Biden to condemn Trump-style economic policies and caution against potential government shutdown

US President Joe Biden has issued a warning about the potential economic consequences of federal budget cuts and a looming government shutdown. With the clock ticking towards a possible shutdown, Biden emphasized the impact it would have on the American economy and voters. The Republican-controlled House and the Democratic-controlled Senate have just 12 days of session left before funding for the US government expires on September 30th.

House Republicans are pushing for spending cuts for fiscal 2024, proposing a budget of $1.47 trillion, which is $120 billion less than what Biden and Republican House Speaker Kevin McCarthy agreed upon in May for the debt ceiling. However, this demand has been rejected by the White House and Senate leaders, including top Republican Mitch McConnell.

The White House released a statement stating that President Biden will explain how these harmful cuts fit into the larger Republican budget plan and what it would mean for the American people. Furthermore, the White House plans to spend a significant portion of this fall criticizing the Republican budget plan, which they are referring to as “MAGAnomics.” This term was popularized by former President Donald Trump’s budget director Mick Mulvaney and describes Trump’s strategy of corporate tax cuts, welfare cuts, and slashing regulations.

In his speech on Thursday, Biden will argue that Republicans intend to lower taxes for the wealthy and make cuts to programs such as Social Security and Medicare. Republicans in Congress are also pushing to make Trump’s tax cuts permanent, and some Republican candidates running in the 2024 election have proposed changes to the popular Social Security plan.

In contrast, Biden and Democrats have introduced their own plan called “Bidenomics,” which focuses on investing in infrastructure, green energy, and local manufacturing, while also advocating for companies to share more profits with workers. They have already pushed over $1.4 trillion in federal funds through Congress.

However, Biden’s economic plan seems to be struggling to resonate with the American people. Despite presiding over what is considered a strong economy, Democratic economists, pollsters, and officials have expressed concerns about Biden’s ability to convince the majority of the country about the strength of his economic stewardship. Recent polling in August from the Democratic organization Navigator Research found that only 25% of Americans support Biden’s major actions, such as the Inflation Reduction Act, while still believing that he is doing a poor job handling the economy.

The situation remains tense as the deadline for funding the US government approaches. Biden’s address to the nation serves as a warning about the potential consequences of budget cuts and a government shutdown, while also highlighting the differences between the Republican and Democratic approaches to the economy.

Original Story at www.reuters.com – 2023-09-14 15:45:00