Joe Biden’s Economic Strategy: the Return of “Big Government”
The article aims to show the prospects of new economic strategy in the USA. The author shows that the economic crisis, reinforced by the pandemic, put the government into the center of economic life. The scale of financial resources allocated for economic goals is unprecedented and accounts for 9% GDP. On one side it may become a strong incentive for economic growth, on the other - may lead to economic overheat and inflation. Despite some apprehensions about outcomes of unprecedented financial intervention most experts expressed strong support to Joe Biden’s economic strategy as well elaborated and containing great potential for economic growth. The article made a conclusion that currently the former right-wing policy of “trumponomics” is replaced by Keynesian economic recipes. The strategy is based on 2 goals. The first is to mitigate the negative consequences of the pandemic and economic crisis and the second encompasses new economic programs including reconstruction of infrastructure and manufacturing, modernization of rural districts, retraining of millions of workers, construction of one million of new energy saving homes. The strategy will be realized by two stages. Initially it will focus on investment into infrastructure and climate change problems, then - on investment into human capital, education, healthcare and skills retraining. The economic rescue plan for $1.9 trln and long-term programs may reach about 3 trln dollars. In general Joe Biden’s economic agenda is unprecedented in postwar American history.