Biden's decision will increase debt on America, may cause problems

Posted on 16th Jan 2021 by rohit kumar

On Wednesday, January 20, 78-year-old Joseph Robbett Biden Jr. will become the President of the United States, the world's most powerful country. There will be security arrangements in the capital, Washington DC, for fear of an attack by supporters of President Trump. It is being said that even in Iraq or Afghanistan, the number of American soldiers will not be the same as on this occasion in Washington DC.

 

Although this time the oath ceremony will fade due to security and epidemic, but this time also during the ceremony on January 20, the world will see the traditional glow and glow of America. This ceremony is also an opportunity to showcase the success and prosperity of America.

 

But after seeing these ceremonies, who will say that America is immersed in debt from head to toe and its subsequent generations will pass on repaying the debt.

 

In such a situation, which Biden has spoken about taking such a step before the beginning of his term, which will increase the debt on America.

 

On Thursday, Biden announced an economic package of about $ 2 trillion, aimed at fighting the epidemic, getting citizens vaccinated, helping low-income people with cash, helping small traders, and accelerating the entire economy. It will be funded by Federal Bank.

 

America drowned in debt

 

Before the announcement of the package made on Thursday, the government has spent $ 3.5 trillion out of the economic package given in the last nine months. Despite the epidemic prevention and the rollout of large packages, the growth rate is weak and the epidemic is spreading fast. As of Thursday, 3,75,000 Americans have lost their lives with the disease and an average of 4,000 people are falling prey to it every day.

 

The poor people are upset. Small traders are disappointed. Unemployment is increasing once again. For this reason, people of this package are in dire need. This is such a bitter medicine that is necessary for the country to drink, in the hope that the health of the country will be restored. But it can also have the opposite effect.

 

Professor Steve Hankey is a renowned teacher of applied economics at Johns Hopkins University and a member of President Ronald Reagan's Economic Advisory Council. He told the BBC's email to the BBC on Joe Biden's new economic package that this would increase government debt. He says, "The US government will have to pay for the increase in spending. The expenditure will be financed by increasing the national debt"

 

Last year, the GDP of the world's largest economy was US $ 21.44 trillion, but its national debt was $ 27 trillion. If this loan is distributed among the 32 crore population of the country, then every citizen will have a loan of $ 23,500. This means that even if America sold its entire economy, it would not be able to pay its entire debt.

 

Who is responsible for this?

 

American economic experts say that President Trump is responsible for the country's growing debt. According to him, Trump had promised to reduce the loan before coming to power but it was not fulfilled.

 

In the four years of President Trump, the country's debt increased by 7.8 billion dollars. When the President won the election in 2016, the administration's debt at that time was $ 19.95 trillion. By December 31, 2020, the national debt reached $ 27.75 trillion.

 

According to an article published last week in a magazine called Pro Publika, during Trump's tenure, federal finance was in dire straits even before the epidemic struck. This happened at a time when the economy was booming and unemployment was at a historically low level. According to the Trump administration's description, the level of national debt was in "crisis" even before the epidemic.

 

The crisis was caused by Trump not cutting tax and government spending, as the Washington Post newspaper recently wrote, "Trump cut taxes drastically in 2017 with no restraint on serious spending that caused the national debt. I grew more than necessary. " Remember that Trump reduced corporate tax from 35 percent to 21 percent.

 

But those who defend President Trump's record argue that the US also took advantage of the debt during his time - the rate of economic growth has increased, inflation has come down, there has been a record-breaking decrease in unemployment and interest has come down. Right-wing economists say that in the era of President Barack Obama and before President George Bush, the maximum debt increased.

 

Some teachers at Johannes Kepler University, Austria, have prepared a research paper on spending records by US presidents, according to which spending increased during the Obama era, and more so during the George Bush era because President Bush's During the period, the US launched a military operation against Afghanistan and Iraq which lasted for years.

 

But now the debt has increased, as claimed in a Pro Publika article, "Our national debt has reached the level it was at the end of World War II. Remember that debt increased 75 years ago due to war. , No military campaign was launched during the era of Trump. It was easy to get out of the World War II debt because the government did not have hefty spending responsibilities like Medicare and Social Security. "