According to economist Nova Smith, the new US government’s full-scale fiscal stimulus is the first reminder of Franklin Delano Roosevelt. However, while the duties are similar, the current president is in a different position, the economist believes there are repercussions.
Biden’s plans are in many ways a reminder of the so-called New Deal, which includes new roads, bridges, Living, Wheels and substation. The FDR has also spent a lot of money in these areas, and if Fiden implements his changes, he will change the way he looks at the country and leave new buildings and the living standards of the poor. Like the FDR, Biden is trying to support the unions, and Smith believes his policies could reverse the long-term trend of deepening economic inequality.
According to the economist, Biden only has these similarities with another economic reality than his predecessors. First, it is true that the current economic climate has not given rise to a major recession. The epidemic did not lead to the collapse of the financial system and did not provoke waves of distrust in society. On the contrary, there seems to be a strong economic boom.
Thanks to the limited decline in overall demand, Biden does not have to switch to financial activities with high proliferation. Thanks to the fact that there is no gold standard and that the central bank is prepared to cut rates to zero, the new US president will not have to deal with even tight financial conditions. Finally, not least, according to the economist, I have the best economic data and the best overview of what works and what does not.
According to Smith, the creators of the new deal mainly worked with data on prices and products, so these variables are particularly trying to influence their policies. Price limits and similar tools are not the only very effective tools. Biden, on the other hand, attracts economic research, according to which two people are more talented than two, and according to Smith, this is why he loves them.
The economist, however, is that in the field of innovation, Biden is, in a sense, not FDR. Although he was very depressed, many discoveries and innovations took place in the American economy. Conversely, the trend slows the pace of productivity growth. So in the competition Parties Other countries and especially ny. With the shift of the center of economic activity to Asia, Fiden does not have the luxury of coping with the fact that the United States will produce what you need, Smith.
Thus the FDR sought primarily to reflect and revitalize the US economy, while Biden again focused on reducing productivity and competition pressure. FDR has changed the structure of the US economy, but it is also caused by accidents and factors related to World War II wolf. Biden has to fill in, the closest economist.