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Debt from Clinton to Biden goes around debts, trade, and so on

WASHINGTON (AP) – When Bill Clinton talked about how to build a bridge to the 21st century, it had to be built with balanced budgets, well-to-do recipients who had found work to expand world trade.

Three decades later, President Biden is dealing with the harsh realities of the 21st century; his approach was just the opposite. Borrow to stimulate growth by providing state aid without providing employment assistance և Return global supply chains to the United States.

This change in democratic democracy reflects unique epidemic crises, such as decades of trends, such as rising economic inequality, declining interest rates, easing borrowing, and the pitfalls of globalization as factories move away from the Middle East. White House aides compare Biden’s political ambitions to those of Franklin Delano Roosevelt after the Great Depression.

All of these factors were combined in Biden’s $ 1.9 trillion aid package, which his administration is now selling to nationwide voters. And even bigger projects are still awaited for the infrastructure և employee investment package that Biden is likely to present in a speech in Pittsburgh on Wednesday.

“The underlying goal of how to deepen, expand, and secure America’s middle class has changed over time,” said Heather Bush, a member of the White House Economic Advisory Board. “What happened in 2020 was this huge masking of all the fragility and vulnerabilities of our economy.”

Biden’s $ 4 trillion bailout package, already approved for the fight against coronavirus, is an effort to strengthen the social security network that many in her own administration have helped sew during her second term in office.

White House Chief of Staff Ron Klein held the same position for Clinton Vice President Al Gore. Secretary of the Treasury Ethanet Yellen was Clinton’s chief economist. Gene Sperling, who oversaw the bailout, was then director of the National Economic Council. Deputy Chief of Staff Bruce Reed has been chairman of the Clinton Home Policy Council.

At the time, the Clinton administration seemed to have found a winning resolution. ” 1996 The overhaul of the welfare campaign during the re-election campaign was designed to eliminate welfare as a right to relocate aid recipients to jobs, while globalization allowed employers to make more profit.

“We are beginning a new century full of great opportunities,” Clinton said as she accepted the Democratic nominee that year in her “Bridge to the 21st Century.” “We must give the American people the tools they need to make the most of their God-given potential. We need to make the basic deal of opportunity and responsibility available not just to the few but to all Americans. ”

The US economy seemed to be sound after Clinton was re-elected. Record high percentages of American employees. By 2000, the federal budget had a budget surplus of $ 236 billion. American companies could reach new markets through trade agreements և China’s entry into the World Trade Organization.

But the stock bubble in Internet companies exploded when the Clinton era ended. The factories quickly moved to China, while training support for the new unemployed was provided in full. The seeds of inequality became apparent after house prices rose in the following years, then fell, causing a financial crisis in 2008, followed by a catastrophically slow recovery.

Democratic voters have also evolved since the height of Clintonism in the 1990s. They became more diverse, more likely to get a college education, more likely to live in richer cities or suburbs. That progress was easily ignored until 2016, when Donald Trump won a presidential election with a promise to cancel business deals, announcing that the government had tightened its grip on society and promised to return the country to its former blue identity.

“It happened without the Democrats pursuing their policies until Trump came, he was an alarm,” said Elaine Kamark, a senior fellow at the Brookings Institution, who served in the Clinton White House. “Democrats were slow to realize that, but Biden was not. “Biden was probably the best at it.”

Selinda Lake polled both Clinton and Biden. Clinton, relatively young, was 46 when she became president, the first midwife to take over the leadership of the nation. On the contrary, the child boomers practically grew up with Biden in one office or another. An experienced A-time hand, he spent 36 years in the Senate and eight as Vice President of Barack Obama.

“It was a reverse choice from the point of view of leadership. “In 1992, they moved on to the next generation, something new.” “In 2020, they became a stable leader.”

At 78, Biden may recall an older Democrat who believed that big government was not a bad thing. The child tax credits in his help package allow help to flow to families without making work demands. His $ 1,400 direct checks go to each partner who earns $ 150,000, effectively expanding the social security network beyond the poor to 158.5 million households.

The epidemic is financed entirely by debt, which has been made possible by historically low interest rates. Despite rising national debt since the Clinton presidency, the federal government spent less of its gross domestic product on debt service than it did during the Clinton era. This has so far made it possible for the government to borrow so much money, although long-term debt pressures remain.

The Biden administration is now challenging China, which has never embraced the values ​​of democracy, as trade advocates once thought. The White House has made it a priority to ensure a steady supply of vital US goods, such as computer chips, increasingly dominated by China. Chip shortages are suffocating auto manufacturing around the world, making it a threat to US manufacturing jobs.

Robert Lawrence, a professor at Harvard University who served on Clinton’s board of economic advisers, doubts that jobs at the plant could all be returned as automation has transformed the economy. But he sees the Biden administration pursuing a new policy of helping workers.

“If you think about Biden, we’re going to be back in big government, we’re going to be back in the middle class, which includes the middle class,” Lawrence said. “These are truly revolutionary changes.”

Al From, the founder and former chief executive of the Central Democratic Leadership Council, said the Clinton era would help workers, a time when prosperity was addictive, and investors viewed US debt as exaggerated. Even if Biden’s policies seem to break that era, the values ​​are the same.

“You have a policy that seeks to achieve the same goals,” Frow said. “They may be different, but they are in line with the long-term principles of the Democratic Party.”


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