WASHINGTON — President-elect Joe Biden mentioned Friday that he favors setting aside concerns about the federal deficit in an effort to spend more cash to spice up the ailing American financial system.
“Every major economist thinks we should be investing in deficit spending in order to generate economic growth,” Biden instructed reporters Friday, citing low rates of interest and restricted Federal Reserve powers to repair the Covid-19 crisis.
As this metropolis reels from the chaos of a deadly riot at the Capitol spurred by President Donald Trump, Biden mentioned he’ll lay out an financial aid bundle this yr that can value “in the trillions of dollars.” He said it will include emergency relief for those harmed by the pandemic as well as investments in infrastructure, health care and “a complete vary of issues which are going to generate good-paying jobs.”
“If we do not act now issues will get a lot worse and tougher to get out of the opening later. So we’ve to take a position now,” Biden said. “There’s a dire, dire must act now.”
Biden’s remarks came two days after Democrats were projected to capture control of the Senate, giving them the power to set the agenda in both chambers. The comments indicate that he and his party will be less inclined than they were during the Obama administration to acquiesce to Republican demands to limit new spending because of the national debt.
The president-elect suggested he believes the $900 billion pandemic relief package passed by Congress last month would not be enough. His remarks were well-received by progressives who have been skeptical of his moderate and deficit-conscious instincts.
Sen. Bernie Sanders, I-Vt., the runner-up in the 2020 Democratic primary and likely incoming chairman of the Senate Budget Committee, praised Biden’s comments in a Saturday interview.
“”The president-elect is strictly proper that this isn’t the time for austerity politics,” Sanders told NBC News. “We can not keep the austerity economics which have allowed the very wealthy to do phenomenally on this nation whereas working folks endure.”
Sanders is poised to oversee the budget reconciliation process, which is not subject to a filibuster. Democrats, who will seize control in the 50-50 Senate with the tie-breaking vote of Vice President-elect Kamala Harris, will be able to approve policies of taxing and spending with a bare majority of votes.
Democrats will hold narrow majorities in both chambers, which will constrain their ambitions even in reconciliation. And on most items, Senate Republicans will retain the ability to filibuster and force a 60-vote threshold, which means the biggest ambitions of progressives are unlikely to get far.
Sanders said he’s eying a “daring” agenda that includes $2,000 stimulus payments, enhanced unemployment insurance, access to child care, action on climate change, mitigating student debt and investing “very considerably in increasing well being care,” together with by decreasing the Medicare eligibility age from 65 to 60.