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Is President Biden’s Economic Plan the Way to Fix the American Economy?
The economic theory of trickledown has elicited mixed reactions in various circles. Some favor its implementation, while others outrightly oppose it. Trickledown economics is a set of policies designed to promote economic growth by giving tax cuts and other benefits to the wealthy population. By enriching the richest, this approach will eventually benefit the lower and middle classes. Advocates assert that increased investment and job opportunities created by the wealthy will benefit everyone in the long run. On the other hand, critics insist that the approach needs to be revised and that the wealthy are unlikely to invest in ways that will deliver gains for the broader population. Instead, they argue, this approach exacerbates the gap between rich and poor, ultimately harming the economy.
“Bottom-up and middle-out” is what President Joe Biden said in a tweet, as he believes “trickle-down economics doesn’t work” anymore. However, proponents of the theory, also known as supply-side economics, highlight that the positive effects will eventually spread to society by granting tax breaks and other advantages to the rich and businesses.
Those admirers argue that such measures will inspire the affluent to create more job opportunities, thus fueling economic growth. Lower taxes on the wealthy and corporations could encourage them to spend and invest more, boosting the economy overall.
Critiques against trickle-down economics claim that the perks provided by these policies don’t reach society as a whole. Instead, affluent individuals and corporations utilize their tax benefits to boost their riches and influence instead of contributing to community welfare or job opportunities. Also, critics assert that providing tax favors to the wealthy and corporations leads to greater imparity in income, as the economy’s progress is confined to the top. Moreover, studies state that implementing trickle-down economics doesn’t result in amplified economic growth or job openings.
Infrastructure, education, and job training programs can benefit the middle and working class, unlike traditional economic models that prioritize the wealthy and corporations. President Biden supports this alternative approach by advocating for a focus on “rebuilding the backbone of this country, the middle class, to grow the economy from the bottom up and the middle out.” In doing so, he strives for a more sustainable and equitable economic system that prioritizes the needs of everyday people.
According to Joe Biden, the Economy’s Restructuring Strategy Fosters Growth with Foundational Support and Uplifts the Middle Class.
“ Trickle-down economics doesn’t work,” President Joe Biden recently tweeted, showing a commitment to rebuild the economy from the bottom up and the middle out, an approach that resonates with many. A solid and sustainable economy is built through investment in the middle class and working families. During Biden’s joint session of Congress speech in 2021, he said, “It’s time to grow the economy from the bottom up and the middle out. Trickle-down economics has never worked.” By prioritizing the needs of the middle class and working families, the economy can become more stable and resilient, benefiting all Americans.
Biden Supporters also Believe to rebuild the economy, generating jobs, and stimulating growth are pivotal. Biden’s initiatives, such as investing in sustainable energy and infrastructure, and enhancing healthcare and education accessibility, can potentially usher in millions of new job opportunities for middle-class and working-class citizens. Supporting small enterprises and fostering job growth leads to a dynamic and muscular economy that can benefit all tiers of society with positive spillover effects.
Furthermore, democrats insist promoting social mobility and addressing income inequality is crucial in rebuilding the economy from the lower and middle classes upwards. Biden plans to increase taxes on wealthy people and companies while also increasing the accessibility of reasonably priced housing and healthcare, marking a capacity to lower income inequality and encourage social mobility. A more equal and impartial society leads to a more stable and sustainable economy, which extends its advantages to all citizens. Nevertheless, that argument has always been at the forefront of every political debate in the United States and will likely face scrutiny for decades.
References
- Joe Biden on Twitter: “Trickle-down economics doesn’t. Work Retrieved May 26, 2023, from twitter.com/JoeBiden/status/1661839597909712940
- Biden: ‘Trickle-down economics has never worked.’ Retrieved May 26, 2023, from thehill.com
- Trickle-down economics doesn’t work, but build-up does. Retrieved May 26, 2023, from www.theguardian.com
- I Helped Coin the Phrase “Middle-Out Economics.” Retrieved May 26, 2023, from newrepublic.com/article/167506/biden-middle-out-economics
- The Transformation at the Heart of Biden’s Middle-Out Retrieved May 26, 2023, from prospect.org/economy/2023–02–09-Biden-middle-out-agenda/
- Remarks by President Biden on his Vision for the Economy. Retrieved May 26, 2023, from www.whitehouse.gov
- Biden’s State of the Union case for his quiet revolution. Retrieved May 26, 2023, from www.washingtonpost.com
- Biden: Trickle-down economics “has never worked.” Retrieved May 26, 2023, from www.axios.com
Originally published at https://www.newsbreak.com.
