U.S. President Joe Biden to Address Impending Government Shutdown and Budget Cuts
WASHINGTON, Sept 14 (Reuters) – President Joe Biden will deliver a warning on Thursday about the potential economic consequences of federal budget cuts and a looming government shutdown. As the clock ticks closer to a possible government shutdown, Biden will emphasize how these developments will negatively impact the American economy and voters.
The Republican-controlled House and the Democratic-controlled Senate have approximately 12 days left in session before funding for the U.S. government expires on Sept. 30. The House Republicans’ demand to cut spending for fiscal 2024 to $1.47 trillion has created a rift between the two parties. This amount is approximately $120 billion less than what Biden and Republican House Speaker Kevin McCarthy agreed upon in May regarding the debt ceiling. Notably, top Republican Mitch McConnell, along with the White House and Senate leaders, has rejected the House Republican demand.
In a statement, the White House explained that President Biden will shed light on how these harmful cuts fit into the larger Republican budget plan and what this plan would mean for the American people. To carry out this mission, the White House will spend a significant portion of the fall criticizing what is currently known about the Republican budget plan, which they have labeled “MAGAnomics.” This term originates from former President Donald Trump’s budget director Mick Mulvaney and describes Trump’s “Make America Great Again” strategy. It primarily involves corporate tax cuts, welfare cuts, and regulations slashing.
Biden intends to argue that Republicans are planning to lower taxes for the rich while making cuts to programs such as Social Security and Medicare. Many Republicans in Congress are 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, President Biden and Democrats have introduced “Bidenomics,” a comprehensive plan encompassing investments in infrastructure, green energy, and local manufacturing. Their strategy aims to encourage companies to share more profits with workers. These efforts have led to over $1.4 trillion in federal funds being pushed through Congress.
Despite this, Biden is facing challenges in convincing the American people of the strength of his economic stewardship. Democratic economists, pollsters, and officials have noted that even though Biden presides over a strong economy, the majority of the country remains unconvinced of his economic plan’s efficacy.
In June, Biden attempted to sway skeptical Americans on his economic plan by presenting his vision of middle-class American prosperity during a speech in Chicago. However, recent polling from the Democratic organization Navigator Research conducted in August revealed that while 25% of Americans support Biden’s major actions, such as the Inflation Reduction Act, they still believe he is doing a poor job handling the economy.
Reporting by Nandita Bose in Washington; Editing by Christian Schmollinger, Heather Timmons, and Alistair Bell