Challenging Trump on economy, Biden unveils USD700B recovery plan

DUNMORE, UNITED STATES (AFP) – Joe Biden unveiled a USD700 billion plan to create jobs and invest in new technologies in an aggressive challenge to United States (US) President Donald Trump on economic policy, as the warring sides clashed in key election battleground Pennsylvania.

The Democratic challenger presented his sweeping Build Back Better proposal, a contrast to Trump’s America first agenda, during a speech at a metalworks plant in a swing state critical to either candidate’s victory in November.

Vice President Mike Pence was simultaneously barnstorming Pennsylvania, defending his boss’s handling of the coronavirus pandemic and assuring voters that Trump was best qualified to revive the sputtering economy.

Biden’s manufacturing and innovation plan aims to bring back positions lost during the coronavirus pandemic, and create more than five million new jobs by investing in domestic production and research and shrinking foreign supply chains.

The multi-pronged approach also tightens Buy America guidelines, promotes new tax rules including hiking the corporate tax rate to 28 per cent from 21 per cent, and expands union access to empower American workers.

Democratic presidential candidate Joe Biden tours a metal fabricating facility in Dunmore. PHOTO: AP

“That’s what my plan is, to build back better,” Biden told ironworkers after touring their 101-year-old factory near Scranton, the blue-collar city where the former vice president grew up.

The goal, he said, is “to sharpen America’s competitive edge” in new industries like battery technology, artificial intelligence, biotechnologies and clean energy. “That’s the future.”

Biden said he rejects the “defeatist view” that automation and globalisation will sap well-paid US jobs.

“American manufacturing was the functioning arsenal of democracy in World War II, and has to be part of the engine of new prosperity in America now,” he said.

Biden’s plan to protect American workers underscores a recognition that, despite Trump’s poor job approval numbers, voters still see him as stronger than Biden on handling the economy.

But Biden drew a sharp contrast with his billionaire rival, highlighting his working-class upbringing and even making a side-trip to his old Scranton neighbourhood.

Trump won in 2016 largely on the promise of bringing back lost manufacturing jobs.

Biden accused him of turning his back on the working class.

“Trump has simply given up,” Biden said, adding that American families are “paying the price for this administration’s incompetence”.

While the president repeatedly invokes American business as a leading force in economic revival, Biden’s plan relies on the federal government to “bolster American industrial and technological strength.” It proposes a USD400 billion investment in domestic product procurement, and USD300 billion for research and development as well as breakthrough technologies including reusable energy and electric vehicles.

“This will be a mobilisation of R&D and procurement investment in ways not seen since the Great Depression and World War II,” Biden said.