Biden Budget
Many citizens use a budget to manage their expenses, which is very financially responsible. Budgets prevent us from being in debt by overspending, and it shows how much we save in a certain period of time. Not only do we have budgets, but the government does too.
It seems a bit obvious that there is a government budget. I mean, we probably would’ve failed as a country economically without, but it’s not that simple. The government budget is more complicated, and it has trillions of dollars flowing into it. Simply put, the government presents their anticipated tax revenues and their proposed expenditures for the fiscal year, giving them an idea on economic policy and deficit numbers.
On Thursday, President Biden announced the budget for the 2022 fiscal year, his first since gaining the presidency. Biden proposed a 6 trillion-dollar budget, which would put the US at its highest spending level since World War II when they funneled money into defense spending. The proposed spending includes many pieces of Biden’s agenda such as the infrastructure plan and the American Families Plan, which looks to expand social safety. Along with that, 1.52 trillion dollars are going to discretionary spending such as education, fighting climate change, and medical research. This marks a major contrast from the idea of Reaganism as Biden believes that more government help will benefit the country, especially the middle class. In the budget, taxes on the wealthy and corporations will shrink deficits in the 2030s, but deficits will run high until then.
The budget, like many things in this country, had people divided. Democrats supported the budget and government spending, while Republicans were sounding the alarms on the deficit. It’s possible that the massive increase in spending could have negative effects on the economy, especially the debt-to-GDP ratio, along with the fact that the recovery is still taking place. However, President Trump was causing a massive increase in deficits, and Republicans were keeping quiet, which signals flaws on both sides. Only time will tell if these groundbreaking plans will help us in the long run, with many hoping it does. What do you think about Biden’s budget?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
