President Biden’s $6 trillion Budget proposal and predicted economic growth

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US President Joe Biden’s budget blueprint has predicted a considerable amount of growth during his presidency and beyond, in spite of he has projected on how a federal spending spree is needed to spur on job creation. A chart released on the White House assumptions on gross domestic product gains through 2031. It also indicated that the White House is not projecting any long-term economic boom. His administration has predicted a healthy rebound from the coronavirus doldrums of 5.2% growth in 2021. The economic growth will reach just 2% when adjusted for inflation by 2023. The White House assumptions said that GDP will grow by a meager 1.8% or 1.9%, between 2024 to 2029 before reaching 2% again in 2030 and 2031.

However, the pace for growth is below the GDP gains of the last decade when the economy grew by an average of 2.3% between 2010 and 2019. It is noteworthy that Republicans rapidly panned the budget for the massive spending plans and said it will drive up the debt and inflation while doing little to boost the economy. The chairman of the Republican Study Committee, Jim Banks said, “The $6 trillion Biden budget is reckless, wasteful and anti-American. It doubles down on the Biden strategy of spending money we don’t have and includes trillion-dollar deficits as far as the eye can see”. President Biden’s fiscal 2022 budget request tallies up the administration’s 8-years, $2.3 trillion American Jobs Plan, and the $1.8 trillion American Families Plan.

It incorporates them into Biden’s $1.5 trillion requests for annual operating expenditures, which includes the Pentagon and other federal agencies. The proposal would push debt levels held by the public to the highest levels in 2024. The deficit would hit $1.8 trillion in 2022 under the plan and would routinely run above $1.3 trillion over the next decade, in spite of nearly $3 trillion in proposed tax increases. The gap between government spending and its collections in revenue would grow to nearly $1.6 trillion by 2031. President Biden also said, “Now is the time to build the foundation that we’ve laid, to make bold investments in our families, in our communities, in our nation. We know from history that these kinds of investments raise both the floor and the ceiling of an economy for everybody”.