[ad_1]
A weak US jobs report has amplified political tensions ahead of bipartisan talks between the White House and lawmakers next week on Joe Biden’s next multimillion-dollar economic plans, further complicating the road to a deal.
Following the release of data on Friday showing that the pace of hiring in the U.S. economy had dropped from 770,000 in March to 226,000 in April, Biden called on Congress to act quickly to pass additional economic legislation beyond of the $ 1.9 million fiscal stimulus already approved.
He urged lawmakers to approve proposals of $ 2.3 million in infrastructure spending and $ 1.8 million in social security spending over a decade, paid for with higher taxes on the rich and businesses.
Next Wednesday Biden he must welcome the four congressional leaders – including Nancy Pelosi, House Speaker Chuck Schumer, Senate Majority Leader and Republicans Mitch McConnell and Kevin McCarthy – to the White House to start talks.
“No one should underestimate the difficulty this battle has,” he said. “We still have work to do here in Washington. The American people count on us. So let’s do it. We are building an economy that gives dignity and gives everyone a chance. ”
But while Democrats stress the importance of additional actions to bolster the recovery, Republicans are calling for the administration to change course and make adjustments to its economic strategy.
“I think [the jobs data] has expanded each side as confirmation of the position they already held. Democrats see the danger of stagnation, a crisis of child care and the fear of catching the virus at work, driving people away and with so little chance of overheating, “said Austan Goolsbee, professor of University of Chicago and former Obama administration. official. “Republicans see an improved safety net that keeps people away and opposes government involvement.”
McCarthy, who is the top Republican in the House of Representatives, issued a forceful statement saying Biden “did not solve a crisis, but created new ones.”
“Unless President Biden stops doubling his failed tax and spending agenda, unless he works with Republicans to rebuild our economy, his crisis-era policies will continue to trap Americans in a fear cycle, ”he added.
Many economists who were baffled by the slowdown in job creation say they expect the fall to be only temporary and that the strong deployment of vaccinations in the United States combined with strong spending thanks to the previous stimulus will strengthen the recovery in the next few months.
Speaking at the White House on Friday, Janet Yellen, the U.S. Treasury Secretary, said she still expects the United States to reach full employment next year, though she acknowledged the recovery could be “bumpy.”
Democrats and the White House are likely to argue that their next spending plans will help address some of the major structural problems that have held back the U.S. economy in the past, including labor force participation. Among them are deficits in physical infrastructure, child care and education.
Slow figures could also help ease concerns about excessive inflation. “I think a very small number of people have these concerns. And I think there was a lot of advanced data on that, ”said Michael Madowitz, an economist at the Center for American Progress, a left-wing think tank.
“The real silver wrap in this is that the people of Pollyannish ‘oh, God who’s heating up the economy,’ seems ridiculous right now.”
But Republicans and Conservatives say this should serve as a warning to the White House that its policies have so far focused too much on increasing labor market demand rather than supply.
“They have to have a slightly more personalized economic message than just spend, spend, spend,” says Doug Holtz-Eakin, George W Bush’s former economic adviser now at the American Action Forum, a think tank. “To get this package, they have to explain how it will get people to work and be more productive at work.”
If no agreement is reached with Republicans, the White House and Democrats could approve their plans using their own meager majorities on Capitol Hill, but that would require a high degree of party unity that would be difficult to achieve. .
“The evidence is clear that the economy demands urgent action and that Congress will not be deterred or delayed in making transformative investments for the people,” Pelosi said.
[ad_2]
Source link
