Scatter?
Generous support?
The true value of "Bidenomics" April 27, 14:22
"Cash was transferred six days after the law was passed."
On March 17, the government paid $ 7,000 = about 750,000 yen to Olivia's bank account, which lives with her husband and three children in Missouri, Midwestern United States. Was transferred from.
Cash benefits provided to more than 80% of households in the United States amid the economic upturn.
It is a symbolic policy of "bidenomics" to support the workers with huge fiscal mobilization.
Speaking of the US economy, there is a strong impression of market fundamentalism with little state intervention, but the Biden administration is in control.
It has been 100 days since the inauguration of the administration on April 29th.
The image of the nation drawn by the president has come into view.
(Washington bureau reporter Yosuke Yoshitake)
Recovering American economy
The pace of recovery in the US economy is accelerating.
Retail sales in March, which show trends in personal consumption, recorded a significant increase of 9.8% compared to the previous month.
The number of people infected with the new coronavirus is the highest in the world, and the US economy fell to the negative level for the first time in 74 years in 2020, but the growth rate of GDP is expected to increase by 6.4%, and a V-shaped recovery is expected (IMF). Prediction).
The biggest factor is the spread of vaccination.
"The first time is over."
"Which company's vaccine?" In the
United States, such conversations are exchanged like greetings.
In fact, the number of vaccinations has exceeded 200 million, and more than 80% of those aged 65 and over and 50% of those aged 18 and over have completed at least one vaccination (as of April 26).
When I visited the resort area of Miami, Florida, there were many tourists along the beach.
"The vaccine has made me feel better. The Biden administration is doing well," said the couple, who said they had been vaccinated.
Benefit of 1.3 million yen in one year
Another reason to boost the economic recovery is cash benefits to households.
On March 11, President Biden enacted economic measures totaling 200 trillion yen.
The pillar cash benefits were provided in each country, including Japan, in the Corona War, and have already been implemented twice in the United States.
The feature of the Biden administration, which was the third benefit, was that while the economy was improving, cash of up to 150,000 yen per person was distributed to a wide range of households of 80% or more (payment target: annual income of about 860). 10,000 yen / household total of about 17.2 million yen or less).
Mr. Olivia mentioned above has a job as a writer, and her husband works as a consultant at a bank.
It is a middle-class family that has survived unemployment even with the corona sickness.
The amount of money received from the country in one year amounts to nearly 1.3 million yen.
In addition to spending money on home repairs and children's toys, he is planning an overseas trip this summer.
President Biden has named this economic measure a "rescue plan" and has put forward relief for those in financial distress.
However, the reality is that the new administration's stance of providing generous support to a wide range of workers has become apparent.
Unwavering huge fiscal mobilization
With the implementation of this measure, the US budget deficit increased 5.5 times in March compared to the same month of the previous year.
However, President Biden does not stop.
This time, it announced a new economic measure that will invest 220 trillion yen in domestic infrastructure development in eight years.
Its name is "Jobs Plan".
It is said that it will create employment under the initiative of the government by promoting repair projects for aging roads and bridges.
Reminiscent of the New Deal policy after the Great Depression.
In addition, we are considering a "family plan" to invest 100 trillion yen in the fields of social security and education.
These financial resources will be covered by increased taxation on large corporations and the wealthy, and they have clarified their policy to rebuild the country through the protection of workers.
Underlying bitter memory
Spend national money and stay close to homes and workers.
Behind this is a bitter memory that President Biden will never forget.
In the 2016 election, the Democratic Party was deprived of power by Mr. Trump, who was also said to be a political layman.
The cause of the defeat was the lack of support from the workers.
Taking the thoughts of those who felt abandoned in Washington, Mr. Trump stimulated large corporations and the stock market to revitalize the economy.
The unemployment rate has temporarily improved to a historic level of 3.5%.
The Democratic Party has been the support base for the workers, but it was ridiculed that "the Republican Party has become the Workers' Party and the Democratic Party has become the Wealthy Party."
It would have been four years of humiliation for Mr. Biden, who served as Vice President.
I don't think I'll ever step on the same rut again, and I have a strong sense of opposition to the former Trump administration.
I think this was the basis for President Biden's ideal national image.
The challenges are piled up
100 days after the inauguration of the administration, what President Biden is trying to do has become clear.
However, there are also issues.
The public debt of the United States has exceeded 3,000 trillion yen.
The financial deterioration is ordered not only by the opposition and the Republican Party, but also by some of the ruling and Democratic centrists.
Parliamentary debate is likely to be confusing as to whether fiscal stimulus and tax increases can be achieved.
There are also concerns that the economy will overheat as a result of promoting strong fiscal and monetary policies.
Consumer price growth in March was the highest level in 8 years and 7 months, and it is necessary to be cautious about rapid inflation.
And what plagues President Biden, who emphasizes workers, is the widening economic disparity triggered by the new corona.
According to an analysis by the Federal Reserve Board of Governors, the central bank, the unemployment rate in the bottom quarter of income levels remains high at around 20%.
He points out that those who cannot benefit from the economic recovery are being left behind.
The midterm elections will be held in a year and a half.
If the Republican Party rebounds here, the political base will weaken and the national image it aims for may be destroyed.
How much "achievement" can be accumulated by then?
The true value of "bidenomics" is about to be questioned.
Washington Bureau Reporter
Yosuke Yoshitake
Joined
Nagoya Bureau in
2004
After working at the Ministry of Economic Affairs, he is currently affiliated.