Reference News Network reported on June 6 (Text/Zhang Binyang) The highly anticipated US debt limit crisis reached an agreement with the White House and the Republicans of Congress to come to an agreement. The US government once again avoided the disaster situation of debt defaults.On June 1, the US Senate approved the debt limit agreement reached by Biden and McCarthy.Earlier, the House of Representatives had passed the bill supported by the two parties.According to the agreement reached between the two parties, the Republicans agreed to suspend the upper limit of debt until January 2025; the White House agreed to restrict the growth of the federal government freely controlling expenditure in the next two years.
In this farce that is essentially made by related systems in the United States and repeatedly staged, the market generally pays attention to the financial turmoil and economic crisis caused by this problem and unsatisfactory and possible defaults.However, in the process of bargaining with Republicans on this issue, there is also a highlight of what is the fate of a series of fiscal stimulus measures launched by Biden since taking office.
Since Bayeng came to power, by promoting a series of bills aimed at enhancing American industrial capabilities, large -scale public investment and tax stimulus were conducted for semiconductor, clean energy industry and related infrastructure.Some media said that this is the most important intervention in industrial policies over the past decades, and this series of policies and measures centered on semiconductors and new energy as the core are called Biden Economics.
US President's National Security Affairs Assistant Jack Middot; Shalvin described Bayeng Economics as a modern American industrial strategy, which is a new economic paradigm.MIT Technology Reviews said that Biden Economics has promised to provide hundreds of billions of dollars in federal investment in three major bills, with a view to changing the US technology and manufacturing pattern.These public investment and tax discounts include 550 billion U.S. dollars in infrastructure investment and employment laws in the next five years, US $ 280 billion in chips and scientific laws, as well as about US $ 390 billion in the field of inflation reduction bills.
In essence, the Bayeng government's expenditure frenzy aims to revise the US economy by rebuilding the industrial foundation.However, from the perspective of marketing of marketing, the Bayeng government's industrial policy is a reckless attempt to select economic winners; from the perspective of Republicans of Congress, it is the root cause of government expenditure out of control.After the House of Representatives, McCarthy, reached an agreement with Biden on the debt limit crisis, wrote an article on the Wall Street Journal that the Democratic Party was addicted to the addiction.McCarthy said: In the first two years of Biden's ruling, the president spent 1.5 trillion US dollars unilaterally through administrative orders.He accused these large -scale public investment that caused high inflation for decades in the United States, so Biden's policy was unsustainable and irresponsible.
In the proposal passed by the House of Republics controlled by Republicans at the end of April, the Republican Party had regarded the green tax incentive of the Biden government as one of the conditions for increasing the debt limit. It was required to abolish the Democratic Party passed last year to renewable energy, electric vehicles and other climatic friendly.Incentive measures for technology.
However, according to the new agreement reached by McCarthy and Biden, the contents of hundreds of billions of dollars of tax discounts signed in order to accelerate the transformation and climate change to accelerate the transformation and climate change are not included.Republicans' previous wishes were not realized.Not only that, the new agreement also includes the content of accelerating the environmental review process of energy infrastructure construction.
Marketing -based practitioners degrade the government's economic intervention policies, and pointed out that companies like Apple, Google, and Amazon are not the results of the government's deliberate cultivation.However, the economic practice of developed countries in recent years has also shown that the government has positive significance for economic intervention through fiscal policy and industrial policy.
Research from the chief economist of Nomura Securities Research Institute showed that for developed economies that have fallen into the decline of the balance sheet after the financial crisis in 2008, only the government can take positive fiscal policies to maintain economic stability and growth of economic stability and growth.EssenceCompared with the implementation of fiscal tightening Europe, the government does not hesitate to spend money in the United States in terms of economic growth.
The debt limit the bill reached this time did not withdraw the tax incentives, to a certain extent, it shows that the United States has a certain consensus on promoting the development of green energy and semiconductor industry.
However, the rising debt is still a hidden concern of the US economic prospects.Economist Weekly analyzed that by 2030, the US government's annual expenditure for paying interest will exceed national defense expenditure.Once the economy is poor, fiscal expenditure fails to effectively make economic cakes, and the proportion of excessive debt will amplify financial risks or drag down the US economy.The Wall Street Journal commented on this: Biden's reputation and inheritance bets spent nearly $ 2 trillion in taxpayer's money.If you do well, this effort can reshape the economy and help him win the second term.When the Republicans of Congress promised to strictly supervise the government's expenditure frenzy, any error may threaten the chances of re -election in Biden in 2024.
