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)
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
Long Beach, California, forces grocers to pay $4 more per hour in ‘hero pay,’ sparking store closures https://t.co/Qe8v8e3S0q
— mzee26 (@mzee26) February 2, 2021
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.
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