Topic > Joe Biden: A Big Supporter of Keynesian Economics

With the 2020 presidential election about a year away, political parties and their presidential candidates are trying to increase their popularity ahead of the election. Some of the Democratic Party's leading presidential candidates include Michael Bennet, Joe Biden, Cory Booker, Bernie Sanders, and Andrew Yang. On the other hand, Donald Trump has only four competitors from the Republican Party: Roque De La Fuente, Mark Sanford, Bill Weld and Joe Walsh. This essay will primarily focus on Joe Biden's proposals along with comparisons with those of his opponents. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay First, Joe Biden, former vice president during the Obama administration, believes that increasing the educated workforce will be beneficial to the economy. He proposed making two-year community colleges free for qualified students in order to boost GDP. If the quality of the workforce increases, GDP will eventually increase due to greater efficiency and higher pay for their skills. Biden also believes that an increase in the tax rate would be beneficial to the population. He wants to raise taxes and use that money to invest in America's healthcare system. From Joe Biden's speech at the World Economic Forum in Davos, Switzerland, in 2017, he mentioned "implementing a progressive and fair tax system where everyone pays their fair share," meaning taxpayers will pay taxes based on their income (Biden 2017). This is a very Keynesian point of view because Biden wants to raise taxes and use that money for healthcare which is a public service; and in Keynesian economics, if taxes were used on public services, aggregate spending would increase, which would lead to more jobs and benefits for families. By definition, if taxes are raised to increase government spending on goods and services by the same amount, the economy will expand. This also means that the production possibilities frontier (PPF) curve will shift outward. As mentioned above, Joe Biden wants to raise taxes, he wants a “pro-growth” tax code. In the October 2019 Democratic debate, Biden stated, “[he] would raise the capital gains tax to the highest rate of 39.5%” (Biden 2019). Saying that millionaires should pay 39.5% of their income to taxes. This continues his Keynesian perspective, he wants to use money to cover tax loopholes so that things like Social Security and Medicare can be affordable. Previously, Joe Biden also used the current US GDP growth rate to attack Trump over fears of a recession as benefits from a previous tax cut fade and tariffs imposed on imports from China hurt manufacturers and American farmers. Unlike Joe Biden, Bill Weld of the Republican Party, who was also the Libertarian candidate for vice president, wants to cut taxes. In a recent question-and-answer session at Dartmouth College, Weld talked about what he did when he was governor of Massachusetts: “[he] cut spending, [he] cut taxes. [And] he has been ranked as the most fiscally conservative governor in the United States by the Wall Street Journal and the Cato Institute” (Weld 2019). He has a classic view on this topic, that rising taxes will shift labor supply downwards and the PPF curve will also shift inward. Weld also thinks that “No one in Washington cares about taxpayers. The Democrats want it..