New Round of US Stimulus Plan Ends “Red Envelope” Target of $ 600 Per Capita

Original Caption: New Round of US Stimulus Plan Ends, Target “Red Envelope” Per Capita is $ 600

After months of negotiations, the United States Congress finally agreed on a new round of a $ 900 billion economic stimulus bill.

On the afternoon of December 20 local time, United States Senate Majority Leader Mitch McConnell (Mitch McConnell) said that all outstanding issues had been resolved. “We finally have the bipartisan breakthrough this country needs.” McConnell in the SenatemeetingShang said: “Now we have to finalize the text quickly, avoid any impediments at the door and cooperate to promote the passage of this legislation through the Senate and the House of Representatives.”

Speaker of the US House of Representatives Nancy Pelosi and Senate Minority Leader Chuck Schumer said the deal may be “far from perfect” but after President-elect Biden takes office on January 20 of next year, they will. Promote more aid spending soon.

According to US media reports, this deal includescompanyProvide over $ 300 billion in assistance, provide $ 600 in checks for most people in the United States, and extend the issuance of $ 300unemploymentAid and support funds for the distribution of vaccines, as well as funds for education, child care and housing.

U.SaccountingThe plan is to link this deal to the $ 1.4 trillion government appropriations bill for fiscal year 2021, with the latter’s deadline originally set at 12:01 a.m. ET Monday (13 : 01 noon, December 21, Beijing time). Congress is currently trying to temporarily postpone this deadline by one day to avoid a government shutdown and allow time to vote on aid and appropriation bills.

Zhu Min, Dean of the National Institute of Finance at Tsinghua Universityto acceptA reporter for China Business News said in an interview that America’s fiscal policy is based primarily onUnemployed benefitsAnd sustain the companyjob,grantemployeesalaryTo support people, aid is also sent directly to people, greatly promoting personal consumption and sustaining economic growth. However, the government has limited financial resources and cannot support it without restrictions.

“From now on, on the one hand, we must continue to reduce the amount of direct support for existing personal consumption, because there is no capacity or space; but at the same time, the government must continue to do so, because it must prevent the sharp drop in consumption affect the macroeconomy. The economy, I am afraid that when there is no income, the quality of life of grassroots people will deteriorate. At the same time, more fiscal policiessupplySupport the companyReorganization, Help capable companies to get out of difficulties and structural transformation. Zhu Min said.

　　What does the agreement include?

According to the “Washington Post” report, the two sides have finalized key economic relief measures, but the current legislative text is still being drafted.

In terms of direct payment, the government will provide each adult and child with a stimulus check for $ 600, which means that a family of four will receive $ 2,400 (approximately 15,683 yuan).RMB) Subsidies. According to relevant reviewers, compared to the “CARES” bill passed in March this year, the relief received by people with incomes over $ 75,000 in 2019 will be reduced, and those with annual incomes over $ 99,000 will not receive any direct payment. .

Congress will also extend theUnemployed benefitsThe deadline is up to $ 300 per week. This can start on December 27 at the earliest and extend for up to 11 weeks, which will cover March 14.contractThe unemployment benefit plan for temporary workers and workers will also expire at the end of the year, and the unemployment benefit for these workers will also be extended by 11 weeks. If Congress fails to act, 12 million Americans could lose unemployment assistance after Christmas. Currently, more than a third of the unemployed nationwide have been unemployed for 27 weeks or more.

Furthermore, on the question of whether to provide assistance to state and local governments, which was at an impasse between the two parties, the negotiating parties finally agreed to extend the timeframe for state and local governments to use the unspent funds under the bill “CARES” for a full year. During the epidemic, the tax revenues of many local governments in the United States were drastically reduced.

With respect to companies, the two parties agreed that companies that have accepted loans from the Wage Protection Program and are exempt from loans canBonnerThe tax return deducts the expenses covered by these loans. The stimulus plan is expected to invest up to $ 330 billion in assistance for small businesses. “We need to make sure that small businesses across the country get the assistance they need from the federal government,” said Neil Bradley, policy director for the US Chamber of Commerce. “If the two sides cannot agree on temporary and specific relief measures, it can cause permanent losses to tens of thousands of small businesses, financial hardship for millions of Americans, and unnecessary delays in fighting the new crown.”

This agreement will also invest critical funds for the distribution of the new corona vaccine approved by the US Food and Drug Administration. Schumer stated that the bill would invest US $ 30 billion directly in the procurement of vaccines andDistributionIn. The deal will also invest US $ 82 billion in schools and universities.

Additionally, the agreement will extend the moratorium on evictions due at the end of this year by one month through January 2021, and provide tenants with approximately $ 25 billion in emergency assistance.

　　The American economy sends a signal

The number of infections and deaths in the United States has reached record levels, with the number of new cases exceeding 1 million per week for 5 consecutive weeks.During the months of vaccination, the continued spread of the epidemic can affect health andnational economyContinue to cause some damageAnalystExpected in the first quarter of 2021GDPThere will be shrinkage.

According to an analysis of existing census data by economists at the University of Chicago and the University of Notre Dame, since June, about 7.8 million Americans have fallen into poverty due to the failure of the previous round of poverty measures. help. In November, the US poverty rate was estimated to have risen by 2.4 percentage points, nearly double the largest annual increase since the 1960s.insuranceIn states with more limited welfare, the poverty rate is the one that has increased the most.

Also, last week’s governmentreportIt shows that US retail sales fell much more than expected in November, with the latest weekly jobless claims rising to the highest level in three months. According to data from payment transaction data provider Facteus, consumers anddealSpending on services has been reduced by approximately 20% compared to the previous year. Data from the OpenTable restaurant reservation platform shows that the reservation situation has deteriorated for four consecutive weeks, 65% less than in the same period last year.

A quarterly survey by the American Chamber of Commerce shows that 14% of small businesses are planning to lay off employees, compared with 9% in July and September. 62% of small business owners in the United States believe that the most serious stage of the epidemic has not yet arrived, and half of them said that unlessBusiness environmentImprove, otherwise your business will be closed permanently within a year. 74% of business owners said they need more help from the government to survive the pandemic.

　　JPMorganAmerican Chief EconomistFerroMichael Feroli told the US media that wages in December may even be lowered, but that the aid package “should be very useful for the economy.”

(Article source: China Business News)

(Responsible editor: DF537)