US President, Joe Biden, presented his plan for the 2022 budget to Congress. The $6 trillion plan includes the two plans designed for families and employment, namely the American Families Plan and the American Jobs Plan.
According to the White House forecasts, unemployment will drop to 4.7% by the end of the year, to 4.1% in 2022 and 3.8% in 2023. Then, it should remain at 3.8% for the next seven years.
In the opinion of Joe Biden, the budget will make the US “stronger than ever”. The budget for 2022 will make America more competitive due to investments in infrastructure, education, and research as well as the expansion of social benefits for families said Biden in the draft budget published on Friday. The president promised that the investments would create millions of jobs.
The deficit should amount to 1.84 trillion dollars in the fiscal year from October. This indicates that the US government’s mountain of debt would grow to a good 26 trillion dollars by the end of next year, which would amount to almost 112 percent of annual economic output.
The budget is to be decided by Congress, so Biden’s draft probably only marks the start of a negotiation marathon. In the draft, Biden does not propose any major new initiatives but primarily provides details of the trillion-dollar packages he has already presented for infrastructure investments and an expansion of social benefits.