(FiveNation.com)- In contrast to previous administrations, Joe Biden’s deficit policies have generated less heated debate. However, a strategy to lower it has been proposed by the president.
The politics around the national deficit and debt are often bizarre. Regardless of economic circumstances or the presence or absence of a significant catastrophe (like the 2008 financial meltdown) that necessitates significant rapid government spending, the national debt will always increase, although the deficit will typically increase and decrease.
There has been a historical pattern of the deficit being ignored as a political problem under Republican presidencies, only to reemerge once a Democrat takes office, particularly if Republicans still hold sway in Congress. To illustrate the point, incoming House Speaker Kevin McCarthy has recently called for eliminating fiscal deficits.
Through the years, prominent members of both parties have previously argued that deficits aren’t a problem. Former Vice President Dick Cheney famously said that Reagan proved that deficits don’t matter.
President Joe Biden purportedly has a proposal to cut the budget deficit. To pressure Republicans to prioritize government income above expenditure, Biden plans to make debt reduction a cornerstone of his 2024 budget. The White House “wants to test Republicans’ commitment to cutting yearly deficits over the next decade” as part of its strategy for the upcoming confrontation with congressional Republicans over the debt ceiling.
According to the transcript of the State of the Union address, Joe Biden promised in a different part of his address that he would provide a “fiscal plan” next month that “would decrease the debt by $2 trillion” without making cuts to programs like Social Security or Medicare.
The plan is to raise taxes “on the rich,” (which usually means the middle class will take the brunt of the hit.)
At best, the president’s budget is the opening bid in talks over the federal budget between the executive branch and Congress. The Republican-controlled House will reject any tax hikes proposed by Biden and will instead demand further cutbacks to government programs.
The final budget that is passed is almost usually a compromise between the parties to avoid a government shutdown and keep the government financed as the debt grows.