Biden Urges Immediate Action On Mass Bailout Case, New War In Congress Is About To Begin



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Original Caption: Biden Urges Immediate Action In Mass Bailout Case. A new war in Congress is about to begin

According to the news on January 16, US President-elect Joe Biden’s $ 1.9 trillion economic stimulus plan will be the beginning of a new legislative struggle. As the Democratic Party insists on a full-scale bailout, some of the proposal’s bailout projects have suffered. Opposition from many Republicans is expected to linger.

Weak December retail sales data released by the United States on Friday added to Biden’s weight. The data showed that US retail sales fell for the third consecutive month. The retail industry, the largest pillar of the US economy, declined in the last quarter.

When Biden announced his plan Thursday night, he said: “It is not difficult to see that we are in an economic crisis that has not been experienced in generations. Action must be taken, and we must act now.”

Some of the contents of the package may be enough to attract moderate Republicans to vote in the Senate, including the $ 400 billion anti-epidemic and economic reset measures, and a $ 1,400 increase in direct cash payments to $ 600 per person.

Some other measures Biden proposed may cause bipartisan strife, such as raising the federal minimum wage to more than $ 15 an hour, providing large-scale assistance to the state government, and providing supplemental unemployment benefits through the end of September.

It is expected that after the negotiations, the two sides can reach a minor compromise in the coming weeks, and a full-scale budget with the Democratic Party as the focus will be announced later this year. Biden said he plans to announce the second major package at the joint meeting of Congress next month, aimed at long-term economic reconstruction.

Florida Republican Senator Marco Rubio called for the rescue plan to be split into several parts, tweeting that Biden, who has served in the Senate for more than 35 years, knew that “the plan announced tonight will not be ‘fast’ on the Congress. per. “Rubio called for the first implementation of the new $ 1,400 per person cash distribution plan.

Goldman Sachs analyst Alec Phillips wrote in an investigative report to clients that while Democrats can pass a large-scale bill by simple majority, they may still need to downsize the bailout case if they want to. get bipartisan support. Goldman Sachs raised its forecast for Congress to pass the size of the bailout bill in the near future from $ 750 billion to $ 1.1 trillion.

Biden has many advantages in the fight, including using a special tool called budget reconciliation to bypass Senate Republicans.

If Biden fails to agree on the entire bill, provisions like ransom checks and a $ 400-per-week unemployment insurance increase will be included in the budget bill, and only 50 votes will pass. However, there is still controversy over whether the minimum wage can also be increased in this way.

Source: Financial World NetworkReturn to Sohu to see more

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