President Joe Biden outlined his plan Wednesday for growing the economy by shifting away from the top-down approach of trickle-down economics.
He criticized the theories of economic liberalism and laissez-faire, dismissing the idea that tax cuts for the wealthy and corporations would benefit the middle class.
Tax cuts for the wealthy and big corporation totaled $2 trillion dollars during the Trump administration, Biden said during a speech in Chicago.
“The trickle-down approach failed the middle class [and] weakened our infrastructure,” the president said.
The stock market barely reacted to Biden’s comments, with the SPDR S&P 500 ETF Trust (NYSE:SPY) holding steady for the day.
Biden Highlights Investment, Competition, and Climate Security
Biden emphasized the importance of making investments in America, improving the middle class, promoting competition and addressing climate security.
The U.S. needs to move away from trickle-down economic policies that have shifted products overseas, and instead focus on empowering American workers and strengthening the supply chain, he said.
“Moving from trickle-down economics to Bidenomics — it’s the plan,” Biden said.
Climate change is one of the key points in Biden’s agenda.
“Solar power is here. Coal is not efficient anymore,” Biden said, highlighting how, on the first day of his presidency, he signed the U.S. on to join the Paris Climate Agreement.
Unemployment is below 4% for the longest period in American history, and job satisfaction is at the highest ever, a condition that is empowering American workers, he said.
Biden On Tax Inequality
Biden criticized the U.S. tax structure, particularly the taxation of the rich and big corporations. He advocated for what he said is a fairer tax policy.
Biden pledged to eliminate tax loopholes for cryptocurrency and hedge funds, and said no billionaire should have a lower tax rate than a teacher, a firefighter or a cop.
“There were 750 billionaires before the pandemic, and now there are 1,000. They pay a federal tax rate of 8%.”
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Edited by Arnab Nandy