[ad_1]
Original Caption: Senate Bill With $ 1.9 Billion In Economic Stimulus “Will Get It”
Source: Beijing Commercial Daily
US President Biden did not make people “wait in vain.” The $ 1.9 trillion stimulus bill passed a Senate vote last Saturday. You are just one step away from the final implementation of the bill. At the same time, Biden also promised that the $ 1,400 in grants to the public will be “received” this month. It is clear that such a large amount of money has contributed to the economic recovery, but the early warning of the fiscal deficit and the inflation behind it is a concern that cannot be ignored.
50:49
On the morning of March 6, US time, the US Senate approved Biden’s $ 1.9 trillion economic rescue plan with a 50:49 vote.
However, due to changes in some of the provisions of the bill, it is expected that it will be sent back to the House of Representatives to vote again on March 9 ET. After both houses pass, the bill will go to Biden for official signature next week, and then the Bailout Bill will be released.
When it goes into effect, it will be the second-largest stimulus bill in American history. At the same time, the passage of this plan will give Biden the first victory in legislative work and will lay the foundation for the large-scale infrastructure and manufacturing take-back bill he hopes to propose.
For the passage of this bill, Biden did not hide his happiness either. That day at the White House, Biden said that the Senate vote means “great progress” and that the stimulus package “will alleviate the suffering and provide the most urgent needs” of the American people suffering from the epidemic.
At the same time, Biden also promised to launch a new round of bailouts of up to $ 1,400 to millions of eligible Americans starting this month. Additionally, relief measures include providing $ 350 billion for cash-strapped states and localities, $ 130 billion for schools, and substantial funding for a number of projects including food aid, rental assistance, and distribution of the new corona vaccine.
Senate Majority Leader Schumer said: “This bill will provide more help to more people than anything the federal government has done in decades.” At the same time, he predicted that after the House of Representatives passed the economic stimulus bill on the 9th, Biden will sign the bill before the March 14 deadline because the extended unemployment assistance measures will expire that time. day.
Commitment to persistence
Although the ending was a pleasant surprise, the process was similar to the previous one, with a few twists and turns. Since Biden announced the $ 1.9 trillion economic stimulus plan a week before taking office, the plan has been the source of almost all disputes between the two sides. Before it was officially approved, the Senate held a non-stop 25-hour marathon vote on the amendment.
Compared to Democrats, Republicans appear to be more cautious. They consider that, considering the improvement of economic indicators, many of the contents of this bill are unnecessary and, given that the budget deficit of the United States continues to increase, this is a danger for the healthy development of the economy in the long term.
During the 25-hour discussion, the response to the Democratic Party’s request to “read the full text aloud” took 11 hours.
But in the end, Democrats reached a consensus and scrapped dozens of amendments proposed by Republican lawmakers, most of which were aimed at drastically cutting spending or eliminating funds prepared for local governments.
“The Senate has never spent $ 2 trillion in a more careless manner or through less stringent procedures.” Senate Minority Leader Mitch McConnell said voters have chosen one who promises bipartisan unity and cooperation. President of the United States, but Democrats chose to “force pass” their stimulus bill.
Previously, the House of Representatives had voted to approve the stimulus plan at the time. In accordance with normal procedures, after the Senate passes the bill, the bill will be sent to Biden’s desk for his signature.
But Biden made adjustments to the plan last Wednesday so that the Senate would pass it. Biden’s commitment was to support the review of one of the “most popular” proposals: raising the threshold for the check grant to $ 1,400. Compared to the previous version approved by the House of Representatives, the revised proposal has significantly reduced subsidies.
At the same time, to gain support, Democrats agreed to reduce the scope of the stimulus check, reducing the weekly unemployment benefit claim from the original US $ 400 to US $ 300, and the deadline for payment until September 6. . .
In the end, the economic relief plan approved that day revised the part about unemployment benefits in the version approved by the House of Representatives, and eliminated the content of the statutory federal minimum wage defended by the House Democrats of $ 7.25 per hour to $ 15 per hour.
For this reason, the plan will be returned to the House of Representatives for reconsideration and a vote. However, since the House of Representatives is currently controlled by Democrats, the adoption of the latest stimulus plan is almost “set.”
Inflation warning again
Biden has great confidence in this economic stimulus plan, he said that the plan can increase the gross domestic product of the United States by 1 trillion US dollars.
After the economic stimulus bill, Schumer said Democrats may consider more stimulus measures in the future, depending on the economic and epidemic situation in the coming months. He said, “Our primary goal is to help the American people. If they need more help, we will pass another bill. If this bill is good enough, we will not pass another.”
In this context, economists have raised their economic expectations for the United States. According to the latest Bloomberg monthly survey of economists, the US gross domestic product (GDP) may reach growth of 5.5% this year. The latest Oxford Economics Institute report believes that with accelerated promotion of vaccines and improved health conditions, coupled with financial stimulus brought by the upcoming new crown bailout plan, states’ real GDP growth States this year has reached 7%, while an increase of about 700 10,000 jobs.
Stephen Stanley, chief economist at Amherst Pierpont, a US securities firm, said an additional $ 1,400 round in economic stimulus checks for millions of Americans, along with accelerated unemployment benefits and vaccines, will help sustain annual growth. He said the government’s stimulus measures “will inject adrenaline in a short period of time (into the US economy).” This effect will gradually fade, but at that point, the reopening of the economy and the restoration of normalization will begin to take over.
Yang Shuiqing, an assistant researcher at the Institute of American Studies of the Chinese Academy of Social Sciences, said in an interview with a reporter for the Beijing Business Daily that the implementation of the $ 1.9 trillion bill may provide a boost in the short term. deadline and also give the public a boost. For Biden, this is the first bill passed after he took office and, to some extent, he has continued the “flame” since he took office.
However, it is worth noting that when the economic situation improves, many economic experts in the United States have warned about the current situation, because such a recovery in a short period of time can lead to inflation.
Yang Shuiqing also analyzed that since the bill was passed over the weekend, the market has yet to see a reaction. After getting the money, inflation in a short period of time is definitely predictable. The adoption of the US $ 1.9 trillion stimulus plan, along with the US $ 900 billion aid program approved by the United States in December last year, equates to a short-term increase of US $ 2.8 trillion. in fiscal stimulus. Due to the large scale of the US stimulus plan, it will have a greater impact, because these overissued coins will eventually flow into the global capital market.
However, before the Senate vote, US Treasury Secretary Yellen voiced her support for the stimulus plan and said inflation will not become a problem. At the same time, Fed Chairman Powell also stated that “inflation is not enough to trigger policy adjustments.” He also said that the recent volatility in the bond market “caught my attention,” but this is not the time to adjust the easing policy.
Sun Jie, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, pointed out another problem in an interview with a reporter for the Beijing Business Daily, which is the debt crisis behind the large sums of money in the United States. United. With the economic conditions since the epidemic and the government’s continued spending of money, the United States is already heavily in debt. Of course, the United States can manipulate the outflow and return of US dollars by issuing Treasury bonds, but an excessively large deficit can still carry enormous risks.
Furthermore, while receiving government subsidies, many American companies are concerned that, to make up for the growing deficit, the Biden administration is likely to impose higher tax rates on companies and investors.
Beijing Business Daily Reporter Tao Feng, Intern Reporter Zhao Tianshu
Massive information, accurate interpretation, all in the Sina Finance APP
Editor-in-charge: Qi Qiqi
