Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/1132/32451

From The Socialist newspaper, 5 May 2021

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.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • We must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
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:

triangleLondon protest for Texas abortion rights

triangleTories plunge millions further into poverty

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

The Socialist:

triangle"Are you the socialist cabby?"

triangleCynical Johnson government no friend of workers

triangleCaerphilly and RCT Socialist Party: How the Socialist Party campaigns

Socialist:

triangleSocialist Party Scotland: Socialist change to end climate change

triangleFighting the cuts at the ballot box in Liverpool

trianglePeople's Budgets - a socialist answer to cruel cuts

Economy:

triangleCamden Socialist Party: The economy - will inflation become a problem again?

triangleCapitalism's economic instability in the 'new normal'

USA:

triangleWe don't want a USA-style healthcare system

International

International

20/10/21

Austria

Austria: Chancellor Kurz resigns amid allegations of corruption

6/10/21

US

London protest for Texas abortion rights

29/9/21

Election

German election: A change of capitalist government, but disaster for Die Linke

29/9/21

Climate change

CWI livestream rally report

22/9/21

Germany

German general election

8/9/21

Libya

Libya - ten years after Gaddafi's overthrow

8/9/21

US

US Supreme Court refuses to challenge Texas abortion ban

8/9/21

US

Keep fascists out of Portland: Build a mass movement to fight the right

25/8/21

Lebanon

Reflections on the Lebanese tragedy one year on

25/8/21

Scotland

SNP-Green deal will not deliver for workers and youth

25/8/21

Nigeria

Nigeria: Comrade Omomeewa, student leader and socialist campaigner, killed by armed assailants

25/8/21

Afghanistan

Afghanistan in crisis:

25/8/21

Afghanistan

Afghanistan: The Taliban takeover - what are the lessons for the workers' movement internationally

11/8/21

Capitalism

Beirut's devastating port explosion one year on

28/7/21

Workers

In brief: News, reports & analysis from the CWI

triangleMore International articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 075 4018 9052

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 077 7221 5281

West Mids: 024 7655 5620

Yorkshire: 078 0983 9793

ABOUT US

ARCHIVE

Alphabetical listing


October 2021

September 2021

August 2021

July 2021

June 2021

May 2021

April 2021

March 2021

February 2021

January 2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999