Wide screen devices may view this page better by clicking here

5 May 2021

Facebook   Twitter

Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Biden's policies will not solve underlying US crisis

After Biden's speech to the US Congress on 28 April, below is an edited extract from 'An era of capitalist turmoil', a statement from the Committee for a Workers' International, the international organisation which the Socialist Party is affiliated to.

Joe Biden, photo Michael Stokes/CC

Joe Biden, photo Michael Stokes/CC   (Click to enlarge)

Joe Biden's election as US president has opened a new chapter in the crisis in US imperialism. His victory has already resulted in important changes in domestic and international policy. This change of course has led to an increase in support for him and will result in a certain honeymoon period.

However, this will not last indefinitely, as his programme will not solve the underlying social and class polarisation which has opened in US society. The economy is still ten million jobs short of its pre-pandemic peak. 50% of households earning less than $35,000 a year have fallen behind in housing payments. 25% of them report not having enough food.

The stimulus package of $1.9 trillion, followed by a proposed $2 trillion investment programme on infrastructure projects, will have an effect and are very popular at this stage. Biden is now also proposing an additional package, the 'American Families Plan', worth about $1.8 trillion.

According to the New York Times, a working single mother of a three-year-old earning the federal minimum wage of approximately $16,000 a year could gain $4,775 from the bill. Workers employed on federal infrastructure projects would be paid a minimum wage of $15 an hour.

Yet as the economist Nouriel Roubini calculates, of the $1,400 direct payment already sent to US citizens, only one-third will find its way back into the economy due to accumulated debt and housing payment arrears. This will, of course, reduce debt, but may not lead to an immediate substantial and lasting boom for the economy.

Biden's infrastructure programme is largely to expand existing projects, to be paid for by an increase in corporation tax from 21% to 28%. This has provoked protests from some sections of the ruling class. Yet even this is far below the historic levels of corporation tax post-1945 which were frequently over 50%! Trump reduced the rate to 21% from 35%, which is where it was under Obama.

However, Biden's measures will have some effect. They may be followed by further stimulus packages. The ruling class and Biden have been driven in this direction by the objective situation they confront. Yet they will not resolve the underlying crisis in US society.

Even Roosevelt's New Deal was not sufficient to prepare the way for the huge economic upswing which followed the Second World War. This developed because of the massive armaments programme needed during the war and the situation internationally which followed it.

The ruling class in the USA will face a further political crisis as illusions in Biden eventually wane and new struggles emerge.

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 


In The Socialist 5 May 2021:


What we think

Capitalist sleaze and cronyism


Union elections

Unite general secretary election nomination stage

Unison: We need a fighting, democratic, member-led union to stop the austerity attacks

Four Socialist Party members elected to NEU executive - a thirst for action and a fighting leadership


International news

Biden's policies will not solve underlying US crisis

Colombia: Mass trade union-led protests force tax retreat


Mental health

Covid, capitalism and mental health


News

Fight the rotten establishment

Hands off our NHS

New law ignores economic barriers to escaping domestic abuse

Cladding: Tories refuse to protect leaseholders again


Workplace news

St Mungo's strikers fight on

Goodlord strike forces talks - solidarity needed

Sparks block Cardiff building site against deskilling

Vote 'yes' in the PCS DWP ballot

Beal High School strike against sick policy resumes

Go Ahead offers deal to Manchester bus drivers

Metroline buses to face summer of strikes unless it drops 'remote sign-on'


Local government

Can the 'Preston model' beat the cuts?


Campaigns news

Bellway must pay! Make our homes safe!

Police attempt to intimidate Newcastle protesters

Nottingham NHS pay protest

Establishing factory sales of the Socialist in Leicester

Plaque dedicated to Tony Mulhearn

Why you should join the Socialist Party

Defend the right to protest - to resist bosses' attacks


Readers' opinion

The Socialist Inbox


 

Home   |   The Socialist 5 May 2021   |   Join the Socialist Party

Subscribe   |   Donate   |   Audio  |   PDF  |   ebook






Related links:

US:

triangleYorkshire Youth Fight for Jobs relaunched

triangleNuclear Folly: A New History of the Cuban Missile Crisis

triangleGoodlord dispute: Labour's leadership weasled out of backing strike action

triangleOn the frontline, and still fighting for the NHS

triangleDeaths of despair: Health crisis - capitalism in the dock

The Socialist:

triangleSocialists and the four-day week

triangleLeeds Socialist Party: What the Socialist Party stands for

triangleWe need a new political party for workers and youth

triangleWhy I joined the Socialist Party

Socialist:

triangleUnemployment, low pay, rip-off uni fees, climate change... Join the fight for Socialism

triangleLeeds Socialist Party: Afghanistan

triangleLeeds Socialist Party: What is "Youth Fight for Jobs?"

Economy:

triangleSocialists and the four-day week

triangleTax fraud could be over 20 billion annually

USA:

triangleWe don't want a USA-style healthcare system

Article dated 5 May 2021

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

MEMBER RESOURCES

Pay in Fighting Fund

Pay in paper and book sales

Leaflets

Bulk book orders

New member submission

WHAT'S ON

triangle26 Sep Martin Powell-Davies for National Education Union DGS

triangle27 Sep Leeds Socialist Party: The Transitional Programme

triangle29 Sep Hackney & Islington Socialist Party: Brazil and Latin America

More...


The Socialist, weekly newspaper of the Socialist Party

Subscribespacer|spacerebook / Kindlespacer|spacerPDF versionspacer|spacerText / Printspacer|spacer1148 onlinespacer|spacerBack issuesspacer|spacer Audio files


CWI rally, Sunday 26 September 2021, 14-00. Youtube.com/CWImedia

A CWI rally, Sunday 26 September 2021, 14-00. Youtube.com/CWImedia

What We Stand For
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Platform setting: =

Desktop version