Politics
Visualizing Biden’s $1.52 Trillion Budget Proposal for 2022
Visualizing Biden’s Budget Proposal for 2022
On April 9th, President Joe Biden released his first budget proposal plan for the 2022 fiscal year.
The $1.52 trillion discretionary budget proposes boosts in funding that would help combat climate change, support disease control, and subsidize social programs.
This graphic outlines some key takeaways from Biden’s budget proposal plan and highlights how funds could be allocated in the next fiscal year.
U.S. Federal Budget 101
Before diving into the proposal’s key takeaways, it’s worth taking a step back to cover the basics around the U.S. federal budget process, for those who aren’t familiar.
Each year, the president of the U.S. is required to present a federal budget proposal to Congress. It’s usually submitted each February, but this year’s proposal has been delayed due to alleged issues with the previous administration during the handover of office.
Biden’s publicized budget only includes discretionary spending for now—a full budget that includes mandatory spending is expected to be released in the next few months.
Key Takeaways From Biden’s Budget Proposal
Overall, Biden’s proposed budget would increase funds for a majority of cabinet departments. This is a drastic pivot from last year’s proposal, which was focused on budget cuts.
Here’s a look at some of the biggest departmental changes, and their proposed spending for 2022:
| Department | 2022 Proposed Spending (Billions) | % Change from 2021 |
|---|---|---|
| Education | $29.8 | 41% |
| Commerce | $11.4 | 28% |
| Health and Human Services | $131.7 | 24% |
| Environmental Protection Agency | $11.2 | 21% |
| Interior | $17.4 | 16% |
| Agriculture | $27.8 | 16% |
| Housing and Urban Development | $68.7 | 15% |
| Transportation | $25.6 | 14% |
| Labor | $14.2 | 14% |
| State and International Aid | $63.5 | 12% |
| Treasury | $14.9 | 11% |
| Energy | $46.1 | 10% |
| Small Business Administration | $0.9 | 9% |
| Veteran Affairs | $113.1 | 8% |
| Justice | $17.4 | 5% |
| Defense | $715.0 | 2% |
One of the biggest boosts in spending is for education. The proposed $29.8 billion would be a 41% increase from 2021. The extra funds would support students in high-poverty schools, as well as children with disabilities.
Health and human services is also a top priority in Biden’s budget, perhaps unsurprisingly given the global pandemic. But the boost in funds extends beyond disease control. Biden’s budget allocates $1.6 billion towards mental health grants and $10.7 billion to help stop the opioid crisis.
There are increases across all major budget categories, but defense will see the smallest increase from 2021 spending, at 2%. It’s worth noting that defense is also the biggest budget category by far, and with a total of $715 billion allocated, the budget lists deterring threats from China and Russia as a major goal.
Which Bills Will Make it Through?
It’s important to reiterate that this plan is just a proposal. Each bill needs to get passed through Congress before it becomes official.
Considering the slim majority held by Democrats, it’s unlikely that Biden’s budget will make it through Congress without any changes. Over the next few months, it’ll be interesting to see what makes it through the wringer.
Economy
The Bloc Effect: International Trade with Geopolitical Allies on the Rise
Rising geopolitical tensions are shaping the future of international trade, but what is the effect on trading among G7 and BRICS countries?
The Bloc Effect: International Trade with Allies on the Rise
International trade has become increasingly fragmented over the last five years as countries have shifted to trading more with their geopolitical allies.
This graphic from The Hinrich Foundation, the first in a three-part series covering the future of trade, provides visual context to the growing divide in trade in G7 and pre-expansion BRICS countries, which are used as proxies for geopolitical blocs.
Trade Shifts in G7 and BRICS Countries
This analysis uses IMF data to examine differences in shares of exports within and between trading blocs from 2018 to 2023. For example, we looked at the percentage of China’s exports with other BRICS members as well as with G7 members to see how these proportions shifted in percentage points (pp) over time.
Countries traded nearly $270 billion more with allies in 2023 compared to 2018. This shift came at the expense of trade with rival blocs, which saw a decline of $314 billion.
Country Change in Exports Within Bloc (pp) Change in Exports With Other Bloc (pp)
🇮🇳 India 0.0 3.9
🇷🇺 Russia 0.7 -3.8
🇮🇹 Italy 0.8 -0.7
🇨🇦 Canada 0.9 -0.7
🇫🇷 France 1.0 -1.1
🇪🇺 EU 1.1 -1.5
🇩🇪 Germany 1.4 -2.1
🇿🇦 South Africa 1.5 1.5
🇺🇸 U.S. 1.6 -0.4
🇯🇵 Japan 2.0 -1.7
🇨🇳 China 2.1 -5.2
🇧🇷 Brazil 3.7 -3.3
🇬🇧 UK 10.2 0.5
All shifts reported are in percentage points. For example, the EU saw its share of exports to G7 countries rise from 74.3% in 2018 to 75.4% in 2023, which equates to a 1.1 percentage point increase.
The UK saw the largest uptick in trading with other countries within the G7 (+10.2 percentage points), namely the EU, as the post-Brexit trade slump to the region recovered.
Meanwhile, the U.S.-China trade dispute caused China’s share of exports to the G7 to fall by 5.2 percentage points from 2018 to 2023, the largest decline in our sample set. In fact, partly as a result of the conflict, the U.S. has by far the highest number of harmful tariffs in place.
The Russia-Ukraine War and ensuing sanctions by the West contributed to Russia’s share of exports to the G7 falling by 3.8 percentage points over the same timeframe.
India, South Africa, and the UK bucked the trend and continued to witness advances in exports with the opposing bloc.
Average Trade Shifts of G7 and BRICS Blocs
Though results varied significantly on a country-by-country basis, the broader trend towards favoring geopolitical allies in international trade is clear.
Bloc Change in Exports Within Bloc (pp) Change in Exports With Other Bloc (pp)
Average 2.1 -1.1
BRICS 1.6 -1.4
G7 incl. EU 2.4 -1.0
Overall, BRICS countries saw a larger shift away from exports with the other bloc, while for G7 countries the shift within their own bloc was more pronounced. This implies that though BRICS countries are trading less with the G7, they are relying more on trade partners outside their bloc to make up for the lost G7 share.
A Global Shift in International Trade and Geopolitical Proximity
The movement towards strengthening trade relations based on geopolitical proximity is a global trend.
The United Nations categorizes countries along a scale of geopolitical proximity based on UN voting records.
According to the organization’s analysis, international trade between geopolitically close countries rose from the first quarter of 2022 (when Russia first invaded Ukraine) to the third quarter of 2023 by over 6%. Conversely, trade with geopolitically distant countries declined.
The second piece in this series will explore China’s gradual move away from using the U.S. dollar in trade settlements.
Visit the Hinrich Foundation to learn more about the future of geopolitical trade
-
Economy1 day agoEconomic Growth Forecasts for G7 and BRICS Countries in 2024
The IMF has released its economic growth forecasts for 2024. How do the G7 and BRICS countries compare?
-
United States2 weeks agoRanked: The Largest U.S. Corporations by Number of Employees
We visualized the top U.S. companies by employees, revealing the massive scale of retailers like Walmart, Target, and Home Depot.
-
Economy2 weeks agoWhere U.S. Inflation Hit the Hardest in March 2024
We visualized product categories that saw the highest % increase in price due to U.S. inflation as of March 2024.
-
Economy4 weeks agoG20 Inflation Rates: Feb 2024 vs COVID Peak
We visualize inflation rates across G20 countries as of Feb 2024, in the context of their COVID-19 pandemic peak.
-
Economy1 month agoMapped: Unemployment Claims by State
This visual heatmap of unemployment claims by state highlights New York, California, and Alaska leading the country by a wide margin.
-
Economy2 months agoConfidence in the Global Economy, by Country
Will the global economy be stronger in 2024 than in 2023?
-
Mining1 week agoGold vs. S&P 500: Which Has Grown More Over Five Years?
-
Markets2 weeks agoRanked: The Most Valuable Housing Markets in America
-
Money2 weeks agoWhich States Have the Highest Minimum Wage in America?
-
AI2 weeks agoRanked: Semiconductor Companies by Industry Revenue Share
-
Markets2 weeks agoRanked: The World’s Top Flight Routes, by Revenue
-
Countries2 weeks agoPopulation Projections: The World’s 6 Largest Countries in 2075
-
Markets2 weeks agoThe Top 10 States by Real GDP Growth in 2023
-
Demographics2 weeks agoThe Smallest Gender Wage Gaps in OECD Countries