Introduction
Without a slight less doubt, one of the greatest challenges related to the outbreak of the Covid-19 pandemic is the economy. The disruption caused by Coronavirus has caused a large global recession and has virtually paralysed several economic sectors, especially those related to tourism and leisure.
The economic crisis has forced several countries and supranational organizations to create recovery plans intending to revitalise the economy. On this 29th of April, President Joe Biden addressed the Congress to present his investment plan, a plan that he qualified as “once in a generation”.
What is Biden proposing?
Biden chose the eve of his 100th day in office to deliver his plan to the US Legislative Power. Standing in front of the Speaker of the House of Representatives, Ms Nancy Pelosi, and the Speaker of the Senate and Vice President, Ms Kamala Harris, President Biden presented his project, which includes a tax increase and a greater government investment. The vaccination campaign has helped to revitalise the economy, but it is far from normal, with a job market that has not got off the ground yet.
Biden has presented two joint plans: the American Jobs Plan and the American Families Plan. He has stated that these plans will be funded by increasing taxes on the wealthiest and greatest corporations: “It is time for corporate and the wealthiest 1% to pay their fair share”.
The American Jobs Plan will consist of investing in public infrastructure to boost the job market. This will include renewing highways, railroads, bridges, ports and airports. Biden’s plan projects to stimulate the creation of employment and to concede benefits to essential home care workers as well. It also pretends to ensure the quality of the jobs created.
The American Families Plan is intended to boost the families’ economies, which are damaged as a result of Coronavirus. This plan will provide free pre-school for children aged 3-4, tuition-free community college, tax breaks and paid medical and family leave.
Biden projects a public expenditure of $4 trillion, following the $1,9 trillion stimulus package that was signed last month.
The economic plan was not the only issue treated by President Biden. He also urged Congress for gun control, immigration and criminal justice reform.
The Republican reaction
The Republican Party has criticised Biden’s first 100 days in office. Chairwoman of the Republican National Committee Ronna McDaniel has stated that Biden had failed and that “our nation is worse-off and more divided”. The only African-American Republican senator Tim Scott said that this plan will “lower wages”, and it is all a “liberal wish list of big government waste”.
However, Democrats have a very comfortable position within the Legislative Power, with the majority in the House of Representatives and a 50-50 in the Senate (in case of a tie, the Speaker’s vote decides, and the person in the office is the US Vice-President, Kamala Harris).
This ambitious plan wants to boost America’s damaged economy and to leave behind the economic nightmare caused by Coronavirus. Will it be the XXI Century’s New Deal? We will have to wait to see the results.
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