Biden hails financial report, warns in opposition to Republican return to ‘trickle-down economics’

By Andrea Shalal

WASHINGTON (Reuters) -U.S. President Joe Biden touted his administration’s financial report and warned in opposition to a reprise of Republican “trickle-down economics” throughout Donald Trump’s second time period in what might be his last speech on the economic system at Washington’s Brookings Establishment on Tuesday.

In his speech, which comes a month after bruising election defeats for the Democrats pushed by voters’ considerations about inflation, Biden argued that his push to spice up investments in infrastructure, manufacturing and uncared for communities averted an even bigger financial disaster and laid the groundwork for continued progress.

“Most economists agree the brand new administration goes to inherit a reasonably robust economic system,” Biden mentioned. “It’s my profound hope that the brand new administration will protect and construct on this progress.”

Biden boasted that his administration had embraced a brand new method after many years of trickle-down economics that benefited rich Individuals first, and now could be rising the economic system from “the center out and the underside up” to the benefit of the center class. 

He acknowledged that American employees have been nonetheless combating inflation and excessive housing costs.

Biden highlighted the creation of 16 million jobs, essentially the most in any single presidential time period, the bottom common unemployment of any administration in 50 years, and the smallest racial wealth hole in 20 years.

He faulted Trump’s first administration for failing to develop a plan to cope with the COVID-19 pandemic, including that Republican strikes to slash taxes, offshore jobs and destroy unions had put the economic system in a tough spot and worsened the U.S. fiscal outlook.

Biden cautioned in opposition to extra tax cuts for the rich and companies within the second Trump time period, and mentioned Trump’s pledge to impose tariffs on abroad items might represent a “main mistake.” He added that he thought Trump would have hassle ending investments made underneath his administration, since they benefited many Republican-led states as properly Democratic-led ones.

The speech echoed Biden’s message all through his aborted 2024 election marketing campaign, which was continued by Vice President Kamala Harris after he dropped out, though neither was capable of win over voters scarred by excessive meals and housing costs.

Regardless of the power of main financial indicators and a drop in inflation from a peak of 9% greater than two years in the past to 2.4%, voters punished the Democrats and handed the Republicans the White Home and management of each the U.S. Senate and Home of Representatives.

Funding banks anticipate Trump’s return to the White Home to gasoline a dealmaking revival that would increase funding banking revenue to $316 billion globally subsequent 12 months, a bounce of about 5.7% over 2024. However economists warn that the Republican’s pledge to impose excessive tariffs might reignite inflation whereas additional tax cuts might swell the already excessive U.S. deficit.