Federal government must stop spending
A major economic concern facing the newly-elected Biden Administration is the significant rise in the national debt. The administration's proposed $6 trillion budget for infrastructure and a variety of social programs will lead to a serious budgetary deficit. Even given the most optimistic scenarios that Biden will be successful in raising corporate taxes and taxing the country's highest earners would still leave a budgetary shortfall of nearly $2 trillion. As a result, the federal government will be forced to borrow money in the capital market – crowding out other borrowers (ie, corporations and individuals), in the process driving up interest rates.