After the weeks of touting the benefits of the proposed spending of the President, Joe Biden, the White House will lay out the effects on the federal debt of his first budget plan. By 2024, the debt would be increased as a share of the economy as it was at the time of World War II. Notably, the plan is already giving fodder for critics.
The campaign arm for the House Republicans termed the $6 trillion budget plan of Mr. Biden for the fiscal year that begins in October as “insane.” Also, the National Republican Congressional Committee said that it is no surprise the proposal is being released on the Friday before a holiday weekend when the public is less likely to be paying attention to the news. However, the Progressives rushed in the defense of Mr. Biden.
Seth Hanlon, a senior most fellow at the Center for American Progress has said, “Debt was already on pace to reach high levels, but the nation was not on pace to meet public needs on economic security for families, climate change, and other areas.” Also, the economic special assistant to former President Barack Obama, Mr. Hanlon said, “There’s no reason to believe that the faster debt growth under Biden’s plan would have a meaningful economic effect. And definitely not in relation to the (positive) effects of the policy changes.
Jen Psaki, the White House press secretary in a statement declined to confirm the $6 trillion budget figure. Jen said that traveling with Biden to Cleveland, where the President proclaimed the economic benefits of his plans that his proposals would “put us on better financial footing over time.”
After Biden took office, Democrats approved another $1.9 trillion in coronavirus relief spending. Mr. Biden has since proposed spending $4.1 trillion on infrastructure, education, and safety net programs for families through what he’s calling his American Jobs and American Families plans. He wants to pay for those packages through higher taxes on corporations and the wealthiest Americans.