By investing in infrastructure and funding research centers, US President Joe Biden wants to balance the playing field between Central America with prosperous cities like San Francisco, Boston.
|US President Joe Biden. Photo: AFP|
Joe Biden will almost certainly be the last US President of the “silent generation” – people born in World War II and witnessing the economic boom that created the rapid affluence of the middle class. save, while consolidating America’s leading industrial power role.
During the second half of his life, the 78-year-old US president saw a drop in middle-class national wealth and America’s growth gains concentrated in certain regions.
With an investment package worth about $ 2,000 billion announced on March 31, President Biden wants to reverse the trend of half a century ago and direct capital to people and forgotten lands.
President Biden’s (Democratic member) job creation and infrastructure development plan and a corporate tax increase to help cover the plan are in stark contrast to the opinion of promoting private markets. initiated by Republicans in the 1980 Ronald Reagan presidential elections and implemented by both Republicans and Democrats through tax cuts and deregulation.
Looking back on history, whether President Bill Clinton made social welfare cuts and deregulation in the financial sector, or President Barack Obama’s reluctance to spend heavily in the recent recession, both have been reluctant to intervene deeply in the economy for decades.
Rural areas and the Rust Belt of the United States have become blurred in the American development process as efforts to close the gap between rich and poor between blacks and whites have failed to bear fruit. Highlights.
This infrastructure investment plan of Mr. Biden reminds people of the great plan of the predecessor presidents from the Democratic Party. For example, President John Kennedy was currently ambitious for risky actions such as moon landing or President Lyndon Johnson’s efforts to implement “Great Society” initiatives to strengthen the social safety net. In addition, under President Dwight Eisenhower, the United States enacted legislation allowing the government to devote most of its resources to the construction of federal highways.
“I was impressed by the size, the structure,” Simon Johnson, a professor of economics at the Massachusetts Institute of Technology (MIT), commented on President Biden’s investment plan. “They seem to agree with the notion that it is possible to increase productivity, spur growth and spread it across the country” thanks to appropriate public investments.
However, the legal war in the US Congress over the investment plan of the Biden administration is expected to be very “very big”. Senate Republican leader Mitch McConnell said on March 31 that any bill that the Democrats proposed could be “the Trojan horse to push taxes higher”. Republicans have said they will not support Democrats’ efforts to include goals such as climate change response or equality in a spending bill.
The above investment plan was launched by the Biden government after a pledge of more than $ 5 billion last year to respond to the Covid-19 pandemic, most of which is to pay directly to households and the unemployed. Karma.
According to the Biden administration, the “wounds” caused by the Covid-19 pandemic may be deepened, so the continued implementation of federal subsidies, increased technology research, and job creation projects, is a way to help heal “wounds”.
The demographic and economic decline of small towns and many medium-sized cities in the United States has persisted for decades, through the ages of Presidents of both Democrats and Republicans, though both sides. The election eloquence pledged to reverse the situation.
The share of US GDP used to pay monthly salaries and workers’ income also declined. Economists fear this will increase inequality in American society.
With a program of investing in infrastructure and funding research centers, President Biden is fulfilling his voter promise and trying to balance the playing field between Central America and prosperous cities like San. Francisco and Boston.
In his speech on March 31, President Biden has pointed out that decades ago the US spent up to 2% of GDP on research and development, but now this ratio is less than 1%, while other countries are continuously expanding investment.
“We have gone backwards,” President Biden assessed. “The other door to the world is closing and closing rapidly. We cannot let this continue.”
Kenan Fikri, research director at the Economic Innovation Research Organization (EIG), said that Biden’s investment plan represents a major effort to address growing geographical inequalities at America … “It represents an approach that infrastructure can create or block opportunities.”
Attempts to close the rich-poor gap between blacks and whites have not made much progress in the past 30 years, despite 16 Democrats in the White House. Therefore, Biden’s plan this time is to invest in black communities, including those affected by seaport pollution or other environmental damage, and to invest in industries. industry in which black workers account for a large proportion.