seems to be growing at a slower pace,” says Michelle Meyer, US chief financial officer at Bank of America Merrill Lynch.
Benefit to all
Many Republicans see Biden’s use of real-life fools as of now, claiming that the money is unnecessary, tax increases will be detrimental, and the result will be a kind of stability. “He’s interested in making more money without having to worry about wasting money – trying to move our country to the left forever,” said Mitch McConnell, junior Senate leader this week. “It’s not the last thing American families can do.”
But Democrats and the White House remove any worries that their share of the economy will be cheaper, as the money has spread for 10 years and is paid mainly due to higher government spending, as opposed to the recently promoted tariffs.
Joe Biden also invited Nancy Pelosi, the House Speaker, to complete their discussion © Samuel Corum / Bloomberg
In the long run, it is hoped that it will help boost America’s potential, by finally eliminating inefficient government spending, and reducing tax cuts in favor of the rich, thereby reducing fixed income and racial inequality. Jay Campbell, a democratic researcher at Hart Research, says that even if the final budget is reduced by reducing the size of the centrist Democrats, it will still be politically beneficial.
“It will affect the lives of the people in a number of ways, in ways that will benefit them – and Democrats will have what it takes to achieve the first two years of a united government,” he said.
After returning to Washington from Colorado, seeing Republicans continue to wreak havoc on the package and Democrats continue to quarrel, Biden made new statements from the White House, which appeared to have encouraged his military to cooperate with farming on the outskirts of parliament. process.
“This is an opportunity to be a country that we know we can be – a country where all of us, not just those above us are experiencing the growing economic benefits that will grow in the coming years,” Biden said. “Let’s not waste this moment trying to save a fortune that hasn’t worked well for the American people for a long time.”