Economic Crisis and American Society: Can Biden Help the US Survive the Current Financial Downturn?

American society, today, displays a widening gap in incomes and wealth and a society teetering on the edge because of the disastrous actions of American politicians, both Democrats and Republicans. The irresponsible policies adopted by White House administrations have cost American society dearly in all economic and political realms during the past decades as the substantial reduction in social service expenditures has resulted in a host of societal problems in the United States.

The US economy was already in turmoil before the Covid-19 outbreak. Trump’s ill-advised corporate tax reduction has widened the US budget deficit and increased the country’s public debt to dangerously high levels. The US government is expected to face a $1.3 trillion fiscal deficit between 2021 and 2030. According to projections, the total federal debt would rise from 81 percent to 98 percent of US GDP by then, reaching its highest level since 1946.

Biden has proposed an economic roadmap that promises to create jobs by improving infrastructure and reviving the US economy to alleviate the current crisis. Biden offered a $1.9 trillion plan to reinvigorate the American economy, which drew bitter criticism from Republicans.

Conservative US legislators have described the idea as “shocking,” claiming that it includes provisions that waste money and increase the national debt. According to Republicans in Congress, the bill would do nothing to maintain major businesses, re-employment, or stimulate the economy.

Biden’s financial strategy, according to observers, will be the first test of his capacity to lead the country in the face of the pandemic, worsening economic circumstances, and deteriorating political schism in Congress.

According to Biden’s administration, the financial and social aid package’s declared goal is to provide immediate assistance to American households and businesses while simultaneously concentrating on the pandemic.

Biden, however, broke his presidential campaign commitment by refusing to collect taxes from affluent businesses and individuals.

The Biden administration is currently dealing with the most challenging economic situation in American history. In April of this year, prices of necessary commodities like fuel, food, and housing increased throughout the United States, compared to the same month last year.

The US unemployment rate surged to 6.1 percent at the end of April, according to the Associated Press (AP), contrary to labor market analysts’ predictions. The number of jobless people climbed considerably in this period, reaching 9 million 810 thousand, a 120 thousand rise over the previous month.

The great majority of Americans now believe the nation is on the brink of economic collapse due to the massive increase in the number of jobless, which some estimate at 41 million, and business closures and worries of a repeat of the 1292 Great Depression.

Furthermore, inflation jumped by 1.6 percent in the 12 months to April compared to the same time last month, reaching 4.2 percent, 0.8 percent more than formerly predicted, and the highest level ever recorded.