by Vilasini Nathan
Will it be successful in allowing America to recover from the pandemic? Depends on who you ask.
President Biden announcing his $1.9 trillion stimulus plan in Delaware.
Named the American Rescue Plan Act, President Biden has enacted an $1.9 trillion stimulus package. The stimulus package will hopefully be a way to accelerate the process of bringing the country back to normalcy. It contains many valuable forms of support for people and businesses. However, as with any policy enacted by the government, the stimulus plan has its supporters and detractors.
To understand the views on the stimulus plan of supporters, detractors, and economists, it is important to be aware of the contents of the package. The first component applies to all people—$1400 payments per person with the payments decreasing for individuals earning over $75,000 or families earning over $150,000. On the note of families, parents of children under 18 years of age will be given monthly payments of $250-$300. For the unemployed, benefits will be extended until September with weekly payments of $300, which is the same amount from the December aid package. In addition to direct payments, the package also includes benefits for businesses. There are specific amounts of money being allotted to various businesses, for example, $25 billion for restaurants and bars. The plan also entails incentives for employers to provide paid sick leave for employees who contract or are exposed to COVID-19. This would motivate employees to quarantine, and thus the spread of the virus. Another priority is the reopening of schools and universities, and $170 billion have been set aside to help educational institutions purchase masks, sanitization supplies, accommodate smaller class sizes, and improve ventilation systems. Finally, and perhaps most importantly, the stimulus plan sets aside $70 billion towards improving COVID-19 testing centers and developing a national vaccination campaign which would encourage the American public to get vaccinated.
With all of the components, polarization naturally occurs. There is overwhelming support from the Democrats. After all, President Biden is a Democrat. Supporters specifically cite how the stimulus package will provide recompensation for racial discrimination against minority farmers. They assert that in the past, USDA has failed to provide African-American farmers with the same loans and subsidies. By funding agricultural legal centers and better distributing resources, they believe farmers of color will receive recompense. In addition, many economists have agreed that the package includes many elements which work to contain the virus. At this time, that is the most important thing President Biden could do to improve the economy. As stated by economist Andrew Husby, “Parts of President-elect Biden’s plan target constraints to faster economic recovery, including funding for vaccine rollout, testing and treatments, areas likely to have high bang for the buck. Extending unemployment benefits past the mid-March cutoff will also ease burdens on the most vulnerable parts of the population.” These specific parts of the stimulus package will most directly benefit the economy at this time, according to most economists who have spoken on the plan. Economist Michael Gapen additionally stated that overall, this stimulus package aligned with the proposal he would have made for COVID-19 relief at this time. Overall, economists seem to agree that certain elements of the stimulus package are essential to improving the economy and wellbeing of the American people.
However, the stimulus package has also received some opposition and is surrounded by some doubt. The stimulus package has been overall refuted by Republicans. House minority leader Kevin McCarthy stated, “This isn’t a rescue bill; it isn’t a relief bill; it is a laundry list of left-wing priorities that predate the pandemic and do not meet the needs of American families,” demonstrating his belief that the package is simply a way for the Democrats to meet their leftist needs Some Republicans are unhappy with the stimulus package providing funds to educational institutions, since they want schools to reopen before having to receive aid from Congress. Additionally, some Republicans see fault with the stimulus package incentivizing employers to provide paid leave. They see this as possibly leading to a permanent federal family leave program, which Republicans often see as not ideal. Some economists also find doubt with the stimulus package. Economist Stephen Stanley described the plan as “both expensive and inefficient”, likely due to additions he deems unnecessary, like paid leave. Another economist, Carl Tannenbaum, has stated that he believes the money would be best distributed to vaccine rollouts and medical treatment.
All in all, President Biden’s coronavirus relief package contains many essential elements but is not without its detractors. Funding towards COVID-19 testing, vaccinations, and treatments are expected to be beneficial in bringing the country to normalcy. However, some deem the non-COVID components to be excessive. Overall, the bill was passed on March 11th, and Americans can see its effects for themselves.
Sources:
Condon, C., & Dmitrieva, K. (2021, January 14). Economists See Much to Like in Biden Stimulus, Even If Imperfect. Bloomberg. Retrieved April 14, 2021, from https://www.bloomberg.com/news/articles/2021-01-15/economists-see-much-to-like-in-biden-stimulus-even-if-imperfect
Fordham, E. (2021, February 22). Biden $1.9T coronavirus stimulus package Includes $1B for racial JUSTICE provisions for farmers. Retrieved April 14, 2021, from https://www.foxnews.com/politics/biden-coronavirus-stimulus-racial-justice-black-farmer
Romm, T. (2021, March 10). Congress adopts $1.9 trillion stimulus, securing first major win for Biden. The Washington Post. Retrieved April 14, 2021, from https://www.washingtonpost.com/us-policy/2021/03/10/house-stimulus-biden-covid-relief-checks/
Sherman, N. (2021, March 06). Biden's Covid stimulus plan: It COSTS $1.9TN but what's in it? Retrieved April 14, 2021, from https://www.bbc.com/news/business-56019033