China Joe’s COVID “Relief” Plan Could Shrink GDP Long Term

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)

Biden’s COVID relief plan could shrink economic growth over long-term, study shows

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

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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5 Responses to “China Joe’s COVID “Relief” Plan Could Shrink GDP Long Term”

  1. Elwood P. Dowd says:

    During the Greatest Economy Evuh! the US added several trillion more to the federal debt, now at nearly $28 trillion. How could this have happened under GOP watch, the conservative stewards of all things economic?

    Republicans and FOX News had no issues with the ballooning debt over the past 4 years. They had no problems with hundreds of billions of taxpayer dollars bailing out corporations and millionaires. But now direct payments to suffering American workers is finally just too damn much! What has changed in the past few weeks to trigger such a philosophic sea change?

    Excitable Russia TEACH whines about money going to schools (really he’s worried about teacher’s unions with so many black women), and money going to strapped cities to pay police and firemen (really he’s worried about swarthy urbanites). TEACH knows his audience too well.

    It would have been helpful if Congress and the previous administration had addressed the pandemic that is killing Americans and as a result, the economy, but they couldn’t be bothered what with an election to steal.

    If the GOP wants to further assault the US working class go for it. The Dems have made clear they’ll take the heat for their plan if forced to go alone.

  2. drowningpuppies says:

    The Biden Clown Show!
    All we need is more job killing EOs.

    #Unity Motherf@ckers!
    Bwaha! Lolgf

  3. The Xiden Junta says:

    It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.

  4. drowningpuppies says:

    That’s a relief!
    More clown show!

    #Unity Motherf@ckers!
    Bwaha! Lolgf

  5. drowningpuppies says:

    What a relief!
    100 billion more doses of the vaccine!

    #Unity Motherf@ckers!
    Bwaha! Lolgf

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