Trump’s Legacy: $7.8 Trillion Rise in Debt – By The Fiscal Times Staff (The Fiscal Times) / January 15 2021
Plus, why Biden’s big Covid recue plan could get cut in half
Why Biden’s Ambitious Covid Relief Plan Could Get Cut in Half
President-elect Joe Biden’s plan to “rescue” the American economy proposes $1.9 trillion in federal spending to fund a national vaccine program, boost unemployment benefits, provide additional direct payments to Americans, assist state and local governments, and more. (See more details here.)
“During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck,” Biden said in a speech Thursday night. “The very health of our nation is at stake.”
Economists were largely supportive of the plan. Mark Zandi and Bernard Yaros of Moody’s Analytics projected that Biden’s proposal, if enacted in full, “would provide a large boost to the economy,” leading to GDP growth of nearly 8% this year and 4% next year, while restoring nearly full employment by fall 2022.
Still, analysts at Moody’s and elsewhere were skeptical that Biden’s full plan can pass, given Republican opposition, slim Democratic majorities in Congress and potential procedural hurdles. A number of analysts said they expect the final price tag will be about half of the $1.9 trillion Biden proposed. Economists at Goldman Sachs raised their projections for additional fiscal support likely to be enacted from $750 billion to $1.1 trillion and said that they expected to boost their economic forecast as well.
Here’s how some other analysts, pundits and politicians are reacting to the Biden plan.
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