Read the story here. Advertise at Before It's News here.
Profile image
By The Pirate's Cove (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

China Joe’s COVID “Relief” Plan Could Shrink GDP Long Term

% of readers think this story is Fact. Add your two cents.

Relief is in quotes because Joe’s plan is less about helping middle America and more about hooking up Democrat states and cities, along with teacher’s unions, while killing off jobs in his attempt to placate the idiotic Fight For $15 folks (who’ll be the first ones on the pink slip line)

Biden’s COVID relief plan could shrink economic growth over long-term, study shows

Democratic lawmakers are poised to plow ahead with passing President Biden’s $1.9 trillion coronavirus relief package, a measure that will provide an immediate burst to the U.S. economy but that could drag on growth in years to come.

That’s according to a new analysis published Wednesday by a nonpartisan group at the University of Pennsylvania’s Wharton School, which found that Biden’s proposal could increase the nation’s GDP by 0.6% in 2021. But the additional public debt resulting from his measure would decrease GDP, the broadest measure of goods and services produced in a nation, by 0.2% in 2022 and 0.3% in 2040.

“The Biden relief plan leads to an increase in output in 2021 as the plan’s expenditures stimulate the economy, but GDP declines in subsequent years as the additional public debt crowds-out investment in productive capital,” the report said. “The increase in output 2021 is due to the immediate stimulative effect of the economic recovery plan.”

Unlike the $2.2 trillion CARES Act, which Congress passed last March at the beginning of the pandemic, the U.S. economy is much closer to its pre-crisis output. As a result, Biden’s $1.9 trillion plan “would generate less additional output in 2021 than it did in spring or summer of 2020 when the U.S. economy was further from potential,” the analysts said.

A goodly chunk of the money wouldn’t be actually going into the economy or relief for citizens, but, to wasteful cities and states run by Democrats. And telling people they don’t have to pay their rent, still, means less money in the economy.

For instance, Biden has made a third stimulus check — worth $1,400 — an integral part of the emergency aid package. But the Penn Wharton Budget Model estimated that 73% of check recipients would stash the money away in household savings rather than spend it. Just 27% would go to increased consumption, the analysts projected.

Would they, though? I’m not so sure they wouldn’t spend it on TVs and stuff. But, that’s short term.

“The economy is on its way to recovering,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said. “More funding is warranted to assist those out of work because of the pandemic, prevent state and local government layoffs, boost economic demand, prevent a decline in household incomes, and end this pandemic once and for all. But it shouldn’t take $1.9 trillion to fill a $400 billion or $800 billion hole.”

No, it shouldn’t.

The proposal is also expected to increase the federal minimum wage to $15 per hour, provide $400 a week in supplemental unemployment benefits through September, increase state and local government funding by $350 billion and allocate $160 billion to accelerate vaccine distribution and expand COVID-19 testing.

Giving money to irresponsible Democrat run cities and states. Instead of the $400, let’s open the freaking economy. Why expand COVID testing? It’s already pretty much available all over the place. Vaccine distribution is worthless when so many governors, especially Dem ones, are failing. $15 an hour? That will just increase unemployment.

You know what happens when you force private businesses to pay way more than the job is worth? A choice between raising prices or layoffs. Decreasing hours worked. More part timers, partly to avoid having to provide health insurance. No OT. And

Now, no pay for anyone. And areas with fewer or no grocery stores in the immediate area.

(The Hill) Manchin told The Hill earlier Tuesday that he does not support increasing the minimum wage to $15 per hour and told Fox News on Tuesday night that he didn’t think it would comply with arcane Senate rules that determine what can be passed under reconciliation.

Manchin is saying he’s a “no” vote on Biden’s COVID bill, and dead seat against reconciliation. Which would scuttle the entire thing unless a Republican goes squishy.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.