President Biden seems to be making a start in rebuilding the US economy and society.
The same can not be said of Britain under a right wing Conservative government that has been in power for more than a decade.
President Joe Biden has taken some absolutely revolutionary initiatives which will confront free market obsessives and set the us on a new route towards a fairer , more egalitarian polity. one initiative that stands out is a policy to protect us jobs and industry by instituting a “made in America” strategy. this is a head-on attack on neo-liberal philosophies.
In taking these initiatives, Biden is taking a step towards the European union with the exception of the UK, which is now suffering the effects of more than 20 years of free-market policies and the extreme destruction of British industry which has been driven by the “financialisation” of the economy, driven by the extreme de-regulation of the banking and finance industries.
- Provide COVID-19 relief, which he did through the $1.9 trillion American Rescue Plan, the first leg of Biden's economic plan.
- Build on the Affordable Care Act and provide health insurance coverage for 97% of Americans.
- Raise an additional $4 trillion in tax revenue by increasing the top tax rate to 39.6%, taxing capital gains at ordinary rates, and raising the corporate tax rate to 28%.
- Forgive student loan debt and make college free for those making up to $125,000.
- Raise the minimum wage to $15 an hour and repeal "right to work" laws.
- Expand "Buy American" policies through government purchasing while using subsidies, federal matching, and incentives to make American products more competitive.
- Invest $1.3 trillion in infrastructure over 10 years, which will result in the $1.2 trillion Infrastructure Investment and Jobs act.
- Spend $2 trillion on clean energy during his first term as president.
Made in All of America
In July 2020, Biden proposed a $700 billion plan to boost America's manufacturing and technological strength. This involved government spending of $400 billion on U.S. goods and services and a $300 billion investment in research and development (R&D) on technologies like electric vehicles, lightweight materials, 5G, and artificial intelligence (AI).
"Biden believes that American workers can out-compete anyone, but their government needs to fight for them," says his website.
"Biden does not accept the defeatist view that the forces of automation and globalization render us helpless to retain well-paid union jobs and create more of them here in America. He does not buy for one second that the vitality of U.S. manufacturing is a thing of the past."
Biden said he's committed to raising the federal minimum wage to $15 and eliminating "right to work" laws. He also wants to give workers more bargaining power by getting rid of "abusive" non-compete clauses, removing rules in contracts that prevent employees from discussing pay with each other, and stopping companies from classifying low-wage workers as managers to avoid paying them overtime.
He wants international trade rules that
"protect our workers, safeguard the environment, uphold labor standards and middle-class wages, foster innovation, and take on big global challenges like corporate concentration, corruption, and climate change."
President Biden wants a pro-growth, progressive tax code. His plan is expected to raise nearly $4 trillion in additional revenue over a decade. According to the Tax Policy Center, "The highest-income 20% of households (who make about $170,000 or more) would bear nearly 93% of the burden of Biden’s proposed tax increase, and the top 1% nearly three-quarters."
Here's a list of changes he campaigned on making:
- Raise the top income tax rate back to 39.6% from 37%
- Tax capital gains and dividends at ordinary rates for those with annual incomes over $1 million
- Tax unrealized capital gains at death
- Apply Social Security payroll tax for those earning over $400,000 a year
- Raise the top corporate income tax rate to 28% from 21%
- Impose a 15% minimum tax on the book income of large companies (at least $100 million annual net income)
- Tax profits earned from foreign subsidiaries of U.S. firms at 21%
Britain is a nation in steep decline…
Article from Die Welt, Berlin
“Whatever has happened to Great Britain, asks Thomas Kielinger. Many Germans used to view the UK as “the model of a proud society living at peace with itself, guided by “common sense and its time-honoured institutions.
How different things are in the UK today. Having chewed through four prime ministers in seven years, the country is now dangerously close to internal rebellion, as strikes by doctors, teachers, nurses, teachers and train crews paralyse public services.
The Middle classes are facing impoverishment owing to years of austerity and inflation that is well above the Eurozone average.
As for the young, soaring mortgage rates have left the “quintessentially” British experience of home ownership out of the reach of many.
Any German visiting London for the coronation next week will see little of this deterioration, as the country takes refuge in nostalgic visions of British greatness. But scratch the surface and they’ll see a nation in deep decline”.
State of the Nation
For the past several months, the flow of bad news has been constant, the country’s coffers are empty, public administration is ineffective and the nation’s corporations are struggling. As this winter came to an end, more than 7 million people were waiting for a doctor’s appointment, including tens of thousands of people suffering from heart disease and cancer. According to government estimates, some 650,000 legal cases are still waiting to be addressed in a court of law. And those needing a passport or driver’s license must frequently wait for several months.
Boarded up windows and signs reading "To Let" and "To Rent" have become a common sight on the country’s high streets, while numerous products have disappeared from supermarket shelves. Last year, 560 pubs closed their doors forever, with thousands more soon to follow, according to the industry association. Without Oxfam, the Salvation Army and other charitable organizations that operate second-hand stores, numerous city centers would have almost no shops left at all.
Last week, the International Monetary Fund forecast that in no other industrialized nation would the economy develop as poorly as in Britain this year. Even Russia is expected to end up ahead of the UK
Dashboard of decline:
The UK's workforce has shrunk 1.2% since the start of the coronavirus pandemic
UK trade openness has fallen more sharply than other advanced economies since Brexit
The UK’s productivity has lagged behind that of Europe, the US and Japan for decades. Measured by the value produced each hour by a worker, British productivity is estimated to be about 20% lower than that of France and Germany and 30% lower than the US.
In March the UK Research and Innovation (UKRI) agency – which controls science funding in Britain – told universities its budget for international development projects had been cut from £245m to £125m.
UK Versus G7 Growth
The UK is projected to fall to the bottom of the G7 league next year
GB Wealth Inequality
Wealth in Great Britain is even more unequally divided than income. In 2020, the ONS calculated that the richest 10% of households hold 43% of all wealth. The poorest 50%, by contrast, own just 9%.
Repairing the Nation
The sickness is deep in the vitals of UK society
Reconstruction of the shattered economic and social fabric of the nation will take at least 15 years of hard work by Central governments working in close harmony with Local government, the finance sector, Industry large and small, research and universities, and myriads of people working as individuals and in close knit groups. Britain will also have to repair its shattered relationships with the European Union, the United States and other democratic nations.