Non-partisan analysts suggest the Biden administration’s budget would decrease the US’ economic growth for the next three decades.
According to analysts from the Penn Wharton Budget Model, a think tank at the University of Pennsylvania’s Wharton School, “Over the 2022-2031 budget window, President Biden’s FY2022 budget proposals would require $5.9 trillion in new spending.” This budget window includes the Biden administration’s $2.3 trillion American Jobs Plan and the $1.8 trillion American Families Plan, and its $1.5 trillion request for annual operating expenditures. The broadest measure of economic production in a country, gross domestic product (GDP), is expected to drop by 1.5 percent by 2050 as a result of Biden’s policies.
For instance, “Universal preschool increases future productivity but gains to GDP do not show up until those cohorts enter the labor force beginning in 2039.” The University of Pennsylvania’s Wharton School previously expressed economic concerns over the American Families Plan.
In July, FBA reported “By increasing income taxes for wealthier Americans, introducing $2.3 trillion in federal expenditures, and spending with borrowed money, the legislation would slash output by 0.4% within the next three decades. The bill would also decrease the capital stock — the total amount of machinery, buildings, and other productive equipment in the American economy — by 1.2% over the same period.”
ARTICLE: ANTOINETTE AHO
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: CNBC
Latest posts by Antoinette Aho (see all)
- Arizona legislative staffer issued $2.75 million verdict after being allegedly discriminatorily fired - November 15, 2021
- Ohio Republican lawmakers pushing an even more restrictive abortion law than Texas - November 15, 2021
- Sen. Manchin notes inflation is ‘getting worse’ as House posies to vote on social spending package - November 15, 2021