United States: resumption of parliamentary discussions on economic reforms
The various parliamentary committees have until September 15, 2021 to present the precise content of Joe Biden's economic reforms.
© REUTERS - TOM BRENNER
Text by: RFI Follow
1 min
Discussions resume in the US Congress on Thursday about Joe Biden's economic reforms.
There are two plans that the US president keeps touting.
That for infrastructure, of $ 1,200 billion and that for social spending, known as the reconciliation plan, of $ 3,500 billion.
Two plans and two pitfalls: divisions between Democratic parliamentarians and paying the bill
Advertising
Read more
With our correspondent in Washington,
Guillaume Naudin
It is a letter from Treasury Secretary Janet Yellen that raises the alarm.
At the current rate of spending, the United States will hit the debt ceiling in October and will struggle to honor its commitments.
This falls badly as Democrats scramble for cash to fund their plans.
When you can no longer borrow, there are two solutions.
The first is to increase taxes.
No question for Joe Biden, at least for the middle classes.
On the other hand, he would gladly dig into the pockets of large companies and the
richest
who do not hear it that way and are currently using all the levers of lobbying to avoid it.
Pause
The second way out is to limit spending.
That's the idea of West Virginia Democratic Senator Joe Manchin, whose voice is vital to pushing through these reforms.
He wants to press the pause button and limit the social plan to 1.5 trillion dollars.
He is not the only one.
The so-called moderate Democratic parliamentarians fear the consequences on debt and inflation.
But for the most liberal, the $ 3.5 trillion promised by
Joe Biden
is already a compromise.
One of theirs, House of Representatives Speaker Nancy Pelosi, would like an agreement before the end of the month.
Discussions to achieve this promise to be interesting.
► To read also: United States: the Senate approves the vast infrastructure plan of Joe Biden
Newsletter
Receive all international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_FR
United States
Economy
Finance
Joe biden