U.S. President Biden talked twice on June 28 and July 6 to talk about the "Bidenomics" that has been told by the media for two years.He used this term to label himself, which means that he confirmed that the current favorable US economic situation has become an integral part of his political capital.Biden Economics will become a political business card for Biden's political career and a brand of the 2024 election in the United States.
The United States has always had a convention that a set of economic policies implemented by the Presidential administration to a certain economics. The well -known "Reagan Economics" has been popular in the media and academic circles for many years.However, it is rare to stick Biden Economics like Biden.Biden divided Biden Economics into three parts: invest in the United States; educate and give American workers' rights; promote competition and help small enterprises.The guiding ideology of Biden Economics is "from China, from the bottom up."
U.S. economy is unexpectedly good
Bynden chose to publicly claim Biden Economics at the end of June because of its unexpected performance of the US economy.
Earlier this year, the market has been worried that the Fed's continuous interest rate hike will target the US economy and may enter the decline in the second half of the year.The current fact is that the US labor market has strengthened, the unemployment rate fell to 3.6%in June, and employed positions increased by 210,000.According to the US Department of Labor report, the average income of employees increased by 12 cents per hour, namely 0.4%, reaching $ 33.58.The inflation rate in the United States fell to 3%in June, the lowest level in more than two years.
After the implementation of the three bills including inflation reduction bills, the US manufacturing investment has invested more than US $ 200 billion. Since Biden took office, the US manufacturing employment position has increased by about 800,000. The overall economy has created more than 13 million jobs.EssenceBy the end of June and early July, the three major indexes of the U.S. stocks rose from 20 to 40 % from the low valley last year, and stocks from manufacturers to petroleum manufacturers rose.
A good economic performance in the United States confirms the preliminary positive results of Biden Economics.The policy tools resorted by Biden Economics are: implementing industrial policies internally and implementing trade protectionism to the outside world.
On June 14 this year, I published an article entitled by the United Morning Post entitled Biden to regain the industrial policy and then plasticted the American manufacturing industry, and preliminated the industrial policy of Biden Economics. I will not repeat it here.
In terms of foreign economy, the Bayeng government is not interested in how to further promote global free trade.On April 27 this year, National Security Consultant Sarawan explained the four challenges facing the United States: First, the industrial foundation of the United States has been hollowed out; second, the new environment defined by geopolitics and security competition is globalThe pursuit of economic dependence has become very dangerous; third, the acceleration of climate crisis, the urgent need of clean energy transformation; fourth, the inequality of the harm of democracy.
Faced with four challenges, Shalvin proposed a four -step development strategy: the first step is to launch a new foundation in China with the modern American industrial strategy; the second step is to cooperate with partners to build the elasticity and elasticity and the supply chain of the supply chainSecurity; the third step should surpass traditional trade agreements and establish new international economic partnerships; the fourth step is to mobilize trillions of dollars to enter emerging economies.Shalvin described the vision of US foreign economic strategy as a new international economic order, and called it "the Consensus on the New Walgon".
The significance of the Economics of Biden
First, Biden Economics is a subversion of Reagan Economics.Reagan Economics is a subversion of Keynesianism since the New Deal of Roosevelt.Reagan Economics Principles New Liberalism advocates tax cuts, relaxation controls, reducing rules and regulations, tightening currency and cutting government expenses.Reagan economics integrates the proposition of the supply school and the loan school, and is supported by the eclecticism.
Bynden described the "Trickle-DOWN Economics" claimed by Reagan Economics as a failed policy proposition when talking about Biden Economics.The "Middle Out" that Biden said is the new concept of the Democratic economic policy and the political concept developed by the Democratic Party in recent years. The core principle is to support the middle class.Biden Economics regards the purchasing power of the middle class as the necessary factor to create employment and economic growth, and believes that the only way to prosper is to increase the income of the middle class and benefit the whole society."Top" advocate "trickle economics" advocated by Reagan Economics.The "trickle economics" advocates benefiting the general public through tax cuts to stimulate the growth of the rich."From the bottom up" is to start from improving the economic status of ordinary people such as workers, and then benefit the rich to get rich.
Reagan's new liberal policy claim has not fulfilled its superb growth commitment.Starting from the mid -1970s, the fate of the rich and other people had different differentiation, and the income of 90%of the population stagnated or decreased.Based on actual value, although the economic scale has doubled, the revenue of most families in 2015 is still lower than 1973.During this period, almost all growth returns were occupied by a wealthy class with a population of 1%.By the 2010, the average income of CEO (CEO) was about 300 times that of employees.
As consumer expenditure accounts for 70%of the GDP (GDP), the hollow of the middle class in the United States will inevitably lead to slowing consumer demand and enter the "long -term stagnation" era.As enterprises will invest in dividends and stock repurchases in most of their profit (and tax cuts), rather than used to develop or increase the reinvestment of growing employees' wages, economic investment has slowed down.A report by the OECC in 2014 estimates that in the past 20 years, the increasing inequality has reduced the growth of US GDP by 9 percentage points.Each year's economic activity loss exceeds $ 2 trillion.
Bynden believes that the method of dripping in Reagan's economics has caused the middle class to fail and the United States fails.Reagan's economics expanded its deficit, increased inequality, and weakened the infrastructure of the United States.Biden established Biden Economics on the basis of "bottom -up", so as to distinguish the rich foundation established by Reagan Economics from the middle class foundation established by Biden Economics."From the outside" is the expression of supporting the middle class.
Second, Biden Economics respects the big government and directly denies the small government advocated by Reagan Economics.Reagan economics is a reflection of new liberal policies.The core idea of neo -liberalism: The free market is essentially efficient, and the government's "intervention" will distort the market and reduce social welfare.The Democratic Party has also accepted neo -liberal economics.The Clinton government announced that "the era of the Great Government has ended" and also advocated the adoption of more kind and gentle "trickle effects", release the market, and use the income brought by growth to compensate for the "losers" in the free market competition.
Bynden Economics intervene in the economy with the help of industrial policy, which reflects the re -transfer of the US government's governance economy to a large government.The government uses policy levers such as tax subsidies, supervision, customs customs, quotas, and even completely ban to choose winners and losers.For example, under the operation of Biden Economics, car manufacturers, driven by consumer subsidies, manufacturing subsidies, and increasingly strict emission regulations, have shifted their production from gasoline vehicles and trucks to electric vehicles.
Third, the foreign trade policy advocated by Biden Economics is a subversion to the United States for decades of advocating free trade. The essence is to return to businessism.The idea of regenerative businessism is to advocate the growth of the growth of national wealth with the national strength, and the implementation of trade protection is only a policy measure.On April 27th, Shalin's speech was a framework connecting domestic and international economic policies to improve the economic strength of the United States.
On July 12, Lael Brainard, director of the National Economic Council, delivered a speech to show the beautiful results of Biden Economics.From Roosevelt's pursuit of Keynesia to Reagan economics, and then from Reagan Economics to Biden Economics, it clearly shows that the United States is a highly self -correction society.It is not perfect to board economics, and it will be subverted after several years.
The author is a commentator in Shanghai, China
