Biden's fiscal policy strengthens the economy and reduces the gaps

In an age where news headlines often dominate with negative news, it is important to also highlight the positive events. Biden's expansive fiscal policy is yielding results. Latest the report of the Federal Reserve and the Treasury Department shows a gratifying trend break in the US economy. It is a development that must not be overlooked.

Increased prosperity for all

Between the years 2019 and 2022, the wealth of the average American family has increased by a whopping 37 percent. It depends on US fiscal policy under Biden. This means that the typical American household has become about 51 dollars richer during these three years. That's an impressive increase, and the average household net worth is now around $800.

Most impressively, however, the increase is more evenly distributed than usual across society. It is an increase that includes all groups and reduces the gaps between different segments of the population. Regardless of age, ethnicity, level of education or place of residence, people have become richer and inequality has decreased. The pervasiveness is that the percentage increase in income is greater for the poorest than for the richest. This is not only good for equality. THE poor consume everything they get. So this benefits productivity extra as well.

Reduced indebtedness and increased assets

An important reason for the increase in wealth is that Americans have begun to reduce their debt. The debt-to-income ratio has declined steadily since 2010. This is likely the result of the financial relief measures implemented during the pandemic, which were primarily aimed at increasing the financial security of Americans.

In particular, it is worth noting that this reduction in indebtedness is an important factor in the increasing wealth. When households have less debt, their net worth increases.

In addition to reduced indebtedness, the increase in the value of assets has also played an important role. Property prices have risen, which has increased the value of homes. This is especially important because most Americans' greatest assets are their homes. Retirement savings have also performed well, despite rising interest rates, increasing people's wealth.

Biden's expansive fiscal policy

However, a central factor behind the increased production is the expansive fiscal policy implemented during Joe Biden's presidency. After the economic crisis caused by the Covid-19 pandemic, Biden has normalized the extended financial pandemic budget and invested in increased taxes for the rich, which has increased production and equality. Biden has also increased the government deficit, This has also boosted production, purchasing power and equality. Government deficits is that the state creates money to satisfy society's need for increased production or other needs. Biden has paid off millions of dollars for millions of students from their student loans. This has increased purchasing power.

But Joe Biden's Green New Deal, his expansionary fiscal policy, in the form of the IRA Act, has proven to be a comprehensive plan to combat climate change while creating jobs in the green sector. This has been inspired by the original New Deal from the 1930s and has led to investments in renewable energy, modernization of the electricity grid, and investments in energy efficiency. This has not only benefited the climate, but also increased production and created new jobs.

Darker side aspects

The wars in Ukraine, Israel and elsewhere that the US supports for better or worse may have increased production, purchasing power and equality in the US. But in the long term war destroys goods, factors of production as well as destroys the environment which has a negative impact on the economy and inflation in the long term.

Summary

The latest report shows an increase in the wealth of the average American. This has happened thanks to a combination of Joe Biden's expansive fiscal policy that has led to reduced private indebtedness and increased, more evenly distributed private assets. Joe Biden's expansive fiscal policy has played a decisive role in boosting production, purchasing power and equality. The green transition has not only benefited the environment, but also strengthened the economy and created jobs. It is a positive development that gives hope for a more stable and fairer economy for the United States. It is important to recognize and celebrate these advances in the American economy, even in a time of uncertainty and challenges.

Vote for larger government deficits!

1 responses to “Biden's fiscal policy strengthens the economy and reduces the gaps"

Well done Oskar 😊😊☀️