WASHINGTON-President-elect Biden said on Friday that he was in favor of spending more money to boost the weak US economy and put aside concerns about the federal deficit.
Biden told reporters on Friday: “Every major economist believes that we should invest in deficit spending to promote economic growth.” He cited low interest rates and limited Federal Reserve powers to resolve the Covid-19 crisis.
Biden said that as the city emerges from the chaos of the fatal riots in the Capitol instigated by President Donald Trump, Biden said that he will develop an economic relief plan this year that will cost “tens of thousands”
Biden said: “If we don’t take action now, things will get worse and it will be difficult to get out of trouble in the future. Therefore, we must invest immediately.” “There is a terrible thing that urgently needs to be acted upon.”
Biden’s remarks are given to Democrats two days after they are expected to gain control of the Senate to set agendas in the two Senates. The comments indicate that he and his party will not be inclined to tacitly acquiesce in the Republican national debt to limit new spending as they did during the Obama administration.
The president-elect suggested that he believes that the $900 billion popular relief package passed by Congress last month is not enough. His remarks were welcomed by progressives, who were skeptical of his mildness and lack of deficit intuition.
Senator Bernie Sanders, who is runner-up in the 2020 Democratic primary and may be the incoming chairman of the Senate Budget Committee, praised Biden’s comments in an interview on Saturday.
“The president-elect is completely correct. This is not the time to austerity politics,” Sanders told NBC News. “We cannot maintain the economics of austerity, which makes the rich perform well when the people who work in this country suffer.”
Sanders is ready to oversee the budget reconciliation process, which is unimpeded. Democrats, who seized control of the tie-breaker vote in the 50-50 Senate with Vice President-elect Kamala Harris, will be able to approve the policy of levying taxes and spending with a bare majority vote.
The Democrats will have a majority in the two Senates and will limit their ambitions even in the settlement. And on most projects, Senate Republicans will maintain the ability to resist and enforce the 60-vote threshold, which means that the greatest ambitions of progressives are unlikely to go far.
Sanders said he is on a “bold” agenda that includes $2,000 in stimulus payments, enhanced unemployment insurance, access to childcare, actions to combat climate change, alleviation of student debt and “significant investment in expanding healthcare Health” includes lowering the age of medical insurance eligibility from 65 to 60.
The Vermont senator urged his colleagues to focus on their goals, otherwise they may suffer a repeat of Obama’s first midterm elections. The Republicans won a huge victory in the Congressional race because, as Sanders said, voters “confirmed that the Democrats did not do enough to improve” their lives.
Sanders said: “We must take bold actions that we have never seen in this country since Roosevelt.” “If we don’t, I doubt we will have a majority in two years.”
In addition, the Democrats of the House of Representatives adjusted the rules of the Chamber of Commerce to make it easier to pass legislation related to deficits that are related to “economic or public health consequences of the pandemic; and to prevent, prepare for, or respond to economic, environmental, or climate change The consequences of public health”.
At least in the short term, some fiscally conscious Democrats have indicated that they are willing to shelve fiscal issues in order to resolve the economic crisis caused by the pandemic. One person said that he is willing to abandon the pay-as-you-go system, called PAYGO in Congress, which is an austerity measure that requires available funds instead of borrowed money to pay for new expenditures.
“I believe in PAYGO. I think you can waive the cash payment in a crisis, which is why those of us who believe in the budget balance amendment believe that you will always encounter exceptions to the crisis,” the co-chair of the bipartisan issue DN.J. Representative Josh Gottheimer said. Solving the core problem: “The pandemic is a crisis. We will have to solve it. If you don’t actually invest in helping the country tide over the difficulties, then you will pay a higher price on the back end.”