Joe Biden– “Crisis of deep human suffering is in plain sight”
President-Elect Joe Biden released a $1.9 trillion stimulus plan “American Rescue Plan” to help Americans fight the pandemic due to severe policy missteps by the Trump administration. The plan is a holistic attempt to bring back America creating 18 million good-paying jobs. The pandemic knocked out ~4,00,000 small businesses severely impacting the underprivileged and marginalized community creating socio-economic inequalities. The top 1% wealthy in the US made $1.5T in the last year alone increasing racial inequality and social unrest. The unemployment rate peaked at a whopping 14.8% before coming down to 6.7%. This resulted in about 18 million Americans living on unemployment insurance causing one of the worst economic and health crises for the US. The plan will bring ~12 million people out of poverty, address the looming housing crisis, invest $50 billion in a massive expansion of testing for COVID-19, provide funds for the purchase of rapid tests, labs among others. The plan has a $50 billion support for small businesses and a $16.1 billion relief fund for public transportation most affected by the novel coronavirus. Economic Impact Payments, the largest section of the plan comprises ~22.37% of the American rescue plan taking the much-needed stimulus cheques to $2000 per person from the present $600.
Pic Source : Unsplash | Sue Carroll
The plan is more focused on demand-driven economics although Mr. Biden also laid out his long-term focus on infrastructure, manufacturing, focus on R&D under the widely awaited Recovery Plan. If American Rescue Plan is included, the fiscal stimulus for the pandemic runs to $5.2T nearly 25% of the 2019 GDP for the US. This is huge. The middle Road is coming out with a thought-provoking publication on this subject. It will include recommendations like cutting 10 to 15% of the defense budget (none of the major disasters have come as a result of the war on the US example WTC attack, pandemic, etc.), an increase in taxation for the wealthy, etc. America has a ~$2T student debt crisis looming as well.