President Joe Biden revealed a $6 trillion national budget proposal for the 2022 fiscal year on Friday. The budget focuses on infrastructure, education and climate change proposals in an effort to “reimagine” the American economy and boost the middle class.
The budget proposes higher taxes for corporations and high-earning Americans in an effort to redistribute wealth to the middle class. If approved, the budget would also push US debt to the highest level it has been in decades.
The budget projects a drop in the unemployment rate over the next few years. The budget drops the Hyde Amendment, which is a decades-old ban on federal funding for abortion. The budget would increase military spending by about 2.7 percent.
“Congressional Democrats look forward to working with the Biden-Harris Administration to enact this visionary budget, which will pave the path to opportunity and prosperity for our nation,” House Speaker Nancy Pelosi said in a released statement Friday. “The Biden Budget is a budget For The People.”
Economists, Wall Street investors and the broader public are weighing whether this happily ever after economics is believable. Former Treasury Secretary Larry Summers, a veteran of the Clinton and Obama White Houses, is among those warning loudly that such a massive infusion of government spending so quickly could cause unwanted inflation where prices of everything from rent to food rise sharply.