It is time to modernize neoliberalism and adopt policies that promote better-paying jobs, US President Joe Biden said Thursday at the Ninth Summit of the Americas.
“We have to update our recipe from my point of view of economic growth. In my opinion, it’s time to bury the downward flowing economy.” With this phrase, the President of the White House called on businessmen in the American continent to abandon neoliberalism as an economic model.
Flow-down economics, also known as ‘slide-down’ is a theory that had a major boost during the presidency of Ronald Reagan (1981-1989), and suggests lowering corporate and upper-class taxes to stimulate investment.
Biden attacked this model, as did former President Barack Obama at the time, stating that neoliberal prescriptions generate “more inequality, less growth, less competition, and less innovation.”
“You can do any job with good wages and respect for workers’ rights,” the president defended during an event at the Summit of the Americas in Los Angeles.
The United States proposes a regional economic partnership
Regardless of the controversy surrounding the event’s guest list, the US president called on leaders of the Americas to create a new economic union to counter China’s growing economic incursions into the region.
“I will continue to work as I did when I was vice president with Barack Obama to promote trade and investment in clean energy,” Biden told colleagues in the meeting’s first plenary session.
In what he called the Americas Partnership for Economic Prosperity, Biden said his goal is to bring supply chains closer together, reform the Inter-American Development Bank, streamline investment, and put climate action “on overstatement.”
US officials have publicly accused China of pushing deals in developing countries on terms that are burdening them with more long-term debt.
With EFE and Reuters
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